South Florida Arbitration & Litigation Lawyer Blog
FINRA Variable Annuity and Private Placement Arbitration Fraud Attorney, Russell L. Forkey, Esq.
February, 2011:
Kim Edward Elverud (CRD #2139216, Registered Principal, Bloomington, Minnesota, formerly licensed with Sumner Harrington, LTD.) submitted an Offer of Settlement in which he was barred from association with any FINRA member in any capacity. Without admitting or denying the allegations, Elverud consented to the described sanction and to the entry of findings that he caused his member firm to use Internet advertisements, websites and other public communications that were misleading, did not supply fair and balanced presentations of risks and rewards, or failed to give a sound basis for evaluating information. The findings stated that Elverud failed to approve or maintain records of public communications his firm issued. The findings also stated that Elverud’s firm distributed a newsletter, which Elverud wrote, about a company whose securities the firm marketed; the letter was unduly and excessively positive, and failed to disclose material facts concerning the company’s financial difficulties, which caused the communication to be misleading. The findings also included that Elverud made misrepresentations to investors through letters written on firm letterhead, about the securities the company issued, and the letters misrepresented the individual offers being made as a general reinvestment option to keep the investors from redeeming their holdings in the company’s securities, and omitted material information regarding the company’s financial difficulties. FINRA found that Elverud caused his firm’s books and records identifying personnel holding supervisory and compliance responsibilities to be inaccurate. FINRA also found that Elverud caused his firm to conduct a securities business while it was in violation of its net capital requirements. (FINRA Case #2008013429301).