South Florida Arbitration & Litigation Lawyer Blog
Registered Representative and Account Executive Fraud, Mismagamement and Misrepresentation FINRA Arbitration and Litigation Attorney, Russell L. Forkey, Esq.
March, 2012:
Philip Mark Cain (CRD #2703720, Registered Representative, Corona de Tucson, Arizona) was barred from association with any FINRA member in any capacity. FINRA did not order restitution because Cain’s member firm repaid his customers in full. The sanction was based on findings that Cain converted customer funds and engaged in fraudulent sales practices, including making material misrepresentations, in connection with the purchase or sale of securities and creating false account statements to deceive customers. The findings stated that Cain recommended to his customers that they invest in what he falsely represented as structured notes issued by a bank, telling the customers that the notes could not be purchased directly through their firm accounts. The customers withdrew funds totaling approximately $1.3 million from their firm accounts and either wrote checks or wired the funds to Cain’s registered business, a name closely resembling the name of his firm, for Cain to purchase the bank notes on their behalf; instead of doing so, Cain converted the funds to his own use. The findings also stated that Cain fabricated quarterly account statements that appeared to be from the bank for each customer. On the fraudulent statements Cain imprinted the statements with “bank member NYSE, NASD, SIPC,” and showed what appeared to be interest accrued on the notes. The findings also included that Cain failed to respond to FINRA requests for information. (FINRA Case #2011027099701).