FINRA Broker Disciplinary Action Report: September 2019
Each month, the agency that regulates the financial industry, FINRA (Financial Industry Regulatory Authority), produces a detailed report that runs down all disciplinary actions recently taken against brokerage firms and brokers. We strongly encourage any investor who suspects their broker and/or broker-dealer of having lost them money on dubious terms to at least skim this report to see if you recognize any names, schemes, products, or securities.
For our part, we like to pick out some of the highlights from each report. Specifically, we’re looking for schemes or abuses that might be more far-reaching than the individual cases brought through the FINRA arbitration process.
Brokers & Brokerages Barred, Suspended, and/or Fined by FINRA
CV Brokerage, Inc (CRD #462, Williamstown, New Jersey) July 2, 2019
Without admitting or denying the findings, the firm consented to the sanctions and to the entry of findings that it failed to establish and maintain a supervisory system and failed to establish, maintain and enforce WSPs, reasonably designed to achieve compliance with applicable FINRA rules regarding the participation of firm registered representatives in private securities transactions.
Planmember Securities Corporation (CRD #11869, Carpinteria, California) July 3, 2019
Without admitting or denying the findings, the firm consented to the sanctions and to the entry of findings that it had no WSPs or reasonable supervisory system for the surveillance of rates of variable annuity exchanges.
Park Avenue Securities LLC (CRD #46173, New York, New York) July 16, 2019
An AWC was issued in which the firm was censured and required to provide remediation to eligible customers who qualified for, but did not receive, the applicable mutual fund sales charge waivers. As part of this settlement, the firm agrees to pay restitution to eligible customers, which is estimated to total $640,552 (i.e., the amount eligible customers were overcharged, inclusive of interest). Without admitting or denying the findings, the firm consented to the sanctions and to the entry of findings that it disadvantaged certain retirement plan and charitable organization customers who were eligible to purchase Class A shares in certain mutual funds without a front-end sales charge.
James Thomas Booth (CRD #1906145, Norwalk, Connecticut) July 1, 2019
Without admitting or denying the findings, Booth consented to the sanction and to the entry of findings that he converted customer funds.
Brenda Ann Smith (CRD #4348518, Philadelphia, Pennsylvennia) July 2, 2019
Without admitting or denying the findings, Smith consented to the sanction and to the entry of findings that she refused to provide documents and information requested by FINRA in connection with an ongoing FINRA investigation into potential misstatements about the financial performance of an investment fund that were made during the course of private securities transactions in which she participated.
Jeffrey Alan Blutstein (CRD #1398688, Ridgefield, Connecticut) July 3, 2019
Without admitting or denying the findings, Blutstein consented to the sanction and to the entry of findings that he refused to provide documents and information requested by FINRA in connection with an investigation into whether he potentially violated FINRA rules by engaging in undisclosed outside business activities while associated with a member firm.
Thomas John Marino (CRD #4438533, Bradenton, Florida) July 18, 2019
Without admitting or denying the findings, Marino consented to the sanction and to the entry of findings that he refused to provide documents and information requested by FINRA in connection with its investigation into his possible misuse of funds from a senior customer.
Robert Frederico Montes (CRD #835488, Oldsmar, Florida)
Without admitting or denying the findings, Montes consented to the sanction and to the entry of findings that he refused to provide documents and information requested by FINRA in connection with an investigation into whether he potentially misused an elderly customer’s assets.
William Mark Heiden (CRD #2885156, Irvine, California) July 5, 2019
An Offer of Settlement was issued in which Heiden was assessed a deferred fine of $5,000, suspended from association with any FINRA member in all capacities for six months and ordered to pay deferred restitution to a customer in the amount of $12,084, plus interest. Without admitting or denying the allegations, Heiden consented to the sanctions and to the entry of findings that he engaged in unauthorized trading in the accounts of two elderly customers.
For the full FINRA Disciplinary Report, please click here.
