Christopher Hawn, a registered representative from Furlong, Pennsylvania, formerly with Alps Distributors, was fined and suspended from FINRA membership as a result of an investigation into allegations that he participated in private securities transactions without obtaining firm approval. Doing so is a violation of FINRA rules. As a result of the investigation Christopher Hawn entered into an acceptance waiver and consent agreement with FINRA in which he neither admitted nor denied the findings, but agreed to a suspension of six months and a fine of $10,000.
In June 2017, Christopher Hawn agreed to the suspension and FINRA published its findings that Hawn failed to inform his broker dealer about his private securities transaction dealings. Hawn had provided an investment opportunity to his uncle and one of his friends, and they invested approximately $100,000 in the transactions. FINRA found that Hawn gave out investment information and advertising materials on the deal that had not been approved by FINRA. These materials failed to disclose the risks inherent in the deal. Such disclosures are important, as they could impact investors’ financial returns.
FINRA also found that Hawn failed to properly disclose his private business dealings to his broker dealer Alps Distributors, and falsified certifications that stated Alps knew about and approved his outside activities.
Christopher Hawn’s registration and disciplinary history
In order to lawfully sell investments to the public, one must either be registered or exempt from registration.
Christopher Hawn was registered with Alps Distributors from May 2013 to August 2015 and SC Distributors from September 2012 to May 2013.
According to FINRA’s CRD disclosure report, Hawn has been the subject of one employment termination because of allegations and one regulatory investigation.
FINRA is the primary regulator for broker dealers and registered representatives in the United States. FINRA’s role is to promulgate standards and practices for the brokerage industry and to ensure compliance with its rules by licensed entities and individuals.
FINRA has two primary ways to ensure compliance with the securities laws: by means of an enforcement unit that investigates and disciplines wrongdoing, and through the establishment of an arbitration forum where investors can resolve disputes against broker dealers. FINRA’s arbitration forum, FINRA Dispute Resolution is the largest arbitration forum in the country for resolving investor disputes, and typically processes over 10,000 filings annually.
The Law Office of David Liebrader practices exclusively in the field of investment loss recovery. For the past 24 years, we have dedicated our law practice to assisting investors who have been victims of investment fraud via unlawful and unsuitable investment transactions. During that time, we have recovered money for over one thousand individuals, pension plans, trusts, and companies. The recoveries we have obtained via judgments, awards and settlements on behalf of our clients exceed $40,000,000.
If you suspect that you have been the victim of investment fraud, or had a financial advisor recommend unsuitable investments to you, call us today for a free, confidential consultation at (702) 380-3131.