Broker Misconduct - Law Offices of Robert Wayne Pearce

Jul 29, 2015

State Farm Representative Barred for Falsifying Document

The Department of Enforcement of the Financial Industry Regulatory Authority (FINRA) alleged that Kenneth Statly of Grand Ledge, Michigan fabricated insurance claims for two customers in violation of FINRA Rule 2010. Statly entered the securities industry in 1997 when you became associated with State Farm VP Management Corp. (SFVPMC). In 1998, Statly became registered as an Investment Company Products/Variable Contracts Representative and was employed by SFVPMC through February 2014. Without admitting or denying the findings, and sole for the purpose of the proceeding, Statly agreed to the allegations that on three separate occasions in 2013, he fabricated or falsified insurance claims for the purpose of offsetting customers’ premium increases which he then settled and claimed. FINRA also alleged that on one occasion in 2013, Statly settled and paid an insurance claim that he knew to have been fraudulently inflated willfully violating FINRA Rule 2010.

Jul 27, 2015

Former Morgan Stanley and Wells Fargo Representative Suspended

Sylvester King Kr. of Miramar, Florida submitted a Letter of Acceptance Waiver (AWC) to the Department of Enforcement of the Financial Industry Regulatory Authority (FINRA) for allegedly concealing loans to customers participating in undisclosed private securities transactions and providing false information to his employer. In 2009 King and his partner formed PKG, a d/b/a branch office located in Fort Lauderdale, Florida that was registered with Morgan Stanley and later Wells Fargo. PKG provided financial “concierge” services to professional athletes that played in the NFL and NBA. FINRA found that from November 14, 2011 through January 23, 2012, King assisted his partner in loaning approximately $399,500 to three professional athletes in the NFL and NBA who were also Wells Fargo customers. FINRA alleged that separate accounts were made and various wiring techniques were used to conceal the loans from Wells Fargo and its reporting requirements.

Jul 24, 2015

LaSalle Securities Representative Suspended for Unapproved Transaction

Jeffrey Kerr of New Milford, Pennsylvania submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Department of Enforcement of the Financial Industry Regulatory Authority (FINRA) for allegedly participating in private securities transactions without his member firms approval. Kerr first became registered in the securities industry as a general securities representative (GSR) in 1996. In 2001, Kerr became a GSR at LaSalle St. Securities, LLC (LLS) and has remained there since. Without admitting or denying the FINRA finding for the sole purpose of the proceeding, Kerr agreed to the sanctions for which he allegedly participated in private securities transactions without providing prior notice to LLS.

Jul 22, 2015

Former Austin Texas UBS and Oppenheimer Stockbroker Fined and Suspended

Zahir Walji of Austin, Texas submitted an Acceptance, Waiver and Consent (AWC) in which he was assessed a fine by the Department of Enforcement for the Financial Regulatory Authority (FINRA) and suspended from association with any FINRA member for a period of three months for allegedly failing to provide proper written notice about his outside business activities and failing to disclose two outside business activities. Walji has been associated with two FINRA member firms since entering the industry in 2006. From January 2006 through October 2012, Walji was associated with UBS Financial Services, Inc. (UBS). On October 12, 2012, UBS filed a Form U5 terminating Walji for “engaging in unapproved outside business activities and private securities transactions with firm clients”. Walji was a representative for Oppenheimer & Co. Inc. from October, 2012 until his termination in May, 2014.

Jul 20, 2015

Former Connecticut Stifel Nicolaus Representative Suspended for Alleged Falsifications

Patrick Terrell of Mystic, Connecticut submitted a Letter of Acceptance, Waiver and Consent Agreement (AWC) for the purpose of settlement. Without admitting or denying the findings, Terrell was alleged by the Department of Enforcement for the Financial Industry Regulatory Agency (FINRA) to have falsified bank statements. Terrell first became registered with FINRA as a General Securities Representative (GSR) in March 1998. From 1998 through November, 2011, Terrell acted as a GSR for several FINRA member firms. Beginning November 28, 2011, Terrell was a registered as a GSR through Stifel, Nicolaus, & Co until June 26, 2014.

