SEC Bars Raymond James Broker Thomas K. Keough for Sale of Unregistered Securities
Thomas Keough of North Reading, Massachusetts was barred by the United States Securities & Exchange commission for the sale of unregistered securities whil Keough was a registered representative with Raymond James Financial Services, Inc. and Morgan Stanley.
The SEC found that beginning in approximately 2002 and continuing through 2009, Keough raised approximately $110 million from investors by selling securities the securities of Inofin, Inc. to his brokerage customers and other members of the investing public.
In fact, Keough would recommend and sell Inofin securities to investors looking for a fixed income investment or set return, and was found to have told some of his customers that he was invested in Inofin and that he was receiving a 13% return and that they might receive as much as an 11% return. Solicited investors were then provided them with Inofin’s offering documents, which he kept in his office, or provided them with the contact information for Inofin’s President, Michael Cuomo. Inofin then paid Keough a referral fee on each investor that originated with Keough. During the entire period that Keough offered and sold Inofin’s unregistered securities to prospective investors, he did so away from the supervision of his broker-dealer employer.
To hide his unlicensed sale of unregistered investments, Keough arranged to have Inofin pay his commissions to his wife over $368,000 in investor-based commissions. Last year, Keough was also found by the Massachusetts Securities Division to have sold these unregistered securities to customers in violation of the Massachusetts Uniform Securities Act.
More Investor Related Claims Arise
As of March 3, 2015, there are seven disclosed customer initiated, investor related claims against Raymond James Financial Services, Inc. and Morgan Stanley based upon Keough’s conduct.
Under the common law agency principles, the doctrine of respondeat superior, and as a “control person,” and for their failure to supervise Keough.
Customers purchasing these unregistered securities from Keough ought to have their investment accounts reviewed by a professional to determine if they have been the victim of fraud.
Guiliano Law Group
Our practice 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 to 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.