HD Vest Stockbroker Barred In Investigation
Erin Lynn Verespy of Trumbull Connecticut a stockbroker formerly employed by HD Vest Investment Services has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that Verespy neglected to cooperate with a FINRA investigation into accusations that funds belonging to a customer had been misappropriated by Verespy while she was associated with HD Vest Investment Services. Letter of Acceptance Waiver and Consent No. 2018058108001 (Apr. 15, 2019).
According to the AWC, FINRA had been notified by HD Vest Investment Services that Verespy was the subject of a customer initiated investment related complaint alleging Verespy’s misappropriation and improper use of a customer’s funds during the time that Verespy was a bookkeeper and financial advisor for the customer.
Following up on HD Vest’s information, a request had been made by FINRA on March 11, 2019 for Verespy to provide the regulator recorded testimony in regard to her activities with the customer that prompted the customer to claim that Verespy misappropriated the customer’s funds. Apparently, Verespy was required to comply with FINRA’s request according to Rule 8210; however, she failed to do so. Apparently, counsel for Verespy contacted FINRA on March 11, 2019 to inform the regulator that Verespy received FINRA’s request but refused to testify on April 5, 2019 or any other time. Consequently, FINRA found Verespy’s refusal to cooperate as violative of FINRA Rules 2010 and 8210.
FINRA Public Disclosure additionally confirms that a customer initiated investment related civil action brought in the State of Connecticut Superior Court that involved Verespy’s activities was resolved for $1,000,000.00 in damages based upon allegations of the customer’s funds having been improperly utilized and misappropriated by Verespy. Civil Action No. FBT-CV18-5035610-S (Jan. 16, 2019).
Verespy’s registration with HD Vest Investment Services has been terminated as of March 27, 2019.