Former M Holdings Securities Registered Representative Consents to FINRA Bar for Refusing to Cooperate with Investigation into Conversion and Other Allegations of MisconductTuesday, July 9, 2019
The Financial Industry Regulatory Authority (FINRA) Department of Enforcement recently approved a Letter of Acceptance, Waiver and Consent (AWC) to resolve allegations of securities industry rules violations against former registered representative Mark Raezer.
According to his FINRA BrokerCheck report, Raezer was associated with Taylor Capital Management Inc. (TCM) in Aurora, Colorado as an Investment Company and Variable Contracts Representative from February 2015 to January 2018. TCM discharged Raezer after being notified by the Colorado Division of Securities that they were preparing charges against Raezer for selling securities outside of the firm without advising TCM before doing so. The Division of Securities suspended him for 60 days from January 31, 2018 to April 1, 2018.
The AWC resolves FINRA’s allegations that between January and March 2017, Raezer participated in nine private securities transactions from a purported real estate investment company totaling $911,000. Though FINRA doesn’t believe he was the lead in this effort, the Department of Enforcement alleges that Raezer participated by helping the investors complete the applications and subscription paperwork. FINRA alleges that for one investor, he also provided a sales brochure and discussed the investment with the customer. Raezer did not receive compensation for his participation, but he “indirectly benefited by reason of a profit-sharing arrangement he had in the retirement planning, life insurance, and tax preparation business established by [the orchestrator].” It was later found that the founder of the issuing company, the purported real estate investment company, was using investor funds for his personal use.
FINRA asserts that Raezer violated FINRA Rules 3280 and 2010 because he did not disclose or obtain permission from his member firm to participate in these private securities transactions. By signing the AWC, Mark Raezer consented to a ten-month suspension from associating with any FINRA member firm in any capacity and a $15,000 fine.
If a broker was not properly supervised while registered at a brokerage firm, the firm can be held liable for the broker’s misconduct. Did your broker cost you money? If so, you may be able to recover from him or the brokerage firm where he or she was registered. Since 1998, the attorneys at ChapmanAlbin have been representing victims of investment fraud and broker misconduct. Call us (1-877-410-8172) today for a free, no obligation consultation.