SEC Bars First Standard Stockbroker For Fraud
William Christian Gennity of Staten Island New Jersey a stockbroker formerly registered with First Standard Financial Company has been barred from being a stockbroker or investment advisor or otherwise associating with investment advisories or securities broker dealers according to an SEC Order containing findings that Gennity defrauded investors. In the Matter of William C. Gennity Administrative Proceeding File No. 3-19015 (Mar. 4, 2019).
The SEC’s Order referenced that SEC obtained a final judgement against Gennity which enjoined him from engaging in conduct violative of Securities Exchange Act of 1934 Section 10(b), SEC Rule 10b-5 and Securities Act of 1933 Section 17(a).
Gennity was subject of a SEC Complaint alleging that while he was employed by prior securities broker dealer employer, Alexander Capital, L.P., Gennity effected unauthorized trades in the accounts of four customers; churned their investment portfolios; made omissions or unfounded statements in regard to their investments; provided customers with investment advice which failed to be appropriate because it did not comport with their tolerance for risk, objectives for investing, financial needs and circumstances; and generated illicit gains.
SEC alleged that a total of $280,000.00 in commissions had been generated by Gennity as a result of his actions. The Complaint alleged that Gennity’s conduct was violative of Securities Exchange Act of 1934 Section 10(b), SEC Rule 10b-5 and Securities Act of 1933 Section 17(a).
This is not the first time that Gennity has been sanctioned by a securities regulator. In particular, Gennity has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon allegations of Gennity’s failure to provide information to FINRA after it was requested of him by the regulator. Case No. 2018057324501 (Apr. 1, 2019). Initially, Gennity was suspended by FINRA on January 22, 2019 for failing to cooperate. The stockbroker was provided three months from the date his Notice of Suspension was issued to seek the termination of his suspension imposed by FINRA; however, Gennity failed to respond by the deadline resulting in an automatic bar from the securities industry.
FINRA Public Disclosure confirms that Gennity has been identified in eight customer initiated investment related disputes that concern accusations of his misconduct while he was employed with Alexander Capital L.P. and First Standard Financial Company. In fact, on November 14, 2016, a customer initiated investment related complaint regarding Gennity’s activities was resolved for $12,029.52 in damages supported by allegations that equity trades were executed in the customer’s account without the stockbroker procuring permission beforehand.
Another customer initiated investment related arbitration claim involving Gennity’s conduct was settled for $75,000.00 in damages founded on accusations that fiduciary obligations to the customer were violated in reference to over-the-counter equities transactions; and the customer’s account had been churned. FINRA Arbitration No. 17-01783 (Aug. 2, 2018). On December 3, 2018, another customer filed an investment related arbitration claim concerning Gennity’s activities where the customer sought $90,198.00 in damages based upon allegations that the customer was placed in bad stock investments and that the customer’s account was churned.
Another customer filed an investment related arbitration claim in regard to Gennity’s conduct in which the customer sought $380,000.00 in damages supported by accusations of trades being effected by Gennity on an excessive basis; transactions having been executed without the customer’s permission; and the customer being placed in equities which were in no way appropriate. FINRA Arbitration No. 19-00416 (Feb. 15, 2019). Gennity is also the subject of a customer initiated investment related arbitration claim where the customer was awarded $2,404,376.97 in damages based upon Gennity being found liable on the customer’s claims of excessively trading stocks and other investments in the customer’s account, and assessing unwarranted sales charges. FINRA Arbitration No. 18-01386 (May 15, 2019).
Gennity’s registration with First Standard Financial Company LLC was terminated on November 2, 2018.