South Florida Arbitration & Litigation Lawyer Blog
Outside Business and Selling Away Fraud, Misrepresentation and Negligent Supervision FINRA Arbitration and Litigation Attorney, Russell L. Forkey, Esq.
December, 2011:
Isaiah Solomon (CRD #1112800, Registered Representative, Mitchellville, Maryland) submitted a Letter of Acceptance, Waiver and Consent in which he was fined $15,000, which includes disgorgement of $8,600 representing the financial benefits he received from sales, and suspended from association with any FINRA member in any capacity for 18 months. The fine must be paid either immediately upon Solomon’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, Solomon consented to the described sanctions and to the entry of findings that he participated in the sale of securities outside his employment at his member firm and failed to give written notice to his firm of his intention to engage in the transactions and obtain the firm’s authorization to engage in such activities; Solomon referred individuals, some of whom were his firm’s clients, to an individual and an entity so the customers could invest with the entity. The findings stated that the entity initially claimed to offer foreign exchange trading opportunities, but later claimed to offer investments in a hedge fund that would engage in various trading strategies; the customers invested approximately $750,000 with the individual and entity, and Solomon also invested with the individual and entity. The findings also stated that Solomon introduced the customers to the individual, typically during a conference call where the individual promised guaranteed returns of 12 percent per year for two years; Solomon recommended the investment to most of the customers and received $8,600 from the entity for his efforts. The findings also included that Solomon engaged in discussions with the individual and the entity about possible employment with the entity. The suspension is in effect from October 17, 2011, through April 16, 2013. (FINRA Case #2009020265401).