South Florida Arbitration & Litigation Lawyer Blog
FINRA Fraud and Mismanagement Arbitration Attorney, Russell L. Forkey, Esq.
May, 2011
Carl Henry Blanchard (CRD #3175596, Registered Representative, West Roxbury, Massachusetts, formerly licensed with New England Securities) submitted a Letter of Acceptance, Waiver and Consent in which he was fined $31,434, which includes disgorgement of $16,434 to be paid to the firm, and suspended from association with any FINRA member in any capacity for six months. The disgorgement must be paid to the firm within 60 days of the acceptance of the AWC, and the remaining fine must be paid either immediately upon Blanchard’s reassociation with a FINRA member firm following his suspension, or prior to the filing of any application or request for relief from any statutory disqualification, whichever is earlier. Without admitting or denying the findings, Blanchard consented to the described sanctions and to the entry of findings that he participated in private securities transactions when a client of his accounting firm purchased promissory notes an individual issued. The findings stated that Blanchard failed to provide written notice to his firm describing in detail the proposed transactions with the individual issuing the promissory notes, his proposed role therein, and stating whether he had received or might receive selling compensation in connection with the transactions. The findings also stated that Blanchard introduced the client to the individual, and the client invested a total of approximately $325,000 in the individual’s promissory notes as a result of Blanchard’s referrals. The findings also included that the individual paid Blanchard about $16,434 in selling compensation for his referral. FINRA found that the customer lost approximately $290,000 as a result of the investment, and the firm made full restitution to Blanchard’s client even though he was not a customer of the firm. The suspension is in effect from March 21, 2011, through September 20, 2011. (FINRA Case #2010021436501).
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