December 11, 2018

FINRA Bars TCFG Broker Charles Acheson Laverty From Securities Industry

FINRA Bars TCFG Broker Charles Acheson Laverty From Securities Industry

Charles Acheson Laverty (CRD#: 4875386, Newport Beach, California) is a former TCFG Wealth Management LLC securities representative who is now barred from the securities industry by the Financial Industry Regulatory Authority (FINRA) pursuant to Hearing Panel Decision #2016050205901 dated November 13, 2018.  The Hearing Panel found that Laverty borrowed $1,350,000.00 from customers without informing, and obtaining approval from, TCFG and his prior employers. Additionally, Laverty was found to have falsified his compliance questionnaires and provided false testimony to FINRA.

Charles Acheson Laverty Borrowed $1,350,000.00 From Customers Without Permission

The Decision reported that Laverty borrowed money from an elderly couple, RO and AO, during the times that Laverty was working for UBS Financial Services Inc. (2010 to 2011), Oppenheimer & Co. Inc. (2011 to 2014), Calton & Associates, Inc. (2014 to 2015) and TCFG Wealth Management, LLC (2015). Supposedly, RO and AO were seniors in bad health – RO had kidney failure and degenerative eye disease. Laverty apparently inserted himself into those customers’ lives, steering them towards providing Laverty eight loans which totaled $1,350,000.00 over the course of four years. Evidently, Laverty has paid back no more than $18,000.00 of the $1,350,000.00 that he borrowed.
The Decision reported that FINRA and brokerage firms have established conditions on brokers taking loans from customers, or vice versa, because of the concern for misconduct by brokers. In this case, Laverty’s employers did not allow him and other securities representatives to borrow from any of its customers. As a result, those firms did not approve of his transactions.

Charles Acheson Laverty Concealed Loans From Employers And FINRA

Evidently, Laverty did not let his employers know about customers loaning him money until 2015 – five years after RO and AO lent him the funds. Notably, FINRA’s Hearing Panel stated that if Laverty asked his employers to borrow money from RO and AO, his request would have been denied. Had that happened, RO and AO would not have suffered losses, according to the Decision. Because of this, FINRA’s Hearing Panel found that Laverty violated FINRA Rules 2340 and 2010.
Additionally, the Decision reported that Laverty falsified Oppenheimer’s and Calton’s compliance questionnaires. Evidently, Laverty attested that he did not borrow from customers. As it turns out, his attestations were untrue. FINRA’s Hearing Panel found that Laverty’s failure to tell the truth about borrowing from RO and AO was a violation of FINRA Rule 2010. Laverty did not just falsify his attestations though – he also lied to FINRA when FINRA investigated him. Namely, Laverty gave false testimony to FINRA about borrowing from RO and AO. Therefore, the Hearing Panel stated that Laverty violated FINRA Rules 8210 and 2010.
FINRA’s Hearing Panel barred Laverty from the securities industry for his misconduct.

Charles Acheson Laverty Subject Of Customer Complaints

According to Laverty’s FINRA BrokerCheck Report, several customers have filed arbitration actions in alleging that Laverty engaged in sales practice violations:

October 23, 2018 Arbitration

 
Oppenheimer & Co. Inc. customers brought FINRA Arbitration #18-03610 on October 17, 2018 in regard to Laverty’s misconduct. Customers’ causes of action included churning, breach of fiduciary duty, fraud, elder abuse, non-disclosures, misrepresentation, failure to diversify, unsuitability, unauthorized trading, over-concentration, and negligence. Apparently, the claims related to the customers’ master limited partnership, exchange traded fund, closed end fund and mutual fund trades. Customers have not specified the damages they seek in this matter. The matter is pending a resolution.

May 16, 2016 Arbitration

 
Calton & Associates customers brought FINRA Arbitration #16-01270 on May 16, 2016. The customers claimed that between 2008 and 2016, Laverty made unsuitable trades in their accounts. Laverty was also accused of financially abusing the customers and committing fraud. Apparently, Laverty set forth an unreasonable and unsuitable strategy for investments. Furthermore, the customers claimed that Laverty solicited loans from them – a prohibited act. All things considered, on June 6, 2017, Calton & Associates settled the customers’ claim for $125,000.00 in damages.

November 3, 2014 Arbitration

 
Customers of UBS Financial Services, Inc. and Oppenheimer & Co. Inc. brought FINRA Arbitration #14-03220 on November 3, 2014. First, they claimed that Laverty made bad investment recommendations. Second, the customers contended that Laverty misrepresented the risks of the investments that customers’ purchased. Third, Laverty allegedly solicited personal loans from the customers even though this was prohibited. Fourth, customers claimed to have been victim to Laverty’s fraudulent activities. The Arbitration Panel found Laverty liable. As a result, the Arbitration Panel ordered Laverty to pay the customers $1,369,320.00 in compensatory damages.

Lars Soreide Highest Ethical Standard Award 2018
Lars Soreide Highest Ethical Standard Award 2018

If you experienced losses from Charles Acheson Laverty or another broker, contact Soreide Law Group at (888) 760-6552 and speak with our qualified counsel about a possible recovery of your losses. Soreide Law Group represents clients nationwide and only charges a fee upon recovery of losses.

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