Library - Law Offices of Robert Wayne Pearce

Former Dakota Director Carlos Ricardo Fuenmayor Suspended for Misconduct

Carlos Ricardo Fuenmayor of Key Biscayne, Florida submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Financial Industry Regulatory Authority (FINRA) for allegedly acting as a General Securities Principal and a General Securities Representative without being registered in either capacity, in violation of NASD Rules 1021 and 1031, and FINRA Rule 2010. From September 2013 through October 2016, Carlos Ricardo Fuenmayor was associated with Dakota Securities International, Inc. (Dakota) as Director and 20% owner. According to FINRA, Fuenmayor securities licenses had lapsed in September 2013 when he purchased 20% ownership interest in Dakota. The findings stated that Fuenmayor did not become registered as a General Securities Principal or a General Securities Representative until 2015 but was actively engaged in Dakota’s securities business and in the management of its securities business. In addition to the FINRA findings, Fuenmayor was primarily responsible for the hiring and management of personnel at Dakota, advised registered representatives about different types of trading strategies and ordered the registered representatives to execute trades.

Jul 22, 2020

Former NYLife Securities Broker William Hite Suspended by FINRA for Forgery

William James Hite, a former registered representative of NY Life Securities LLC, submitted a Letter of Acceptance, Waiver, and Consent (AWC) in which he consented to, but did not admit to or deny, the Financial Industry Regulatory Authority’s (FINRA) findings that he forged an elderly customer’s signature on four documents. According to FINRA, William Hite of Shelton Connecticut allegedly forged his elderly customer’s signature when he was not successful in reaching him to sign the document. Subsequently, Mr. Hite electronically forged the same customer’s signature on three more documents, including a fixed annuity application, client profile form, and replacement of life insurance or annuities form. What Mr. Hite was unaware of at the times of the forgeries, is that his elderly customer had passed away.

Jul 20, 2020

Former MML Investors Broker William McGowan Suspended for Private Securities Transactions

William Blake McGowan of Little Rock Arkansas submitted a Letter of Acceptance, Waiver, and Consent (AWC) in which he was fined and suspended by the Financial Industry Regulatory Authority (FINRA) for engaging in private securities transactions, a type of broker misconduct known as selling away. In July 2017, while employed by MML Investors Services, LLC, William McGowan purchased $55,000 of securities in a pooled real estate investment. More specifically, Mr. McGowan purchased shares in an Arkansas LLC formed to purchase and manage vacation property rentals in Florida. FINRA found that Mr. McGowan failed to provide the required prior written notice to his member firm of the transaction. Further, he falsely stated on a compliance attestation that he had not made any personal investments.

Jul 17, 2020

Former Cetera Advisors Broker Scott Kozak Suspended for Private Securities Transactions

Scott Patrick Kozak of Highlands Ranch, Colorado submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Financial Industry Regulatory Authority (FINRA) in which he was suspended for two years for allegedly engaging in private securities transactions, known also as selling away. Between 2011 and 2014, while registered with Cetera Advisors LLC, Scott Kozak allegedly engaged in private securities transactions without written notice or approval from his member firm. According to FINRA, Mr. Kozak solicited Cetera customers and registered representatives to invest $1,166,000 in two companies’ securities. Mr. Kozak also invested his own money in the companies. Further, Mr. Kozak was found by FINRA to have solicited investments in promissory notes from seven Cetera customers, who collectively invested $380,000 in the promissory notes. NASD Rule 3040 prohibits associated persons from participating in any manner in a private securities transaction outside the regular course or scope of their employment without first providing written notice to the member firm. The written notice must describe in detail the proposed transaction and the person’s proposed role therein, and whether he has received or may receive selling compensation in connection with the transaction. A violation of NASD Rule 3040 is a violation of FINRA Rule 2010, which requires members and associated persons to observe high standards of commercial honor and just and equitable principles of trade in the conduct of their business.

Jul 15, 2020

FINRA Suspends Former PlanMember Securities Broker Quincy Caldwell for Unsuitable Mutual Fund Trades

Quincy DeEarl Caldwell, of Katy Texas, submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Financial Industry Regulatory Authority (FINRA) for allegedly recommending and executing unsuitable mutual fund trades, including switches, in customer accounts, causing the customers to suffer losses of approximately $57,820. FINRA alleged that Quincy Caldwell recommended and effected unsuitable mutual fund trades in six customer accounts, including 22 mutual fund switches. Whereas Class A mutual funds are designed to be longer-term investments, Mr. Caldwell allegedly made 119 unsuitable short-term mutual fund trades, an average holding time of just 110 days. Due to Mr. Caldwell’s unsuitable recommendations and short-term mutual fund trades, his six customers incurred $57,820 in Class A mutual fund sales charges.

