FINRA Bars Country Capital Broker In Investigation
Adam Michael Lopez of Springfield Illinois a stockbroker formerly registered with Country Capital Management Company has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that he failed to cooperate with FINRA in an investigation into accusations of Lopez committing fraud. Letter of Acceptance Waiver and Consent No. 2018059935201 (Dec. 17, 2018).
According to the AWC, Country Capital Management Company informed FINRA via Form U5 that it terminated Lopez because Lopez had been terminated by the firm’s insurance company affiliates for possibly violating insurance agent contract provisions. Thereafter, on October 4, 2018, the Form U5 had been amended by Country Capital Management Company to reflect that during the time that Lopez had been terminated, he was investigated by a self-regulatory organization or government body in reference to his investment related business activities.
Moreover, the Form U5 stated that County Capital Management Company discharged Lopez based upon allegations that he committed fraud or wrongfully procured property, or otherwise violated investment-related rules, regulations or industry conduct standards.
According to the AWC, on October 2, 2018, FINRA launched an investigation into Lopez’s activities leading to the termination from Country Capital Management Company. As part of FINRA’s investigation, on October 8, 2018, Lopez was asked by FINRA to provide documentation and information in regard to the accusations of Lopez’s misconduct. Evidently, FINRA never received any response from Lopez.
Subsequently, on October 23, 2018, another of FINRA’s requests for Lopez’s documentation and information had been sent to Lopez. Lopez was asked by FINRA to make a response no later than November 6, 2018. The AWC stated that Lopez reportedly furnished some, but not all, of the information and documentation as response to FINRA’s request.
The AWC revealed that a phone call was placed to FINRA Department of Enforcement by Lopez’s counsel on November 9, 2018. Apparently, Lopez’s counsel informed FINRA that Lopez understood the nature of FINRA’s request but declined to provide any additional information or documentation. FINRA found Lopez’s failure to respond to be violative of FINRA Rules 2010 and 8210. Lopez was barred from the securities industry as a result.
Lopez’s securities registration in the State of Illinois had been revoked by the State of Illinois Department of Insurance according to an Order based on allegations that Lopez was financially irresponsible in conducting business, untrustworthy, and incompetent; and he possibly engaged in fraudulent activities. Case No. 1800493 (Oct. 12, 2018).
FINRA Public Disclosure reveals that Lopez has been identified in five customer initiated investment related disputes containing accusations of his misconduct while employed with Country Capital Management Company. Specifically, on September 27, 2018, a customer filed an investment related complaint involving Lopez’s conduct in which the customer sought $77,925.26 in damages supported by allegations that Lopez induced the customer to purchase a variable annuity; however, after Lopez received the customer’s funds, the variable annuity issuer did not have any record of a variable annuity being purchased in the customer’s name.
On October 5, 2018, another customer filed an investment related complaint regarding Lopez’s activities where the customer requested $22,850.00 in damages founded on accusations that Lopez took possession of the customer’s money for the purchase of a fixed annuity, but the purchase was never made. Then, on October 22, 2018, a customer filed an investment related complaint concerning Lopez’s conduct in which the customer sought $314,000.00 in damages based upon allegations that Lopez embezzled the customer’s funds; only $6,000.00 of the $320,000.00 invested by the customer had been returned.
Moreover, a customer filed an investment related civil action in the Seventh Judicial Circuit Court of Sangamon County, Illinois that involved Lopez’s activities where the customer requested unspecified damages supported by accusations of fraud and conversion of the customer’s funds. Civil Action No. 2018-L-000208 (Oct. 24, 2018).