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Frank Capuano suspended by FINRA

In May, 2016, the Financial Industry Regulatory Authority (“FINRA”) announced that Frank Capuano of West Springfield, MA, formerly with Royal Alliance Associates, of Holyoke, MA was suspended from association with any FINRA member for twelve months and fined $10,000 as a result of his participation in a private offering of “note” securities of the Woodbridge Mortgage Investment Fund.  FINRA’s investigation centered on Capuano’s role in Woodbridge Mortgage Investment Fund’s sale of securities.  According to the findings, Capuano sold over $1,000,000 of the private notes to Royal Alliance customers and received over $30,000 in commissions.  Capuano did not seek or obtain permission from Royal Alliance prior to offering the Woodbridge Mortgage Investment Fund notes to his customers., which is a violation of FINRA rules.

Registration and disciplinary history

Jeffrey Borneman suspended

In May, 2016, the Financial Industry Regulatory Authority (“FINRA”) announced that Jeffrey Borneman of Los Angeles, CA, formerly with World Equity Group, Cambridge Investment Research and Concorde Investment Services, all of Los Angeles, was suspended from association with any FINRA member for thirty days and fined $5,000 as a result of his participation in a private offering of securities. FINRA’s investigation centered on the sale of shares in Borneman’s own LLC to a customer without his providing notice to his firm or obtaining the firm’s permission.

Registration and disciplinary history

Anthony Blackshear suspended

In May, 2016, the Financial Industry Regulatory Authority (“FINRA”) announced that Anthony Blackshear of San Antonio, TX, formerly with PFS Investments of San Antonio, TX was suspended from association with any FINRA member for two years  and fined $12,500 as a result of his misuse of customer funds entrusted to him. FINRA’s investigation centered on funds given to Blackshear by a customer which were not deposited into the customer’s account.  According to the findings of the AWC it was only later, after the customer complained that Blackshear addressed the situation.  Upon learning of this information the firm terminated him and repaid the customer.  The findings also indicated that Blackshear borrowed funds from another customer without notifying the firm or obtaining its approval

Registration and disciplinary history

World Equity Group fined.

In June, 2016, the Financial Industry Regulatory Authority (“FINRA”) announced that World Equity Group of Arlington Heights, Illinois submitted an acceptance, waiver and consent letter regarding supervisory lapses in its securities business. In agreeing to the AWC, the firm was fined $50,000.

FINRA’s allegations against the firm included that the firm failed to properly implement and maintain a supervisory system designed to detect and prevent unsuitable and excessive trading in stocks.  FINRA found that the firm’s supervisory system was not set up to detect “red flags” such as excessive turnover ratios and high cost to equity ratios.  The firm also did not properly analyze commissions or utilize exception to prevent and detect excessive trading in customer accounts.  As a result of these lapses in oversight the firm did not detect the unsuitable and excessive trading in a customer’s account.

FINRA fines PTX Securities

In June, 2016, the Financial Industry Regulatory Authority (“FINRA”) announced that PTX Securities of Plano, Texas submitted an acceptance, waiver and consent letter regarding due diligence violations in its securities business. In agreeing to the AWC, the firm was fined $20,000.

FINRA’s allegations included that the firm failed to properly investigate the background of the issuer of securities that were being sold through the firm in a private placement. FINRA found that the firm derived the majority of its revenue acting as a placement agent for this issuer, and failed to inquire into the impact that a money judgment would have against the issuer during the due diligence process.

CP Capital Securities Fined by FINRA

In June, 2016, the Financial Industry Regulatory Authority (“FINRA”) announced that CP Capital Securities of Miami, Florida submitted an acceptance, waiver and consent letter regarding supervisory lapses in its securities business. In agreeing to the AWC, the firm was fined $70,000.

FINRA’s allegations against CP Capital included that the firm failed to supervise the offering of a private placement of securities of senior secured notes of a Columbian energy company. FINRA contended that the firm did not properly document and review the investment questionnaires used to determine eligibility and exemptions to participate in the private placement of the senior secured notes.  In agreeing to the sanction the firm agreed to retain an independent consultant to review the firm’s written supervisory procedures.

In May, 2016, the Financial Industry Regulatory Authority (“FINRA”) announced that Chris Tolmacs of Scotts, Michigan, formerly with Triad Advisors of Portage, MI was barred from association with any FINRA member as a result of his refusal to cooperate with FINRA’s investigation as to whether he engaged in private securities transactions with his customers.  The investigation concerned the issuance of promissory notes to memorialize loan transactions.  Chris Tolmacs initially cooperated with FINRA, but then refused to appear for the continuation of his examination, and refused to provide FINRA with information to aid in their investigation.

Chris Tolmac’s registration and disciplinary history

In order to lawfully sell investments to the public,  a registered rep must either be registered or exempt from registration.  Chris Tolmacs was registered with Triad Advisors from April 2008 through March, 2016.

In May, 2016, the Financial Industry Regulatory Authority (“FINRA”) announced that John Shockey of Shreveport, LA, formerly with Merrill Lynch, J.P. Turner and Summit Brokerage Services, all out of Shreveport, LA was suspended from association with any FINRA member for one year and ordered to pay $70,000.  Shockey submitted to findings that he engaged in private securities transactions with members of the firm by selling some of his own personal shares and directing clients to the third party seller of securities.  The total dollar amount of the shares sold that were attributed to Shockey is over $630,000.   According to FINRA, the transactions were in shares of Miami International Holdings, Inc., parent company of the MIAX Options Exchange.  According to the regulatory complaint, the sale of the Miami International Holdings securities constituted a violation of the registration provision of the federal securities laws as no registration statement had been filed, and no exemptions applied to the transactions.

John Shockey’s registration and disciplinary history

In order to lawfully sell investments to the public,  a registered rep must either be registered or exempt from registration.  John Shockey was registered with:

In May, 2016, the Financial Industry Regulatory Authority (“FINRA”) announced that Tom Schober of Rumson, NJ, formerly with SII Investments of Westborough, MA was barred from association with any FINRA member.  Schober submitted to findings that he made unsuitable annuity exchanges on behalf of elderly customers.  These exchanges resulted in over $150,000 in surrender penalties to the customers and netted Schober over $50,000 in commissions.  Schober never disclosed the surrender charges to the customers, and he also took steps to hide the basis for the exchanges from his firm and from the annuity companies.

Tom Schober’s registration and disciplinary history

In order to lawfully sell investments to the public,  a registered rep must either be registered or exempt from registration.  Tom Schober was registered with SII Investments from June, 2007 Through January, 2015.

In May, 2016, the Financial Industry Regulatory Authority (“FINRA”) announced that Harold Joe Petro of Greenwood, Indiana, formerly with Merrill Lynch of Indianapolis, Indiana was suspended from association with any FINRA member for six months and fined $15,000.  Petro submitted to findings that he made multiple trades in client accounts without obtaining written authorization as required by the firm.  Petro solicited shares in the firm’s parent company and marked the tickets as unsolicited when in fact he had solicited the trades.  As a result, he caused the firm’s books and records to inaccurately reflect the nature of the transactions, a violation of FINRA rules.

Harold Joe Petro’s registration and disciplinary history

In order to lawfully sell investments to the public,  a registered rep must either be registered or exempt from registration.  Harold Joe Petro was registered with Merrill Lynch from 1979 through March, 2014.