Articles Posted in Disciplinary Actions

In September, 2016, the Financial Industry Regulatory Authority (“FINRA”) announced that Robert W. Baird of Milwaukee, Wisconsin submitted an acceptance, waiver and consent letter regarding its failure to supervise a registered representative and correct a trading error that lead to a $34,000 loss in a customer’s account.

FINRA’s allegations against Robert W. Baird concerned the firm’s failure to investigate red flags indicating that a registered rep had allocated a $34,000 trading error to a customer, rather than to the firm.  A Baird supervisor approved of the allocation until the customer complained, which lead to the firm reimbursing the customer for the mistake.  FINRA also found that the firm did not establish and maintain written supervisory procedures to properly investigate and correct trading errors.

Registration and disciplinary history

FINRA, Illinois bar David Hackney, former broker with LPL.

On June 23, 2015 the state of Illinois, through its Secretary of State’s Securities Division published a consent order revoking David Hackney’s securities salesperson and investment advisor registrations, and permanently barred him from selling securities in the state of Illinois.

The Securities Divisions’ complaint stems from an investigation into excessive trading in at least three elderly customer accounts while Hackney was a registered representative with LPL Financial.

Thomas Hayes, former broker with Bosc sued by Bernalillo County over bond portfolio losses.

On November 20, 2014 the state of New Mexico’s Securities Division issued an opinion and notice of contemplated action against Thomas Hayes, a former registered representative with Bosc, Inc., as well as Bosc, Inc.  for making unsuitable investment recommendations on behalf of the Bernalillo County Treasurer’s office.

The Securities Divisions’ complaint stems from an investigation into portfolio losses suffered by Bernalillo County via its investments in Fannie Mae and Freddie Mac bonds.  The investigation found that the portfolio constructed by Hayes exposed the county to significant risk, far outweighing any potential gains expected to be realized. In order to mitigate the risk, the county sold the portfolio and incurred a $16 million loss

John Waszolek charged by Arizona Corporation Commissioner.

On July 8, 2016 the Corporation Commissioner for the state of Arizona, acting through the Securities Division charged John Waszolek, a former registered representative with Morgan Stanley and Raymond James with violations of the Securities Act of Arizona, specifically section 44-1801.

The Securities Divisions’ complaint stems from an underlying FINRA Enforcement proceeding that found that Waszolek took advantage of an elderly client by having the client appoint Waszolek as a successor trustee and beneficiary of a lucrative trust, despite knowing of the client’s declining mental condition and lack of capacity.

Lance Shaw barred by FINRA.

Lance Shaw, a registered representative from Haverford, PA formerly with LPL Financial of Wynnewood, PA  was suspended from FINRA membership for violations of Rule 9552

FINRA Rule 9552. Failure to Provide Information or Keep Information Current

FINRA suspends Warren Rockmacher.

Warren Rockmacher, a registered representative from Trumbull, CT formerly with Investacorp was suspended from FINRA membership for violations of Rule 9552

FINRA Rule 9552. Failure to Provide Information or Keep Information Current

John Pemberton suspended.

John Pemberton, a registered representative from Overland Park, Kansas, formerly with Ameriprise Financial also of Overland Park was suspended from FINRA membership for violations of Rule 9552

FINRA Rule 9552. Failure to Provide Information or Keep Information Current

FINRA suspends Pedro Astacio.

Pedro Astacio, a registered representative from Orlando, FL formerly with Wells Fargo Advisors of Apopka, FL  was suspended from FINRA membership for violations of Rule 9552

FINRA Rule 9552. Failure to Provide Information or Keep Information Current

Finra suspends Kola Lulgjuraj.

Kola Lulgjuraj, a registered representative from Fishers, Indiana, formerly with J.P. Morgan Securities of Noblesville, IN  was suspended from FINRA membership for violations of Rule 9552

FINRA Rule 9552. Failure to Provide Information or Keep Information Current

Bingyi Hu suspended by FINRA.

Bingyi Hu, a registered representative from Miami, FL formerly with National Securities Corp. of Seattle, WA  was suspended from FINRA membership for violations of Rule 9552

FINRA Rule 9552. Failure to Provide Information or Keep Information Current