New York Principal Broker Barred by FINRA for Converting Millions of Customer Funds for His Own Use

The following summation was obtained on FINRA’s website under “Disciplinary and Other FINRA Actions, October, 2013.”

Mark Christopher Hotton (CRD #2346843, Registered Principal, West Islip, New York)

was barred from association with any FINRA member in any capacity. Without admitting or denying the allegations, Hotton consented to the described sanction and to the entry of findings that he improperly used and converted millions of dollars of customer funds, without the customers’ knowledge or consent, for his own use and benefit.

FINRA's findings also stated that Hotton forged and falsified numerous documents and made numerous misrepresentations to his customers and others in order to further his fraudulent schemes and conversion of customer funds.

FINRA also found that Hotton exercised control over customers’ brokerage accounts at his firm, recommended and/or executed transactions that were excessive and unsuitable in light of the customers’ investment objectives, risk tolerances and financial situations, and acted with the intent to defraud or with reckless regard for the customers’ interests and for the purpose of generating commissions.

FINRA also found that Hotton executed numerous unauthorized trades in customers’ accounts, without the the customers’ knowledge, consent or authorization. The customers never gave written authorization to Hotton to exercise discretionary power in their account, nor did the customers ever give Hotton verbal time and price discretionary power.

Also, FINRA determined that during on-the-record testimony and in response to questions posed by FINRA staff, Hotton falsely testified on numerous topics and provided false information and documents to FINRA.
Hotton willfully failed to disclose the filing of an arbitration commenced against him by customers, and willfully failed to timely amend his Form U4 to disclose the commencement of federal action against him by the customers, or the temporary restraining order granted in that action. When Hotton finally amended his Form U4 to disclose the existence of the federal action, he falsely described the action as a business dispute between business partners.
(FINRA Case #2009017408101)

According to FINRA's BrokerCheck, Mark Christopher Hotton was previously registered with FINRA at the following brokerage firms:

OBSIDIAN FINANCIAL GROUP, LLC
CRD# 104255
NEW YORK, NY
02/2012 - 05/2012

ALEXANDER CAPITAL, L.P.
CRD# 40077
NEW YORK, NY
09/2010 - 03/2012

AMERICAN CAPITAL PARTNERS, LLC
CRD# 119249
HAUPPAUGE, NY
01/2009 - 08/2010

This ends the summation for the information obtained on FINRA’s website.

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