On July 30 Robert Russel Tweed of Glendale, California appealed an Office of Hearing Officers (OHO) decision to the National Adjudicatory Council (NAC) in which he was fined $50,000 and barred from association with any FINRA member in all capacities for allegedly in violating FINRA Rule 2010 and Sections 17(a)(2) and (3) of the securities act of 1933. The sanctions are not in effect, pending review of the OHO decision by the NAC.
Since 1992, Robert Tweed has owned and controlled an investment advisory firm called Tweed Financial Services, Inc. which served as the general partner of Athenian Fund LP (Athenian), the hedge fund that Tweed also owned and controlled. According to FINRA, between November 2009 and March 2010, Tweed obtained $1.6 million from 23 retail customers through a false and misleading private placement memorandum (PPM). The OHO stated that Tweed used the PPM to offer and sell interests in Athenian. Tweed allegedly failed to disclose that he used the funds money in investments that lost money instead of a fund that would use a quantitative stock trading algorithm. FINRA’s OHO also stated that Tweed failed to disclose that he replaced the entity that would trade the hedge fund’s capital with another entity controlled by another person who would manage the assets, and Tweed would receive a share of the fees that would lower the return on investors money.
Stockbrokers have been known to engage in many practices that may violate industry and firm rules, practices, and procedures. In order to protect investors from stockbroker misconduct, FINRA rules require brokerage firms to establish and implement a supervisory system. The implementation of these industry rules requires supervisors to monitor their employees to ensure compliance with federal and state securities laws, securities industry rules and regulations, and the brokerage firm’s own policies and procedures. If broker-dealers and/or their supervisors fail to establish and implement these protective measures, they may be liable to investors for damages which flow from the broker’s misconduct. Therefore, investors who have suffered losses stemming from unauthorized transactions, and/or other misconduct by their broker can file claims to recover damages against broker-dealers, like Tweed Financial Services.
Have you suffered losses in your Athenian Fund LP or Tweed Financial Services account due to false and or misleading statements by your broker? Was Robert Russel Tweed your stockbroker? If so, call Robert Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation. Mr. Pearce is accepting clients with valid claims against Athenian Fund LP or Tweed Financial Services stockbrokers which may have caused investors’ losses.
The most important of investors’ rights is the right to be informed! This Investors’ Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 40 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues. The lawyers at our law firm are devoted to protecting investors’ rights throughout the United States and internationally! Please visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at pearce@rwpearce.com for answers to any of your questions about this blog post and/or any related matter.
Robert Wayne Pearce
Robert Wayne Pearce of The Law Offices of Robert Wayne Pearce, P.A. has been a trial attorney for more than 40 years and has helped recover over $125 million dollars for his clients. During that time, he developed a well-respected and highly accomplished legal career representing investors and brokers in disputes with one another and the government and industry regulators. To speak with Attorney Pearce, call (800) 732-2889 or Contact Us online for a FREE INITIAL CONSULTATION with Attorney Pearce about your case.
Rate this Post
Loading...