Articles Tagged with PFS Investments

Jose Enrique Jimenez, a former registered principal with PFS Investments, Inc., submitted a Letter of Acceptance, Waiver and Consent (AWC) in which he was suspended and assessed a deferred fine of $10,000 by the Financial Industry Regulatory Authority (FINRA) for allowing his son, who was unregistered, to solicit prospective customers and recommend the purchase of mutual funds.

According to FINRA, Jose Jimenez, of Inglewood, California, allowed his unregistered son to solicit prospective customers, make over 100 mutual fund presentations, and recommend the purchase of mutual funds which resulted in total sales of over $800,000 in approximately 35 accounts.  Further, Mr. Jimenez allowed his son to assist customers with completion of the necessary documents and to enter client information into the firm’s computer system utilizing his personal credentials.  FINRA found that Mr. Jimenez falsely stated on three firm compliance questionnaires that he did not allow an unregistered individual to engage in securities activities.  Continue Reading

Marco Daniel, a registered representative with the Chula Vista, California branch of PFS Investments, consented to, but did not admit to or deny, the sanction and the entry of the Financial Industry Regulatory Authority’s (FINRA) findings that he borrowed money from a customer, failed to disclose his outside business activity, and falsely reported in a firm questionnaire his involvement in this misconduct.

According to FINRA, Marco Antonio Daniel (aka Tony Daniel), of Chula Vista, California, borrowed a total of $19,015 from a customer and did not repay the loans until the customer had complained to the firm. Mr. Daniel also failed to disclose the loans or to receive the firm’s approval. Further, he failed to provide notice to his firm that he had engaged in outside business activity involving the use of the borrowed money. Continue Reading

Norma M. Skeete, an Arlington, Virginia-based registered representative formerly employed by PFS Investments Inc. (PFS Investments), was named a respondent in a Financial Industry Regulatory Authority (FINRA) complaint alleging she made negligent misrepresentations to a PFS Investments customer in connection with a loan that customer made to a real estate venture.

According to the Complaint, Norma Skeete made multiple negligent misrepresentations to her PFS Investment customer. FINRA alleged that Ms. Skeete exchanged emails with the customer, allegedly assuring the investor that the loan would be safe and would be returned. Based on what business partners told Ms. Skeete, she allegedly responded to an email from her PFS Investments customer seeking an update about his $160,000 loan. According to FINRA, Ms. Skeete allegedly told the customer “things are going according to plan,” and that the loaned funds were “not in jeopardy” and were “absolutely going to be reimbursed.” However, Ms. Skeete allegedly neglected the due diligence to actually look into the independent steps necessary to understand how the loans would be documented, where the funds would be held, and who would be holding the funds. Continue Reading

Michael Willard Korson, a former registered representative with PFS Investments, Inc. (PFS Investments) and HBW Securities, LLC (HBW Securities) has been barred from association with any Financial Industry Regulatory Authority (FINRA) member in any capacity for allegedly failing to report his outside business activities and other industry violations.

Without admitting or denying FINRA’s findings, Michael Korson consented to the sanctions and to the findings that he neglected to timely and accurately notify his member firm of his outside business activities. Mr. Korson also falsely stated when his involvement with the outside business first began. According to FINRA, Mr. Korson participated in private securities transactions, involving his outside business, with sales of convertible debentures to firm customers. He also participated in the sale of preferred stock to a non-customer without providing the necessary prior written notice to his firm. Continue Reading

Former PFS Investments Inc. (PFS) broker Darwin Hayle has been banned from the financial industry and fined $42,500 for allegedly misappropriating investor funds. Darwin Hayle, of Boca Raton, Florida, allegedly sold promissory notes to his clients, claiming the notes were backed by the U.S. Small Business Administration (SBA), according to the Florida Office of Financial Regulation (FL-OFR) complaint. However, Darwin Hayle allegedly showed the investors false documents which included a forged signature of an SBA representative. The FL-OFR never approved those promissory notes as legal securities and they were never guaranteed by the SBA. Continue Reading