Richard A. McCollam of Layfayette, California, a stockbroker with National Planning Corporation, was charged by Financial Industry Regulatory Authority (FINRA) Department of Enforcement in a Complaint alleging McCollam willfully failed to disclose two customer arbitrations and seven customer complaints on his Uniform Application for Securities Industry Regulation filed on January 22, 2014, referred to as Form U4. Department of Enforcement v. McCollam, No. 2012035284301 (Dec. 10, 2015).

According to the Complaint, McCollam willfully acted in contravention of Article V, Section 2(c) of FINRA’s By-Laws and violated FINRA Rules 1122 and 2010. FINRA’s Rule 1122 states that no member or person associated with a member shall file with FINRA information with respect to membership or registration which is incomplete or inaccurate so as to be misleading. This rule exemplifies FINRA’s efforts of ensuring market transparency for investors and other market participants.

Public disclosure records reveal that McCollam has been subject to twenty-six disclosure incidents. On August 28, 2009, McCollam settled a customer dispute for $32,500.00 after a customer alleged breach of fiduciary duty, violations of California’s Securities Act, negligence/negligent misrepresentation/omission, common law fraud, and breach of contract. On August 26, 2010, Royal Alliance Associates, Inc. terminated McCollam amid allegations of Rubin’s failure to follow firm policy regarding the pre-approval of variable annuities.

On January 18, 2013, McCollam became subject to a pending customer dispute, where a customer is requesting $185,000.00 after alleging unsuitable variable annuity and REIT purchases. On July 8, 2013, McCollam settled a customer dispute for $30,000 after the claimant alleged unsuitable variable annuities and REIT recommendations. On September 16, 2013, McCollam settled a customer dispute for $175,000.00 after the claimant alleged that McCollam failed to supervise another advisor, who was alleged to have made unsuitable recommendations.

On June 27, 2014, McCollam became subject to four customer pending customer disputes, where customers alleged unsuitable investment recommendation(s). Additionally, on June 27, 2014, McCollam became subject to a customer dispute, where a customer is requesting $280,000.00 in damages after alleging an improper 72T election and unsuitable variable annuity purchase. On July 9, 2014, McCollam became subject to another four pending customer disputes, where customers are requesting (collectively) $517,000 after alleging unsuitable investment recommendations. On July 21, 2014, McCollam became subject to six additional pending customer disputes, where claimants alleged unsuitable investment recommendations and variable annuity and REIT purchases and are asking (collectively) for $1,487,000 in damages.

Guiliano Law Group

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