Purshe Kaplan Stockbroker Caught Selling Away
Xerxes Soli Mullan of New York New York a stockbroker formerly registered with Purshe Kaplan Sterling Investments has been fined $10,000.00 and suspended for two years from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon findings that Mullan took part in unapproved private securities transactions when he was registered with Purshe Kaplan. Letter of Acceptance Waiver and Consent No. 2019062886901 (Sept. 22, 2020).
According to the AWC, between April of 2017 and September of 2017, Mullan participated in capital raising activities which involved soliciting $3,000,000.00 in investments from 16 investors. The AWC stated that the securities were purchased through a registered investment advisory in which Mullan was Chief Executive Officer and majority shareholder.
FINRA stated that between September of 2018 and January of 2019, capital was raised by Mullan for purposes of financing the holding company which owned his registered investment advisory. Through a Regulation D securities offering and with the help of another stockbroker, Mullan took part in the management and solicitation of $3,000,000.00 from 20 investors. FINRA stated that Mullan owned most of the shares in the holding company when investors were pitched the securities offering.
The AWC also reported that in March of 2017, Purshe Kaplan was made aware from Mullan that he was involved with the registered investment advisory. The stockbroker failed to explain that he was involved in private securities transaction though. FINRA also noted that between November of 2017 and November of 2018, false certifications had been provided by Mullan to Purshe Kaplan as they suggested that Mullan did not have any involvement in private securities transactions. FINRA found Mullan’s conduct violative of FINRA Rules 2010 and 3280.
FINRA Public Disclosure confirms that Mullan is the subject of a customer initiated investment related complaint in which the customer sought unspecified damages supported by allegations that investment instructions were not followed and that investment recommendations were not suitable for the customer during the time that Mullan was associated with Merrill Lynch Pierce Fenner Smith.
Mullan was registered with Merrill Lynch until March 21, 2017. Between March 23, 2017 and June 5, 2019, he was registered with Purshe Kaplan.