FINRA Bars CapWest Stockbroker In Hedge Fund Scam
Robert Russel Tweed (also known as Rusty Tweed) of San Marino California a stockbroker formerly employed by CapWest is the subject of a Financial Industry Regulatory Authority (FINRA) National Adjudicatory Council (NAC) Decision which affirmed an Extended Hearing Panel Decision in which Tweed was barred from associating with any FINRA member based upon findings of Tweed making misrepresentations and omissions regarding Athenian Fund L.P. In the Matter of Department of Enforcement v. Robert R. Tweed Complaint No. 2015046631101 (Dec. 11, 2019).
According to the NAC Decision, customers of Tweed’s had been sold interests in a private fund, Athenian Fund L.P., which Tweed and his advisory, Tweed Investment Services, used to accumulate $1,700,000.00 from at least twenty-four investors. At the time that those interests were recommended or sold by Tweed, he lacked experience with managing a private investment fund. FINRA stated that his customers were not told about all expenses and fees, how assets would be utilized at Athenian, or that some of the expenses and fees would be paid to Tweed.
On July 5, 2018, an Extended Hearing Panel concluded that omissions and misrepresentations were made (conduct violative of FINRA Rules 2010 and Securities Act of 1933 Section 17(a)(2) and 17(a)(3)) and that Tweed engaged in activities which served to defraud customers. NAC affirmed Extended Hearing Panel’s findings and its sanctions of a bar from the securities industry.
Tweed has also been charged by Securities and Exchange Commission (SEC) in a Complaint containing allegations of his false and misleading statements to customers about Athenian Fund L.P. Securities and Exchange Commission v. Tweed Financial Services Inc. The Complaint alleged that Tweed failed to invest customers’ funds in a quantitative stock trading strategy according to his representations, and instead invested in products which generated losses estimated at $800,000.00. SEC also claimed that losses were concealed from investors through Tweed issuing misleading and false statements to make it seem as though the investments were profitable. SEC alleged that Tweed’s conduct was violative of Investment Advisers Act and Rule 206(4).
FINRA Public Disclosure confirms that Tweed has been referenced in thirteen customer initiated investment related disputes containing allegations of his misconduct during the time that he was associated with United Securities Alliance, CapWest Securities Inc., Concorde Investment Services and National Planning Corporation. Specifically, on May 9, 2018, a customer filed an investment related complaint concerning Tweed’s conduct in which the customer requested $75,000.00 in damages based upon accusations of misrepresentations being made pertaining to Vertical US Recovery Fund II; and the Fund having poorly performed.
Tweed is also the subject of a customer initiated investment related arbitration claim in which the customer requested $500,000.00 in damages founded on allegations of bad investment recommendations being made by Tweed in regard to private placements and real estate security products. FINRA Arbitration No. 19-01101 (May 22, 2019). Also, a customer filed an investment related arbitration claim involving Tweed’s activities where the customer sought $1,423,796.00 in damages supported by accusations of unsuitability and misrepresentation. FINRA Arbitration No. 19-01899 (Aug. 15, 2019).