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TAG | broker not getting written authority to trade

May/12

16

Ft. Lauderdale Rep Barred by FINRA

Comments off · Posted by Securities Lawyer in FINRA

The following information is from FINRA’s website under, “Disciplinary and Other FINRA Actions, May, 2012.”

Sean Donald Premock (CRD #3175558, Registered Representative, Fort Lauderdale, Florida)
 
submitted a Letter of Acceptance, Waiver and Consent in which he was barred from association with any FINRA member in any capacity. Without admitting or denying the findings, Premock consented to the described sanction and to the entry of findings that he facilitated private securities transactions away from his member firm.
 
These findings stated that Premock was paid commissions from the sales totaling $18,820 without providing written notice to, or obtaining approval from, his firm prior to facilitating any of the investments.
 
The findings also stated that Premock made a series of material misrepresentations and omissions of fact in connection with the offering and selling of investment notes, including promising a monthly minimum rate of return, claiming that the investors’ principal was safe and would be repaid in its entirety after a period ranging from nine to 12 months, and representing that investor funds would be pooled and invested in a fund for the purpose of executing a unique trading strategy that would protect investor  principal by employing a hedging strategy using reversible convertible notes (RCNs).
 
While Premock opened trading accounts in the name of the fund and conducted securities, futures and options trading with the fund’s investor money, investors were not paid a monthly rate of return, certain investors did not receive their principal at maturity, Premock did not purchase RCNs, and he used some of the investment funds for his personal benefit.
 
These findings also included that Premock prepared and issued monthly and quarterly fund statements that showed inflated account values. The statements uniformly showed steady account appreciation based on the accrual of fictitious monthly interest and cash bonuses.
 
FINRA found that Premock received a total of $32,000 from investors for investments in the fund and deposited these funds in the business checking account of a non-fund entity. None of the $32,000 from investors was transferred to any account belonging to the fund. Instead, Premock made several cash withdrawals, purchased several personal items, transferred funds to one family member, and transferred funds to his personal trading account.
 
FINRA also found that Premock received $20,000 from an investor for an investment in the fund and deposited this money in the fund’s checking account. Premock transferred $59,382.50 from one of the fund trading accounts to the fund’s checking account. That same day, a $79,422.45 transfer was made from the fund’s checking account to Premock’s business partner. The fund account balance was $39.95 and was closed soon thereafter. The investors were unaware of these uses of their money and did not authorize or consent to such uses.
 
In addition, FINRA determined that Premock failed to fully respond to FINRA requests for information and documents. Premock stated that he was unwilling to provide a response to all of the requested items and that he intended not to comply any further. (FINRA Case #2010024048601)
 

This ends the information from FINRA’s website.

Securities Lawyer, Lars K. Soreide, of Soreide Law Group, PLLC, has represented clients nationwide.
For a free consultation with an attorney, please call 888-760-6552, or visit our website at: www.securitieslawyer.com.

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Mar/12

1

Palm Beach Gardens, FL, Rep Fined and Suspended by FINRA

Comments off · Posted by Securities Lawyer in FINRA

The following information was obtained on FINRA’s website’s ‘Disciplinary Actions, February 2012.”
 
Olaf F. Gamlen (CRD #5292529, Registered Representative, Palm Beach Gardens, Florida)
 
submitted a Letter of Acceptance, Waiver and Consent in which he was fined $5,000 and
suspended from association with any FINRA member in any capacity for 10 business days. The fine must be paid either immediately upon Gamlen’s reassociation with a FINRA member firm following his suspension, or prior to the filing of any application or request for relief from any statutory disqualification, whichever is earlier.
 
Without admitting or denying the findings, Gamlen consented to the described sanctions and to the entry of findings that he exercised discretion in a customer’s nondiscretionary advisory accounts.
 
These findings stated that although the customer had given Gamlen oral authorization to
use discretion in his accounts to effect securities transactions, Gamlen did not obtain
the customer’s prior written authorization. The findings also stated that at no time did
Gamlen’s member firm permit discretion to be utilized in the types of advisory accounts
the customer held.
 
The suspension was in effect from December 19, 2011, through January 3, 2012. (FINRA Case #2010024494001)
 
The information from FINRA’s website has ended.
 
Securities Lawyer, Lars K. Soreide, of Soreide Law Group, PLLC, has represented clients nationwide. For a free consultation with an attorney, please call 888-760-6552, or visit our website at: www.securitieslawyer.com.

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Feb/12

28

Florida Rep Fined and Suspended by FINRA

Comments off · Posted by Securities Lawyer in FINRA

The following information was obtained on FINRA’s website’s ‘Disciplinary Actions, February 2012.”
 
Charles Rainsford Marks Jr. (CRD #4727907, Registered Representative, South Jacksonville, Florida)
 
submitted a Letter of Acceptance, Waiver and Consent in which he was fined
$5,000 and suspended from association with any FINRA member in any capacity for 10 business days. The fine must be paid either immediately upon Marks’ reassociation with a FINRA member firm following his suspension, or prior to the filing of any application or request for relief from any statutory disqualification, whichever is earlier.
 
Without admitting or denying the findings, Marks consented to the described sanctions and to the entry of findings that he exercised discretion in the accounts of customers who had authorized him to use discretion, but without their written authorization and without his member firm’s acceptance, in writing or otherwise, of the accounts as being discretionary.
 
These findings stated that Marks exercised discretion in a customer’s accounts without written authorization by executing a number of trades without first contacting the customer and without his firm’s prior approval. The findings also stated that Marks exercised discretion in another customer’s accounts by selling shares in several mutual funds valued at approximately $10,000 and reinvesting the proceeds in various stocks, without the customer’s written authorization and without his firm’s prior approval. The suspension was in effect from December 19, 2011, through January 3, 2012.
(FINRA Case #2010021318501)
 
The information from FINRA’s website has ended.
 
Securities Lawyer, Lars K. Soreide, of Soreide Law Group, PLLC, has represented clients nationwide. For a free consultation with an attorney, please call 888-760-6552, or visit our website at:  www.securitieslawyer.com.

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