LAWRENCE FAWCETT Barred From Securities Industry

The Financial Industry Regulatory Authority (“FINRA”) barred WestPark Capital Inc. securities broker Lawrence Fawcett (CRD#: 5851474, Los Angeles, California). Evidently, Fawcett executed a Letter of Acceptance, Waiver, and Consent (“AWC”) #: 2017056329801 on March 13, 2018, which FINRA accepted March 26, 2018. FINRA determined that Fawcett violated FINRA Rules 8210 and 2010 by refusing to produce documents or testify in a FINRA investigation.

FINRA Bars Lawrence Fawcett For Refusing To Comply With FINRA’s Investigation

Apparently, FINRA’s investigation concerned Fawcett’s outside business activities. Potentially, Fawcett engaged in outside business without disclosing them to his employer. Seemingly, FINRA learned of Fawcett’s alleged outside business activities from WestPark Capital Inc. Indeed, the firm discharged Fawcett for that reason.

FINRA wanted Fawcett to testify on March 5, 2018. Additionally, FINRA asked Fawcett to hand over documents and information by March 2, 2018. However, Fawcett did not comply with either of FINRA’s requests because he failed to comply by the deadlines. Later, Fawcett’s legal counsel responded to FINRA regarding Fawcett’s lack of cooperation. Critically, Fawcett acknowledged that he would not give FINRA any information about the alleged outside business activities, nor would he testify.

FINRA Fines, Suspends Fawcett For Giving Unreasonable Advice To Investors

 

Previously, FINRA suspended Fawcett for making unsuitable investment recommendations to customers when he worked for Salomon Whitney Financial. Evidently, Fawcett executed AWC #: 2015043939101 on November 29, 2017; FINRA accepted it on December 18, 2017. This AWC outlines disconcerting facts about Fawcett’s violations of FINRA Rules 2111 and 2010.

Namely, Fawcett told a customer to sell $865,000.00 in mutual funds and buy mutual funds Fawcett recommended. However, Fawcett asked the customer to invest the proceeds in Class A shares of 14 funds in 12 fund families. Fawcett’s recommendations were problematic in two respects, according to FINRA. Primarily, the customer had conservative objectives and a short term investment time horizon. Despite this, Fawcett advised the customer to purchase Class A shares, which are generally not meant for investors who plan to sell their holdings within 1-3 years. Secondly, Fawcett asked the customer to invest in 12 different fund families preventing the customer from receiving breakpoint discounts. Those breakpoint discounts could have applied if the customer directed the proceeds into less fund families.

Aside from the suspension, FINRA required Fawcett to pay a $2,500 fine, and disgorge $22,714.30 in commissions he received.

Here is a summary of some recent investor disputes concerning Fawcett:

May 21, 2018 Arbitration Claim Suggesting Lawrence Fawcett Churned WestPark Customer’s Account.

 

The WestPark Capital Inc. customer filed FINRA Arbitration #18-01928 regarding Fawcett’s sales practices. Primarily, the customer alleged Fawcett excessively traded or churned stocks in the customer’s account. Basically, Fawcett bought and sold securities primarily to generate commissions for Fawcett’s benefit. Secondly, the customer alleged that Fawcett sold the customer unsuitable equities. Because of this, the customer alleged $33,271.06 in damages in this pending matter.

SW Financial Investor Brings FINRA Arbitration Concerning Fawcett’s Unauthorized Trading

 

Evidently, Salomon Whitney Financial reported that a customer took issue with Fawcett’s sales practices. Supposedly, in FINRA Arbitration #18-01055 dated April 3, 2018, the customer alleged that Fawcett failed to act responsibility with the customer’s assets. Secondly, Fawcett allegedly made unreasonable and inappropriate equity trades. Thirdly, the customer claimed that Fawcett made trades without receiving the customer’s authorization. Fourthly, Fawcett allegedly violated provisions of the customer’s investment agreement. Finally, just as the other WestPark Capital Inc. customer alleged, Fawcett supposedly churned the customer’s investment account. As a result, the customer asked for $260,038.00 in compensation for the alleged harm. Currently, this matter is unresolved.

Lars Soreide Highest Ethical Standard Award 2018

Lars Soreide Highest Ethical Standard Award 2018

Evidently, Fawcett worked at Salomon Whitney Financial from 2013 to 2015, and WestPark Capital, Inc. from 2015 to 2018. Experienced losses by investing with securities broker Lawrence John Fawcett Jr? If you have, contact Soreide Law Group at (888) 760-6552 and speak with experienced counsel about a possible recovery of your investment losses. Soreide Law Group represents clients on a contingency fee basis and advances all costs. The firm has recovered millions of dollars for investors who have suffered losses due to misconduct of brokers and brokerage firms.