Jul 13, 2020

Former National Planning Corporation Broker Louis Cook Barred for Misrepresentations

Louis Cook of Staten Island, New York submitted a Letter of Acceptance, Waiver, and Consent (AWC) to the Financial Industry Regulatory Authority (FINRA) in which he was barred from association with any FINRA member for allegedly making intentional misrepresentations to customers, many of whom were elderly investors. From November 2009 to November 2017, Louis Cook was employed with National Planning Corporation as an Investment Company Products/Variable Contracts Representative. According to FINRA, Louis Cook made intentional misrepresentations in a cover letter he sent to customers which included a third-party authorization form. Mr. Cook induced his elderly investor customers to sign the authorization form by misrepresenting that the form needed to be signed in order for Mr. Cook to continue servicing their variable annuity policies. After inducing his customers to sign the authorization forms, Mr. Cook is alleged by FINRA to have used the customers’ authorization to withdraw money from customer accounts for his own personal use. By making intentional misrepresentations to his customers, which induced them to sign the Third Party Authorization Forms, Mr. Cook allegedly violated FINRA Rule 2010. By improperly using funds from his customers’ variable annuities for his own personal use, Mr. Cook separately is alleged to have violated FINRA Rules 2150(a) and 2010. Without admitting or denying FINRA’s findings, Louis Cook has been barred from association with any FINRA member in any capacity.

Jul 10, 2020

Former Edward Jones Broker Jennifer Basey Suspended by FINRA for Forgery

Jennifer Lillian Basey, a former registered representative of Edward D. Jones & Co., submitted a Letter of Acceptance, Waiver, and Consent (AWC) in which she consented to, but did not admit to or deny, the Financial Industry Regulatory Authority’s (FINRA) findings that she falsified a customer’s signature and forged customers’ initials. According to FINRA, Jennifer Basey of Lehigh Acres Florida falsified a customer’s signature on a document to facilitate an authorized customer asset transfer. Further, between October 22, 2019 and November 5, 2019, Ms. Basey forged the initials of two other customers, a married couple, to facilitate another transfer. For violating FINRA Rule 2010, which requires FINRA members to observe high standards of commercial honor, FINRA assessed Ms. Basey a fine of $5,000 and suspended her for two months. The suspension is in effect from April 20, 2020 through June 19, 2020.

Jul 8, 2020

Former Lincoln Financial Broker Imran Razvi Suspended for Private Securities Transactions

Imran Nazir Razvi of Frederick Maryland submitted a Letter of Acceptance, Waiver, and Consent (AWC) in which he was fined and suspended by the Financial Industry Regulatory Authority (FINRA) for allegedly engaging in private securities transactions, a type of stockbroker misconduct known as selling away. Between April 2017 and December 2017, while employed by Lincoln Financial Securities Corporation, Imran Razvi was denied approval to use a company he formed to refer investors to a supposed real-estate investment fund called Woodbridge Group of Companies LLC (Woodbridge). Despite being denied by his member firm, Imran Razvi, through his ownership of the company, received portions of commissions received by agents under his supervision. Subsequently, Woodbridge filed for bankruptcy and the U.S. District Court for the Southern District of Florida issued judgments against Woodbridge and its former owner, Robert Shapiro, who were required to disgorge the ill-gotten gains and pay a civil penalty.

Jul 6, 2020

Former PHX Financial Stockbroker Halil Kozi Suspended for Excessive Trading

In an Offer of Settlement, Halil Kozi, of North Middletown, New Jersey has been suspended for two years by the Financial Industry Regulatory Authority (FINRA) for excessive trading, known as churning, and unsuitable options recommendations and trades. From June 2013 through February 2015, Halil Kozi was associated with PHX Financial, Inc. (PHX). According to FINRA, Mr. Kozi recommended transactions in a customer’s account that were quantitatively unsuitable and excessive and inconsistent with the customer’s risk profile or financial situation. FINRA found that Mr. Kozi recommended risky, speculative equity and options transactions that generated commissions of more than $135,000 while causing the customer to incur losses of $72,000. By recommending quantitatively unsuitable excessive trading for the customer’s account, Mr. Kozi allegedly violated FINRA Rules 2111 and 2010. Without admitting or denying FINRA’s findings, Halil Kozi consented to the sanctions and was suspended from association with any FINRA member for two years. The suspension is in effect from April 6, 2020 through April 5, 2022. No monetary sanctions were issued due to Mr. Kozi’s financial status.

Jul 3, 2020

Former Sagepoint Financial Broker Frederic O’Hara Suspended for Private Securities Transactions

Frederic Thomas O’Hara of Stuart, Florida submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Financial Industry Regulatory Authority (FINRA) in which he was suspended for nine months and assessed a deferred fine of $10,000 for allegedly engaging in private securities transactions, a type of broker misconduct known as selling away. Between February 2010 and August 2015, while registered with Sagepoint Financial, Inc., Frederic O’Hara allegedly engaged in private securities transactions without written notice or approval from his member firm. According to FINRA, Mr. O’Hara engaged in outside business activity by serving as a director of a private company without providing the required written notice to his member firm. Mr. O’Hara also participated in five undisclosed private securities transactions in that same company’s shares totaling $63,000, which included his own $10,000 purchase. The outside business activity and private securities transactions were violations of NASD Rule 3030, FINRA Rule 3270, NASD Rule 3040, and FINRA Rule 2010.

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