he Pompano Beach, Florida-based Soreide Law Group obtained the following on FINRA’s website under, “Disciplinary and Other FINRA Actions March 2016:”
Robert E. Richards (CRD #2663610, Boynton Beach, Florida) Alternate Names: ROB RICHARDS
was assessed a deferred fine of $25,000, suspended by FINRA for two years and required to requalify as a General Securities Principal by passing the Series 24 examination prior to association with any FINRA member in that capacity following the two-year suspension. Roberts has neither confirmed nor denied the allegations.
According to FINRA’s findings, Richards aided and abetted the price manipulation of penny stocks by brokers at other FINRA member firms. The findings stated that allegedly Richards made trades in two companies’ securities, and that he was reckless in failing to recognize that his actions were part of an overall course of conduct that was illegal or improper and in failing to inquire sufficiently into whether the trades were part of such a course of conduct.
FINRA’s findings also stated that Robert E. Richards, as a supervisor for a branch, did not implement the firm’s AML compliance system. As a result, Richards was either unaware of, or chose to ignore, numerous red flags related to his branch’s market-making activity and the retail trading activity of its clients. When Richards became aware of red flags, he failed to perform additional due diligence or report the suspicious activity to the firm’s AML compliance officer. Richards allegedly executed suspicious trades in those companies’ securities without making further inquiry, and failed to report the activity to the firm’s AMLCO.
FINRA’s findings also included that Richards failed to properly supervise the firm’s branch that engaged in high-risk activity, trading and liquidation of low-priced securities. Richards approved new accounts for individuals with criminal and regulatory backgrounds who subsequently engaged in suspicious trading.
Richards repeatedly approved new customer accounts and the deposit of low-priced securities without ensuring adequate searching inquiry was conducted, despite evidence that the accounts were to hold recently obtained physical certificates for which there was incomplete documentation as to how and when the client acquired the shares.
The suspension is in effect from January 19, 2016, through January 18, 2018.
(FINRA Case #2013036837803)
Rob Richards was in the securities industry for 19 years and was registered with the following firms:
07/2014 – 04/2015 MONARCH BAY SECURITIES, LLC – EL SEGUNDO, CA
02/2005 – 07/2014 FINANCE 500, INC. – DELRAY BEACH, FL
01/2004 – 02/2005 MARLINS CAPITAL, LLC – BOCA RATON, FL
01/2000 – 01/2004 FORGE FINANCIAL GROUP, INC. – BOCA RATON, FL
If you have suffered losses due to the recommendations of your broker/financial advisor, call the Florida-based Soreide Law Group for a free consultation with an attorney on the possibility of recovering your investment losses at: 888-760-6552.