ERIN VERESPY Of Trumbull CT Barred By FINRA

FINRA Expels HD Vest’s ERIN VERESPY For Declining To Testify About Misappropriation Allegations

FINRA announced it has barred HD Vest Investment Services broker Erin Verespy (CRD#: 2727866, Trumbull, Connecticut). Verespy worked at HD Vest Investment Services from August 19, 1998 to March 27, 2019. Evidently, she submitted a Letter of Acceptance, Waiver and Consent (“AWC”) #2018058108001 on April 9, 2019, which FINRA accepted April 15, 2019. Principally, FINRA stated that Verespy failed to testify in an investigation it brought concerning a client’s allegations of Verespy misappropriating funds. Notably, FINRA stated that Verespy violated FINRA Rules 8210 and 2010. Here is a summary of the AWC:

FINRA Launches Investigation Into Client Complaint Alleging Erin Verespy’s Misappropriation

First, FINRA has rights under Rule 8210 to inspect a stockbroker’s documents and information relating to its investigation into the stockbroker. Also, FINRA Rule 8210(c) mandates the stockbroker’s compliance with FINRA’s requests for testimony, among other things. So when FINRA asks for the stockbroker’s information pursuant to Rule 8210, the broker must provide it. Otherwise, FINRA could find the stockbroker in violation of Rules 8210 and 2010.
FINRA stated that on April 6, 2018, Erin Verespy disclosed that a client named her as a defendant in a civil, investment-related action. FINRA mentioned that in the civil matter, the client claimed that Verespy not only misused the client’s funds, but misappropriated them as well. The customer claimed that Verespy’s misappropriation took place while Verespy was an HD Vest Investment Services financial advisor.
Eventually, Erin Verespy settled the client’s dispute; however, Verespy’s problems did not stop there. Apparently, FINRA used its authority under Rule 8210 to require that Verespy testify about her involvement with the client. However, Verespy did not want to participate. Indeed, between March 11, 2019 and March 13, 2019, Verespy’s attorney indicated to FINRA that Verespy would not appear on April 5, 2019 – the date set aside for her testimony. Verespy’s submission of the AWC also solidified the stockbroker’s decision to not cooperate with FINRA’s testimony request. For this reason, FINRA stated that Verespy violated FINRA Rules 8210 and 2010.

Client’s Civil Action Alleging Erin Verespy’s Misappropriation Settles For $1,000,000

FINRA BrokerCheck shows that multiple claimants came together in filing lawsuit #FBT-CV18-5035610-S on January 28, 2018. The civil action, filed in the State of Connecticut Superior Court, makes allegations of Verespy’s misuse and misappropriation of the client’s funds. Supposedly, Verespy misappropriated the client’s funds while acting in the capacity of the client’s advisor and bookkeeper. All things considered, HD Vest Investment Services agreed on January 16, 2019 to pay the client $1,000,000 to resolve the misappropriation allegations. Notably, Verespy personally contributed $500,000 towards the settlement of the matter.
As of April 15, 2019, Verespy is no longer allowed to act as a broker or associate with a broker-dealer, according to FINRA.

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