Waddell Reed Broker Fined For Outside Business Activities
Carlos Velazquez of Elgin Illinois a stockbroker formerly employed by Waddell Reed has been fined $10,000.00 and suspended for eight months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that he engaged in undisclosed outside business activities and falsified documentation to FINRA personnel. Letter of Acceptance Waiver and Consent No. 2016051054501 (May 30, 2018).
According to the AWC, prior to Velazquez’s association with Waddell Reed, he was agent of record and secretary for a bookkeeping and tax preparation business, Company A, where he provided bookkeeping and tax preparation services. The AWC stated that eight months following Velazquez’s association with Waddell Reed, he informed the firm about having been a passive investor in Company A. The AWC revealed that Velazquez made omissions to the firm concerning the scope and nature of Velazquez’s services to customers of Company A, and failed to be forthcoming concerning his role within Company A. The AWC stated that Velazquez violated FINRA Rules 2010 and 3270 based upon his failure to provide written notice of his outside business activity to Waddell & Reed and procure the firm’s approval.
The AWC further stated that when FINRA investigated Velazquez’s activities, Velazquez was asked to provide FINRA with an explanation as to why he did not provide Waddell Reed with complete disclosures concerning Company A. Velazquez apparently contended that his involvement was limited to unwinding Company A; however, Velazquez was an active owner and provided bookkeeping and tax preparation services to customers of Company A. FINRA concluded that Velazquez’s false representations were violative of FINRA Rule 2010.
The information contained herein has been obtained from reliable sources however may not be accurate and is not guaranteed by us. Readers are encouraged to undertake their own independent investigation and evaluation of the relevant facts. All claims and allegations are subject to adjudication, decisions may be subject to appeal, and no inference is intended, nor should any inference be made from any information contained herein from any source.
This posting and the information on our website is for general information purposes only. This content should be not considered legal advice, and any responses, comments, e-mails, or other communications do not form any attorney client relationship. Attorney Advertisement. See Important Disclaimer
Guiliano Law Group
Our practice is limited to the representation of investors. We accept representation on a contingent fee basis, meaning there is no cost to you unless we make a recovery for you. There is never any charge for a consultation or an evaluation of your claim. For more information, contact us at (877) SEC-ATTY.
For more information concerning common claims against stockbrokers and investment professionals, please visit us at stockbrokerfraud.com
To learn more about FINRA Securities Arbitration, and the legal process, please visit us at securitiesarbitrations.com