Raymond Clark, a principal with Dynasty Capital Partners, Inc., was barred from associating with any Financial Industry Regulatory Authority (FINRA) member in all capacities in accordance with an Order Accepting Offer of Settlement containing findings that Clark failed to provide on-the-record testimony in connection with an investigation into allegations that he had executed unauthorized and excessive trades in client accounts, utilized his discretion in client accounts without their authority, and accepted trade instructions from someone who did not have authority to trade in a client account. Department of Enforcement v. Raymond Clark, No. 2014040349001 (Mar. 26, 2015).

According to the Order Accepting Offer of Settlement, FINRA had launched the investigation into Clark on April 2014, where Clark was asked by FINRA to provide on-the-record testimony on several occasions pursuant to Rule 8210. FINRA, according to the Order, never received any response to their first written request, although FINRA was able to confirm that the request was received. The Order indicated on September 4, 2014, Clark notified FINRA staff that he was not going to appear for the requested testimony.

According to the Order, on October 14, 2014, after FINRA had already made their second request, Clark e-mailed FINRA staff and indicated that he was not associated with Dynasty (or any FINRA member firm) and did not intend on being registered with another broker-dealer in the future. Eventually, according to the Order, Clark indicated that he would be willing to testify, but continued to stall until which point he failed to comply with FINRA’s third request. The Order indicated that as a result of materially impeding FINRA’s investigation, FINRA found that Clark violated FINRA Rules 8210 and 2010.

FINRA registered representatives like Clark who do not cooperate with FINRA’s investigations often face a permanent bar from practicing in the securities industry as such lack of cooperation violates FINRA’s Rule 8210 – requiring that no member or person shall fail to provide information or testimony or permit an inspection and copying of books, records, or accounts pursuant to the rule. FINRA typically accompanies a Rule 8210 violation with a Rule 2010 violation when individuals, according to FINRA, do not appear to observe high standards for commercial honor and just and equitable principles of trade.

Public records via FINRA’s BrokerCheck reveal that Clark has been subject to fourteen disclosures. Of them, eleven are customer disputes and three are regulatory issues. On May 22, 2002, Clark settled with a client for $2,500.00 after being alleged to have not warned a client about risks and commissions, engaging in churning, and misrepresentations. On March 14, 2006, Clark settled with a client for $1,500.00 after a client alleged fraud, unsuitability, misrepresentation, breach of fiduciary duty, and breach of contract. On July 28, 2008, Clark settled with a client for $62,500.00 after being alleged to have defrauded the client via misrepresentations. On May 27, 2009, Clark settled a customer dispute for $395,000.00 after the customer alleged unauthorized trades, fraud, breach of fiduciary duty, and negligence.

Public records reveal that in September, 2012, Clark was fined $5,000 and suspended for two months after consenting to FINRA’s findings that he violated NASD Rules 2110 for using his personal email address to communicate with clients. Letter of Acceptance, Waiver, and Consent, No. 2008014383901. Further, on August 5, 2014, FINRA’s Hearing panel fined Clark $20,000 and suspended him for nine months after finding that Clark had violated FINRA Rule 2010 by using his personal e-mail account to communicate with customers, failing to report client complaints to his firm regarding commission charges, and causing his firm to violate recordkeeping rules. Department of Enforcement v. Raymond Clark, No. 2011027402201 (Aug. 5, 2014).

Guiliano Law Group

If you have been the victim of securities fraud and you have a complaint, you should consult with an attorney. The practice of Nicholas J. Guiliano, Esquire, and The Guiliano Law Group, P.C., is limited to the representation of investors in claims for fraud in connection with the sale of securities, the sale or recommendation of excessively risky or unsuitable securities, breach of fiduciary duty, and the failure to supervise. We accept representation on a contingent fee basis, meaning there is no cost unless we make a recovery for you, and there is never any charge for a consultation or an evaluation of your claim. For more information contact us at (877) SEC-ATTY.

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