Articles Tagged with Financial West Group

Sean J. Waters of Hemet, California submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Financial Industry Regulatory Authority (FINRA) in which he has been barred for allegedly engaging in churning and excessive and unsuitable trading in violation of Section 10(b) of the Exchange Act; Exchange Act Rule 10b-5; and FINRA Rules 2020, 2111, and 2010.

From December 2010 until April 2017, Mr. Waters was registered with Financial West Group as a General Securities Representative. Between January 2013 and March 2016, Waters engaged in churning and excessive and unsuitable trading in two accounts held by one customer. FINRA stated that during the relevant period, Waters exercised de facto control over and made all trading decisions in the customer’s account including which specific securities to buy and sell, the quantity of securities to buy and sell, and when to buy and sell the securities. According to FINRA, Waters executed 540 purchase transactions and executed 510 sale transactions. FINRA further stated that Water’s trading resulted in more than $88,000 in losses of the $150,000 the customer initially transferred to the firm. Waters allegedly earned 40 percent of his commissions solely from the trading in the customer’s account totaling $115,000. Continue Reading

Kelly Clayton Althar, a former registered representative with Financial West Group, submitted an Offer of Settlement to the Financial Industry Regulatory Authority (FINRA) in which he was barred from association with any FINRA member in all capacities amid allegations that he made unsuitable recommendations and excessively traded two accounts held by an elderly customer.

According to FINRA, Mr. Althar, of San Pablo, California, was the registered representative for an elderly customer with hopes of retiring in a few years.  Without admitting or denying FINRA’s findings, Mr. Althar consented to FINRA’s findings that he exercised de facto control over two of his customer’s accounts and utilized that control to place frequent trades without consulting his customer in order to generate increased commissions for himself.  FINRA found that Mr. Althar often purchased, sold, and subsequently repurchased the same security in his customer’s accounts in order to generate commissions while his customer suffered substantial losses.   During the relevant period, FINRA stated that Mr. Althar generated approximately $91,000 in commissions from his excessive IRA trades, and an additional $48,000 in commissions in his customer’s individual. His customer, who was close to retirement and purportedly only wanted low-risk investments, suffered extensive losses in the value of her two accounts, which dropped by more than 50%. Continue Reading