TFS Stockbroker Suspended For Failure To Pay Arbitration Award
Francis Joseph Gendlek of East Brunswick New Jersey a stockbroker formerly employed by IFS Securities and TFS Securities has been suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity supported by allegations that Gendlek neglected to cooperate with the terms of a FINRA Arbitration Award. FINRA Arbitration No. 17-00637 (Apr. 24, 2019).
According to the Award, Gendlek was ordered to pay customers $53,200.00 after being found liable on the customer’s claims of Gendlek (1) forging signatures of the customer on investment related documentation (2) engaging or participating in a Ponzi scheme (3) selling the customer securities outside the auspices of the securities broker dealer and (4) engaging in an unauthorized customer loan arrangement.
FINRA Public Disclosure reveals that Gendlek has already been barred by FINRA for, inter alia, committing fraud and selling away. Letter of Acceptance Waiver and Consent No. 2016049989801 (Feb. 1, 2018). Particularly, FINRA found that fraudulent omissions and misrepresentations had been made by Gendlek in regard to PMP Enterprises LLC – a company he steered investors towards purchasing that was focused on real estate development initiatives.
Apparently, Gendlek caused investors to collectively sustain $620,000.00 in losses when PMP went bankrupt. Gendlek reportedly solicited the customer’s investments away from the firm and without its authorization. Consequently, FINRA found Gendlek’s conduct violative of Securities Exchange Act of 1934 Section 10(b); Securities and Exchange Commission (SEC) Rule 10b-5; FINRA Rules 2010, 2020 and National Association of Securities Dealers (NASD) Rules 3040, 2110 and 2120.
Supposedly, Gendlek also engaged in outside business activities – consulting and elder care planning services – without providing the firm information about the activities and procuring the firm’s approval. FINRA found Gendlek’s conduct in this respect to be violative of FINRA Rules 2010 and 3270 as well as NASD Rules 2110 and 3030.
Gendlek is also subject of a New Jersey Bureau of Securities disciplinary action in which Gendlek’s securities registration has been revoked founded on accusations that Gendlek had been barred by FINRA; and engaged in unethical or dishonest behavior in the securities industry while registered with PMP Enterprises LLC and IFS Securities. In the Matter of Francis Joseph Gendlek (June 26, 2018). New Jersey Bureau of Securities found FINRA’s barring of Gendlek as proper grounds to revoke Gendlek’s securities registration. Gendlek was also denied any exemption to securities person registration requirements under New Jersey statutes.
Gendlek was terminated from IFS Securities Inc. on July 20, 2016 based upon allegations of Gendlek making misleading statements or misrepresentations concerning investments; and potentially converting or misappropriating a customer’s securities or funds.