Florida Broker Barred and Fined by FINRA for Alleged Conversion of Employer's Funds

The following summation of information from FINRA's Website under "Disciplinary and Other Actions, January, 2015," was obtained by the Florida-based Soreide Law Group (888) 760-6552 .

Alfred Pierrepont Reeves III (CRD #372836, Hallandale, Florida)

was barred by FINRA and ordered to pay $28,704.93, plus prejudgment interest, in restitution to his former employer. The NAC affirmed the findings and sanctions imposed by the Office of Hearing Officers (OHO) decision. The sanctions were based on findings that Reeves converted his former employer firm’s funds.

FINRA's findings stated that Reeves, who served as the firm’s Financial and Operations Principal (FINOP), was listed as his employer firm’s authorized billing contact with the firm’s clearing firm. After Reeves’ contract with the firm was terminated, a proprietary trade was made in the firm president’s IRA account. The clearing firm withheld a total of $59,704.93 on commission on these trades, which it reported on the firm’s statement of clearing charges. After his termination, Reeves was still listed as the authorized billing contact and directed the clearing firm to pay the commissions to Reeves’ consulting company because it had not been notified that he was no longer at the firm and should be removed as the designated billing contact. After learning that the transfer was complete, Reeves began withdrawing money from the account, transferring money to his ex-wife’s account and paying personal expenses, without contacting the clearing firm or his former firm to clarify the source or purpose of the transfer. After the firm’s president accused Reeves of stealing the money, Reeves offered to repay the clearing firm on the conditions that it admit that it had misappropriated the firm’s funds and paid them to Reeves in error, and that he would not make any payments until he resolved all issues with FINRA. Reeves eventually repaid $31,000 to the clearing firm and admitted he had not repaid the balance.

This matter has been appealed to the SEC and the bar is in effect pending the review. (FINRA Case #2011030192201)

Alfred Pierrepont Reeves III was registered in the securities industry for 37 years and was previously registered with the following securities firm(s):

03/2011 - 12/2011 CONVERGENT SECURITIES, LLC (CRD# 151959) - MIAMI, FL

01/2011 - 08/2011 HWJ CAPITAL PARTNERS II, LLC (CRD# 132135) - BOCA RATON, FL

05/2008 - 02/2011 EUROPA SECURITIES, LLC (CRD# 28493) - DENVER, CO
FINRA expelled the firm in 06/2011
04/2001 - 12/2010 AFFILIATED FUNDING CORP. (CRD# 104256) - DENVER, CO

06/2007 - 10/2007 MISSION SECURITIES CORPORATION (CRD# 41779) - SAN DIEGO, CA
FINRA expelled the firm in 02/2010
04/2001 - 01/2007 FARRAND INVESTMENT BANKERS (CRD# 105785) - MONTVILLE, NJ

10/2005 - 02/2006 STG SECURE TRADING GROUP, INC. (CRD# 41216) - BOCA RATON, FL
FINRA expelled the firm in 10/2007
07/2005 - 09/2005 SALIX CAPITAL SECURITIES CORP. (CRD# 129586) - FORT LAUDERDALE, FL

02/2004 - 08/2004 DELTA ASSET MANAGEMENT COMPANY, LLC (CRD# 39923) - MINEOLA, NY
FINRA expelled the firm in 11/2005
02/2002 - 03/2002 VERTICAL CAPITAL PARTNERS, INC. (CRD# 35909) - NEW YORK, NY
FINRA expelled the firm in 10/2008
05/2001 - 11/2001 EMERSON BENNETT & ASSOCIATES (CRD# 36171) - FT. LAUDERDALE, FL
FINRA expelled the firm in 05/2002
01/2001 - 06/2001 ANDOVER BROKERAGE, L.L.C. (CRD# 33848) - MONTEBELLO, NY

07/1998 - 11/2000 PREFERRED SECURITIES GROUP, INC. (CRD# 35704) - BOCA RATON, FL

09/1997 - 06/1998 EQUITYLINE SECURITIES, INC. (CRD# 14853)
04/1996 - 02/1998 MEYERS POLLOCK ROBBINS, INC. (CRD# 13436) - NEW YORK, NY
FINRA expelled the firm in 08/2001
08/1991 - 03/1996 INVESTORS ASSOCIATES, INC. (CRD# 958) - HACKENSACK, NJ
FINRA expelled the firm in 05/1998
03/1990 - 03/1992 HASAN GROWNEY CO. INC. (CRD# 17137) FINRA expelled the firm in 11/1992
11/1990 - 02/1991 TEXAS SECURITIES, INC. (CRD# 7655) - FT. WORTH, TX

03/1989 - 12/1989 J F LOWE & COMPANY INCORPORATED (CRD# 11830)

This summation ends here.

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