FINRA Issues Suspension To Larry Norton

Soreide Law Group is investigating possible investor claims against securities broker Larry Eugene Norton (also known as Larry Norton) (CRD: 1765551, Fresno, Texas). Evidently, FINRA sanctioned the securities broker, who worked for PFS Investments Inc. Allegedly, Norton engaged in private securities transactions. Here is a brief summary of FINRA’s allegations against Norton.

FINRA Suspends Larry Norton For Private Securities Transactions

Particularly, on April 3, 2023, FINRA issued Acceptance, Waiver, and Consent No. 2022074961401 sanctioning Larry Norton for infractions. Specifically, Norton was suspended for 30 days and fined $5,000. Evidently, FINRA alleged that Norton engaged in private securities transactions.

Norton's Investment In A Company

Namely, FINRA’s findings revealed that Norton personally invested around $138,000 in investment contracts offered by a company. Supposedly, this company claimed to be an invoice factoring company that provided cash to businesses in exchange for their accounts receivable.

Norton's Investment Approach

Evidently, to invest in this company, Norton entered into separate agreements called "Funding Partner" agreements. Under these agreements, he allegedly provided capital funding to the company with the expectation that the company would acquire accounts receivable exclusively for Norton's benefit. FINRA indicated that Norton anticipated generating returns of 12 to 25 percent on his investments.

Investments Outside Employment Scope

Notably, FINRA found that Norton's investments were not made through his employer, nor were they securities offered by his employer. Consequently, these investments were beyond the regular course of his employment with the firm. Supposedly, Norton failed to provide written notice to his employer prior to participating in the private securities transactions involving the company.

Misrepresentation On Compliance Questionnaires

Furthermore, FINRA indicated that on the firm's compliance questionnaires, Norton marked "N/A" in response to a question that specifically indicated marking "N/A" if one had not engaged in a private securities transaction and had no intention to do so.

PFS Investments Inc. Investor Accused Norton Of Unsuitable Recommendations

Also, a PFS Investments Inc. client filed NASD Arbitration: 02-4514 about Larry Norton. Namely, the client alleged that Norton made unsuitable recommendations. Because of this, the client allegedly sustained damages on variable annuities and mutual funds. Therefore, on May 21, 2003, PFS Investments Inc. settled this matter by paying the client $24,750 in damages.

Larry Norton Discloses Allegations By PFS Investments Inc. Client

Specifically, a client of PFS Investments Inc. contested Larry Norton’s sales practices, according to a complaint. Allegedly, the client was not apprised of fees and tax consequences. Supposedly, Norton caused the client to sustain damages on variable annuities and mutual funds. Therefore, PFS Investments Inc. opted to settle the matter on April 28, 2000, by compensating the client in the amount of $12,875.

Norton Employment Information

• Norton has worked for PFS Investments Inc. in Fresno, California as a securities broker since December 24, 1987.

Damages Resulting From PFS Investments Inc. Securities Larry Norton?

Did you suffer losses from investing with Larry Norton? If so, contact Soreide Law Group at (888) 760-6552 and speak with a securities attorney about a potential recovery of your losses. Soreide Law Group, who has successfully recovered money for hundreds of investors throughout the United States, represents clients on a contingency fee basis and advances all costs. Norton and brokerage firms Norton worked for deny any and all allegations of sales practice violations.