The Investor’s Watchdog

The Investor's Watchdog

Former Kestra Investment Services Registered Representative Agrees to FINRA Bar for Refusing to Produce Documents and Information in Investigation of Potential FINRA Rule Violations

Monday, March 4, 2019

The Financial Industry Regulatory Authority (FINRA) Department of Enforcement recently approved a Letter of Acceptance, Waiver and Consent (AWC) submitted by former registered representative John Spach for violating FINRA Rules by failing to produce documents and information requested by FINRA staff.

Spach was associated with Kestra Investment Services, LLC (Kestra) in Aliso Viejo, California from August 2014 to June 2018 as an Investment Company and Variable Contracts Products Representative. According to the AWC, Spach was permitted to resign while under internal review regarding potential violation of “various firm policies while attempting to settle a customer complaint.” Shortly after Kestra submitted the Form U5 to FINRA, the Department of Enforcement began looking into these allegations that to his resignation.

On December 19, 2018, the Department of Enforcement staff sent Spach a request for documents and information. On January 10, 2019, Spach’s counsel informed FINRA staff that Spach would not be producing the documents or information at any time, thus violating FINRA Rules 8210 and 2010.

By signing the AWC, John Spach consented to a bar from associating with any FINRA member firm in any capacity.

Oftentimes brokerage firms can be held liable for the brokers’ misconduct if they failed to supervise them while registered at the firm.  If you lost money due to your broker’s misconduct, you may be able to recover from your broker or the brokerage firm where he or she was registered. Since 1998, the experienced attorneys at ChapmanAlbin have been fighting for victims of investment fraud and broker misconduct. Call us today at 1-877-410-8172 for a free consultation.

 

Author: Jason T. Albin

Jason Albin is an Attorney and Partner at ChapmanAlbin, the investor rights law firm. He has represented hundreds of investors who have lost money due to broker misconduct, unsuitable investment advice and fraud.​ Jason also represents individuals in “whistleblower” suits filed against unscrupulous companies that try to defraud the US federal and state governments.

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