Articles Posted in Uncategorized

FINRA suspends Charles Laverty.

In February, 2016, the Financial Industry Regulatory Authority (“FINRA”) announced that Charles Laverty of Newport Beach, CA, formerly with Oppenheimer and Co. and Calton & Associates submitted an acceptance, waiver and consent letter whereby he was suspended from association with any FINRA member in any capacity for eighteen months. The FINRA complaint alleged that Laverty borrowed over one million dollars from his customers  without obtaining permission from his firm.  One of the loans remains outstanding. FINRA also found that Laverty failed to report the loans on his annual compliance questionnaires.

Registration and disciplinary history

Finra bars Rick Esparza

In February, 2016, the Financial Industry Regulatory Authority (“FINRA”) announced that Rick Esparza of Rancho Murieta, CA, formerly with Princor Financial Services of Rancho Murieta, CA 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 Esparza failed to cooperate with FINRA during its investigation into whether Esparza borrowed money from a firm customer, a violation of firm policy and FINRA rules.

Registration and disciplinary history

Larry Crabtree suspended.

In February, 2016, the Financial Industry Regulatory Authority (“FINRA”) announced that Larry Crabtree of Edmund, OK, of Wilbanks Securities of Edmund, OK submitted an acceptance, waiver and consent letter whereby he was suspended from association with any FINRA member in any capacity for a period of six months. The FINRA complaint alleged that Crabtree made unsuitable investments in a customer’s IRA and that he improperly exercised discretion in the account without obtaining written approval to do so.

Registration and disciplinary history

Lincoln Financial fined by FINRA.

In February, 2016, the Financial Industry Regulatory Authority (“FINRA”) announced that Lincoln Financial Advisors of Ft. Wayne, Indiana submitted an acceptance, waiver and consent letter regarding its failure to effectively implement a reasonable penny stock supervisory system designed to achieve compliance with the securities laws. In agreeing to the AWC, the firm was fined $90,000.

FINRA’s allegations against Lincoln Financial Advisors concerned a registered rep who made a series of penny stock transactions in amounts under $5,000.  By structuring the transactions in such small increments, the rep was able to evade detection by management. FINRA’s allegations concerned the firm’s failure to act on the numerous penny stock transactions submitted by the rep, and the failure to put the pieces together to see that the rep was structuring the transactions to evade detection by the firm.

Liberty Associates fined.

In February, 2016, the Financial Industry Regulatory Authority (“FINRA”) announced that Liberty Associates New York, NY submitted an acceptance, waiver and consent letter regarding its 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 $3,500.

FINRA’s allegations against Liberty Associates concerned a registered rep working out of its New Mexico office who was engaged in the sale of private placements.  FINRA’s allegations concerned the firm’s failure to conduct due diligence into the offerings, and the failure to determine whether the investors in the private placements were accredited investors.  FINRA also took issue with the firm’s failure to retain emails.

Finance 500 fined $500,000.

In February, 2016, the Financial Industry Regulatory Authority (“FINRA”) announced that Finance 500 of Irvine, CA submitted an acceptance, waiver and consent letter regarding its failure to effectively implement an anti-money laundering compliance program into its securities business. In agreeing to the AWC, the firm was fined $500,000.

FINRA’s allegations against Finance 500 concerned its participation in the trading of low priced securities.  The firm did not implement a supervisory system designed to identify red flags in the trading of low priced securities, which allowed registered reps to open accounts without properly identifying the account holder’s information.  The findings also criticized Finance 500 and its CEO Robert Hicks for failures in its market making activities in low priced securities, sales of unregistered securities, and its failure to review and retain email communications.

Robert Dull suspended.

Robert Dull, a registered representative formerly with Suntrust Investment Services and Securities America 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

Woodley Bagwell suspended.

Woodley Bagwell, a registered representative formerly with Morgan Keegan and Raymond James, both of Birmingham, AL 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

Eric Kuchel barred.

In March, 2016, the Financial Industry Regulatory Authority (“FINRA”) announced that Eric Kuchel of Yorba Linda, CA, formerly with Crown Capital Securities and LPL Financial, both of Brea, CA was named in a FINRA complaint alleging that he repeatedly failed to appear for on the record testimony over allegations that he and other registered representatives engaged in improper mutual fund transactions and participated in a private securities transaction.  A FINRA hearing officer’s panel entered default against Kuchel in May, 2016, barring him from the industry for refusing to cooperate with FINRA’s investigation

Registration and disciplinary history

Aon Miller suspended by FINRA.

In March, 2016, the Financial Industry Regulatory Authority (“FINRA”) announced that Aon Miller of Chattanooga, TN, formerly with Benjamin F. Edwards and Purshe Kaplan Sterling, both of Chattanooga, was suspended from association with any FINRA member in any capacity for two years and fined $50,000 as a result of findings that he participated in several private securities transactions.  The decision issued by the FINRA hearing officers is presently on appeal.  The findings in the decision identified Chestnut Development Partners, City Title Loan and KB International as the companies/securities at issue.  The findings state that Miller participated in the private securities transactions totaling over one and half million dollars without obtaining the proper authorization from his firm Benjamin F. Edwards.

Registration and disciplinary history