FINRA

Respondent Dresselaers failed to pay fines and/or costs of $4,514.41 in FINRA Case #2016048675902.

letter

Revocation

Pursuant to FINRA Rule 8320, Respondent Dresselaers' FINRA registration is revoked as of the close of business on December 10, 2019, for failure to pay fines and/or costs.

Statement of Claim alleges that registered representative recommended unsuitable investments in Exchange Traded Funds and failed to explain the risks associated with these investments.

$255,000.00

$285,000.00

Statement of Claim alleges that registered representative recommended unsuitable investments in Exchange Traded Funds, and Private Placements, and Equity Securities

$5,000,000.00

$2,000,000.00

Statement of Claim, alleges that registered representative recommended unsuitable investments in Exchange Traded Funds and Closed-End Mutual Funds, and failed to explain the risks associated with these investments.

$600,000.00

$500,000.00

Statement of Claim, alleges that Registered Representative recommended unsuitable investments in Exchange Traded and Equity Securities, and failed to explain the risks associated with these investments.

$1,565,000.00

$1,250,000.00

Maryland

The Division alleged that the Respondent violated sections 11-301 and 11-302(a) of the Securities Act by, among other things, purchasing securities that were unsuitable for a customer and otherwise trading the customer's account in an unsuitable manner.

Consent

Cease and Desist

Civil and Administrative Penalty(ies)/Fine(s)

$10,000.00

Suspension

Agent and Investment Adviser Representative

4 months

10/16/2017

2/16/2018

Conditions placed on registration upon re-registration with the State of Maryland.

FINRA

Without admitting or denying the findings, Dresselaers consented to the sanctions and to the entry of findings that while registered with his member firm he recommended to the firm's customer, investments in several nontraditional exchange-traded funds (ETFs) and stocks issued by companies in the metals and mining sector and these recommendations were unsuitable for the customer, a professional athlete with no investment experience, a moderate risk tolerance, and an investment objective of long-term growth. The findings stated that the customer was a professional athlete when he opened an account with the firm and at the time had no investment experience. On his new account form, the customer stated that he had a moderate risk tolerance and that his investment objective was long-term growth. The customer told Dresselaers that he needed his earnings as an athlete to last the rest of his life. The findings also stated that notwithstanding the customer's investment profile, Dresselaers recommended that the customer invest more than $2.3 million in nontraditional ETFs, including leveraged, inverse ETFs. Dresselaers then recommended that the customer hold these investments for extended periods of time, some for more than five years. These recommendations were unsuitable, and the customer lost a total of $851,175 on these investments. In addition to recommending nontraditional ETFs, Dresselaers recommended that the customer invest approximately $500,000 in several different equities, including approximately $375,000 in stocks issued by companies in the metals and mining sector. As a result of these and other recommendations by Dresselaers, approximately 65 percent of the customer's portfolio was invested in the metals and mining sector. This concentration exposed the customer to the risk of significant losses when the metals and mining market declined. These recommendations were unsuitable, and the customer lost a total of $264,618 on these investments. Dresselaers' recommendations of nontraditional ETFs and metals and mining stocks were not suitable for the customer and these securities were not consistent with the customer's stated investment objective of long-term growth and moderate-risk tolerance. The customer suffered losses of more than $1.1 million on these investments.

Acceptance, Waiver & Consent(AWC)

Civil and Administrative Penalty(ies)/Fine(s)

$10,000.00

Disgorgement

$18,708.00

Suspension

All Capacities

60 days

10/16/2017

12/14/2017

Interest

Without admitting or denying the findings and solely for the purposes of that proceeding and without adjudication of any issue of law or fact, registered representative consented to the findings and to the imposition of a 60 calendar-day suspension in all capacities, a fine of $10,000, and disgorgement of commissions in the amount of $18,708 plus interest.

Statement of Claim alleges that registered representative recommended unsuitable investments in Exchange Traded Funds and equity securities, and failed to explain the risks associated with these investments.

$917,314.00

$1,500,000.00