Articles Posted in Disciplinary Actions

FINRA bars Tracy wengert.

In December, 2015, the Financial Industry Regulatory Authority (“FINRA”) announced that Tracy Wengert of Lakeside, AZ formerly with Transamerica Financial and World Group Securities, both of Mesa, AZ  submitted an acceptance, waiver and consent letter whereby he was barred from association with any FINRA member in any capacity. The 2015 FINRA complaint alleged that Wengert opened accounts outside his broker dealer and made unsuitable transactions for the customers in these accounts.  After FINRA opened its investigation, it asked Wengert to provide inflation in furtherance of the investigation, but Wengert refused to provide documents to FINRA.  .

Registration and disciplinary history

Karen Tautges Parisian suspended by FINRA.

In December, 2015, the Financial Industry Regulatory Authority (“FINRA”) announced that Karen Tautges-Parisian of Minnetonka, MN formerly with Ameriprise Financial Services of New Prague, MN submitted an acceptance, waiver and consent letter whereby she was suspended from association with any FINRA member in any capacity for nine months and fined $5,000. The 2014 FINRA complaint alleged that Tautges-Parisian made unsuitable recommendations to a customer to participate in penny stock transactions.  FINRA found the transactions represented an overconcentration of the customer’s assets in risky securities, and that the customer was not in a position to bear the loss of such an investment.

Registration and disciplinary history

David Scholl suspended by FINRA.

In December, 2015, the Financial Industry Regulatory Authority (“FINRA”) announced that David Scholl of Caledonia, MI formerly with Planmember Securities of Grand Rapids, MI submitted an acceptance, waiver and consent letter whereby he was suspended from association with any FINRA member in any capacity for three months and fined $5,000. The 2013 FINRA complaint alleged that Scholl participated in an unapproved private securities transaction with Mackinac Realty Group.  Scholl did not get permission from his broker dealer prior to assisting a client invest over $240,000 in the venture, under which Scholl received a $7,000 commission. Ultimately Mackinac defaulted on their promissory note to the investor

Registration and disciplinary history

Michael Duch suspended by FINRA.

In December, 2015, the Financial Industry Regulatory Authority (“FINRA”) announced that Michael Duch of Aberdeen, South Dakota with Kovack Securities of Aberdeen, SD  submitted an acceptance, waiver and consent letter whereby he was suspended from association with any FINRA member in any capacity for twenty days and fined $15,000. The FINRA complaint alleged that Duch participated in unapproved outside business activities whereby he facilitated an investment into an oil and gas securities transaction, as well as an investment into an unregistered promissory note investment.  These private securities transactions were not approved by Duch’s broker dealer.

Registration and disciplinary history

FINRA bars Randy Burke.

In December, 2015, the Financial Industry Regulatory Authority (“FINRA”) announced that Randy Burke of Ferguson, North Carolina formerly with Calton and Associates and Capital Investment Group, both of Hickory, NC  submitted an acceptance, waiver and consent letter whereby he was barred from association with any FINRA member in any capacity. The FINRA complaint alleged that Burke participated in an unapproved outside business activity whereby he solicited clients to invest in his business venture known as Lodge Alaska.  These private securities transactions were not approved by Burke’s broker dealer.  FINRA also found that Burke made material misrepresentations to an elderly purchaser of the Lodge Alaska transaction, and improperly used the funds the client invested in the deal.

Registration and disciplinary history

Maxwell SImon fined by FINRA.

In December, 2015, the Financial Industry Regulatory Authority (“FINRA”) announced that Maxwell Simon of Minneapolis, MN submitted an acceptance, waiver and consent letter regarding its failure to supervise its registered representatives in their sales of unregistered microcap securities. In agreeing to the AWC, the firm was fined $20,000.

FINRA’s allegations against Maxwell Simon concerned micro-cap securities sales.  FINRA found that the firm failed to properly investigate the sales, failed to respond to red flags concerning the transactions and failed to establish, maintain and enforce an effective system of reviewing the transactions to ensure that the transactions were in compliance with the securities laws, in particular Rule 144.

Geneos Wealth Management fined by FINRA.

In December, 2015, the Financial Industry Regulatory Authority (“FINRA”) announced that Geneos Wealth Management of Centennial, CO submitted an acceptance, waiver and consent letter regarding its failure to supervise its registered representatives in their sales of limited partnership interests to customers. In agreeing to the AWC, the firm was fined $12,500.

FINRA’s allegations against Geneos Wealth Management concerned reps whose outside business activities included the sales of limited partnership units.  FINRA found that the reps met with, discussed and provided clients with information on the limited partnership interests, including providing customers with private placement memorandums, and receiving compensation, but the firm failed to record the transactions on their books and maintain them in their records.

Capital Securities Management fined $470,000.

In December, 2015, the Financial Industry Regulatory Authority (“FINRA”) announced that Capital Securities Management of Glen Allen, Virginia submitted an acceptance, waiver and consent letter regarding its sales of four million dollars of reverse convertible notes (RCNs) to its clients, and the firm’s failure to effectively implement a reasonable supervisory system designed to achieve compliance with the securities laws. In agreeing to the AWC, the firm was fined $470,000 and ordered to pay over two hundred thousand dollars in restitution.

FINRA’s allegations against Capital Securities Management concerned the sales of RCNs, and the over concentration of RCNs in customer accounts.  FINRA found the firm failed to establish, maintain and enforce a reasonable supervisory system to address the sale of RCNs to its customers, and to prevent over concentration.  FINRA also criticized the firm for its anti-money laundering program which failed to detect suspicious activity regarding the deposit and sale of low priced securities through the firm.

Daniel Crowley suspended by FINRA.

Daniel Crowley, a registered representative from New Canaan, CT, formerly with Rochdale Securities of Stamford, CT was suspended from FINRA membership for violations of Rule 9554.

FINRA Rule 9554. Failure to Comply with an Arbitration Award or Related Settlement or an Order of Restitution or Settlement Providing for Restitution

FINRA suspends J.R. Gladden a year.

In July, 2016, the Financial Industry Regulatory Authority (“FINRA”) announced that J.R. Gladden of La Mesa, California formerly with Securities Equity Group of El Cajon, CA  submitted an acceptance, waiver and consent letter whereby he was suspended from association with any FINRA member in any capacity for one year and fined $15,000. The FINRA complaint alleged that Gladden participated in an unapproved outside business activity whereby created two funds designed to raise money to make loans to churches.  Gladden solicited over two million dollars of investments for the ventures, but failed to inform his broker dealer of his fund raising activities.

Registration and disciplinary history