Jul 17, 2015

Fort Worth Texas FSC Securities Representative Barred for Alleged Misconduct

The Department of Enforcement of the Financial Industry Regulatory Authority (FINRA) received an Offer of Settlement to a complaint that alleged James Scott of Fort Worth, Texas knowingly and substantially aided and abetted another individual engaged in the offer and sale of securities transactions in Texas when the individual was not registered as a stockbroker with the State of Texas or FINRA. Scott became a FINRA member in 1997 and was associated with eleven different FINRA and NASD members throughout his career. Between March 28, 2012 and December 18, 2012, Scott was registered with FINRA through FSC Securities Corporation (FSC) as a General Securities Representative (GSR) and between August and December 2012, acted as a General Securities Principal (GSP).

Jul 15, 2015

Former New York Cetera Investment Broker Barred for Alleged Fraud

David Santos of Niskayuna, New York submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Department of Enforcement of the Financial Industry Regulatory Authority (FINRA) after allegedly falsifying letters that enabled an imposter to fraudulently transfer funds from a client and execute unauthorized sales of stocks. Santos entered the securities industry in 1991 when he became associated with a FINRA member firm. In March 1998, Santos became a General Securities Representative (GSR). Between 1998 and 2006, Santos was a GSR with three different FINRA member firms. On September 2, 2006, Santos became registered as a GSR with Cetera Investment Services, LLC (Cetera). Santos later became a General Securities Principal with Cetera in April 2010 and remained there until he was terminated in May 2014.

Jul 13, 2015

Former Fort Lauderdale Morgan Stanley and Wells Fargo Representative Barred

Aaron Parthemer of Fort Lauderdale, Florida submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Department of Enforcement of the Financial Industry Regulatory Agency (FINRA) for the purpose of settlement for allegedly engaging in several outside business activities without his firm’s prior written knowledge. Parthemer first became registered with FINRA as a General Securities Representative (GSR) in October 1994. From June 2009 through October 2011, Parthemer was registered with Morgan Stanley Smith Barney LLC (Morgan Stanley) as a GSR. On November 4, 2011 Morgan Stanley filed a Uniform Termination Notice for Securities Industry Registration (Form U5) under Parthemer’s request. From October 21, 2011 to present, Parthemer has been registered through Wells Fargo Advisors, LLC (Wells Fargo) as a GSR.

Jul 10, 2015

Miami Florida Oppenheimer & Co. Representative Fined and Suspended

Miami, Florida resident Patrick McGrath III submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Department of Enforcement of the Financial Industry Regulatory Authority (FINRA) with the purpose of settling the alleged violations that he borrowed funds from his member firm’s client and made false statements while under investigation. McGrath entered the securities industry in 1984 and has been associated with several FINRA-regulated broker dealers throughout his career. In April 2009, McGrath became associated with Oppenheimer & Co., Inc. (Oppenheimer) as a registered representative. However, in January 2014, Oppenheimer filed a Uniform Termination Notice for Securities Industry Registration (Form U5) reporting that McGrath failed “to timely finalize arrangements to repay loans he received” from a Oppenheimer customer.

Jul 8, 2015

Carrollton Texas REIT Viatical Brokerage Expelled From FINRA

Fox Financial Management Corporation (Fox Financial) of Carrollton, Texas, Brian Murphy of Frisco, Texas and James Rooney of Carrolton, Texas were all fined and suspended by the Department of Enforcement for the Financial Industry Regulatory Authority for allegedly failing to supervise a registered representative and for failing to establish, maintain and enforce written supervisory procedures. Fox Financial’s primary business was selling private placements in real estate investment trusts (REITs) and life insurance settlement funds (viaticals) issued by a Fox Financial affiliate. Rooney and Murphy were both General Securities Principals and General Securities Representatives. Rooney was the firm’s President from 2005 until Fox Financial ceased to be a FINRA member. Murphy was Fox Financial’s Chief Compliance Officer (CCO) from 2008 until Fox Financial ceased to be a FINRA member. Rooney and Murphy shared supervisory responsibilities for Fox Financial registered representatives.