Mark Schklar, of New Woodstock, New York, stockbroker formerly registered with BB&T Securities, LLC, has been fined $10,000.00 and suspended for eight months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that he sold away from his firm. Letter of Acceptance, Waiver and Consent, No. 2015044509301 (Mar. 8, 2017).
According to the AWC, between February of 2013 and January of 2015, Schklar made recommendations and facilitated securities transactions of an entity in the business of engineering equipment designed to grow marijuana. Yet, Schklar failed to apprise BB&T Securities of his participation in the private securities transactions prior to facilitating them, and ultimately failed to gain the firm’s approval. Apparently, four investors collectively contributed $285,250.00 to purchase eight million shares in the entity. FINRA found that Schklar’s conduct was violative of FINRA Rule 2010 and NASD Rule 3040.
The AWC additionally cited Schklar for making an $80,000.00 loan to a customer of the firm in February of 2014. Evidently, the firm’s procedures and policies disallowed individuals such as Schklar from entering into lending arrangements with the customers unless an exception applied; none was provided in Schklar’s case. Further, Schklar misstated on BB&T’s annual compliance questionnaires that he had not lent a customer funds. FINRA found that Schklar’s conduct in this regard was violative of FINRA Rules 2010 and 3240.
Financial Industry Regulatory Authority (FINRA) Public Disclosure reveals that Schklar has been identified in four customer initiated investment related disputes concerning allegations of his wrongdoing while he was associated with BB&T Securities, LLC. Specifically, on December 16, 2013, a customer filed an investment related written complaint involving Schklar’s conduct, in which the customer requested more than $5,000.00 in damages based upon allegations that Schklar failed to apprise the customer of risks pertaining to municipal bonds that had been effected in the customer’s account.
Subsequently, on January 30, 2015, a customer initiated investment related arbitration claim regarding Schklar’s activities was resolved for $395,000.00 in damages based upon allegations that Schklar violated Tennessee Securities Act, breached his fiduciary obligations to the customer, and negligently transacted in the customer’s portfolio regarding investments in private placement and municipal debt securities. Further, on October 27, 2015, a customer initiated investment related arbitration claim involving Schklar’s conduct was settled for $220,000.00 in damages based upon allegations of fraud, misrepresentation, negligence, and breach of fiduciary duty.
Moreover, on April 21, 2016, a customer initiated investment related written complaint regarding Schklar’s activities was resolved for $48,490.95 in damages based upon allegations that Schklar effected municipal bond purchases in the customer’s account which were not suitable for the customer.
Schklar’s registration with BB&T Securities, LLC was terminated on January 20, 2015. Since June 13, 1991, Schklar has been associated with eleven different broker dealers, seven of which have been expelled by securities regulators for violation of federal securities laws or are otherwise defunct. #cockroach
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