Utah

the division alleged respondent violated section 61-1-1(2) of the utah uniform securities act (Act) and was subject to a bar under section 61-1-6 of the act.

Stipulation and Consent

Bar (Permanent)

all capacities

Cease and Desist

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

$30,000.00

National Futures Association

NFA Release, September 28, 2015: Having reviewed the investigative report submitted by the Compliance Department of NFA, and having found reason to believe that NFA Requirements are being, have been or are about to be violated and that the matter should be adjudicated, this Committee issues this Complaint against Robert Hawkes Potter. NFA was contacted by Potter's supervisor at his firm, who indicated that he had terminated Potter upon learning that Potter had solicited a customer to trade futures and instructed the customer to wire funds to Potter's personal bank account. Potter's supervisor also provided NFA with copies of text messages between Potter and the customer, which discussed the customer's purported investment in a futures trading account. After speaking with Potter's supervisor, NFA immediately began an investigation of him. NFA's investigation found that Potter acted as an unregistered futures commission merchant (FCM) by having the above customer wire funds to Potter's personal bank account, that Potter converted the customer's funds to his own use, and that Potter lied to the customer about the value of the customer's supposed investment. By reason of the foregoing acts and omissions, Potter is charged with violations of NFA Compliance Rules 2-2(h), 2-2(i) and 2-4.

Decision

Bar (Permanent)

see comment

Indefinite

12/10/2015

FINRA

WITHOUT ADMITTING OR DENYING THE FINDINGS, POTTER CONSENTED TO THE SANCTION AND TO THE ENTRY OF FINDINGS THAT HE FAILED TO PROVIDE DOCUMENTS AND INFORMATION REQUESTED BY FINRA DURING THE COURSE OF AN INVESTIGATION INTO ALLEGATIONS THAT POTTER COMINGLED CUSTOMER FUNDS WITH HIS PERSONAL FUNDS.

Acceptance, Waiver & Consent(AWC)

Bar (Permanent)

All Capacities

9/3/2015

CAMBRIA CAPITAL, LLC

Discharged

AN INDIVIDUAL ALLEGED MR. POTTER WAS INSTRUCTED TO OPEN COMMODITIES/FUTURES ACCOUNT IN THE NAME OF THE INDIVIDUAL AND DEPOSIT FUNDS FOR INVESTMENT IN OIL FUTURES CONTRACT(S). THE INDIVIDUAL ALLEGES NO ACCOUNT WAS EVER ESTABLISHED AND QUESTIONS THE VALIDITY OF ANY TRANSACTIONS DESPITE REPRESENTATIONS FROM MR. POTTER THAT THE CUSTOMER HAD PURCHASED A CONTRACT FOR OIL FUTURES AND PROVIDED A VALUATION OF THE POSITION.

UT RESIDENT DEPOSITED $400,000 IN JUNE 2007. ACCOUNT WAS CLOSED WITH ABOUT $21,500 LEFT. CLIENT CLAIMS UNSUITABLE RECOMMENDATIONS AND UNAUTHORIZED TRADES. HE WOULD LIKE THE RETURN OF HIS PRINCIPAL.

$378,500.00

THE FIRM'S REVIEW DID NOT REVEAL ANY EVIDENCE OF WRONDOING. THE ALLEGATIONS AND DEMAND FOR REMUNERATION WERE DENIED IN THEIR ENTIRETY.

THE CLIENT WROTE A LETTER TO HAVE LIMITED DISCRETION REMOVED FROM THE ACCOUNT. HE STATED IN THE REASON HE WANTED THE DISCRETION REMOVED WAS THAT HE LOST OR CLAIMED HE LOST APPROXIMATELY $100,000.00 AND DESIRED TO KEEP THE ACCOUNT OPEN AND DEPOSIT ANOTHER 200,000.00 BUT DID NOT WANT ANY DISCRETIONARY AUTHORITY TO ACCESS THE NEW FUNDS FOR TRADING. NO DAMAGES WERE SPECIFIED.

NONE CUSTOMER CALLED SMITH BARNEY TO HAVE THE LIMITED TRADING AUTHORITY FROM HISS ACCOUNT. HE WAS TOLD HE HAD TO WRITE A LETTER AND GIVE A REASON, OTHER- WISE HE WOULD NEVER HAVE WRITTEN A LETTER. IN THE LETTER HE STATED SPECIFICALL Y THAT THE PURPOSE OF THE LETTER WAS TO REMOVE THE DISCRETION BECAUSE HE WAS DEPOSITING $200,000.00 INTO THE ACCOUNT. WHILE HE DID MENTION HIS TRADING LOSS ES, HE MADE NO CLAIM FOR DAMAGES. I DON'T BELIEVE HE INTENDED TO MAKE A COMPLA INT AT ALL BECAUSE AFTER HE WROTE THE LETTER I SPOKE TO HIM AND SAID HE HAD NO HARD FEELINGS OR PROBLEMS WITH THE LOSSES.

EXCESSIVE, UNAUTHORIZED, UNSUITABLE TRADING. CLIENT SOUGHT $3,000,000 IN ACTUAL DAMAGES AND $10,000,000 IN PUNITIVE DAMAGES.

$3,000,000.00

$66,152.00

CLAIMANT AWARDED $66,152 AND WAS TOLD TO PAY THE COST OF THE ARBITRATION. NO OTHER PENALTIES, FINES OR OTHER TERMS OF DISPOSITION. SMITH BARNEY PAID THE JUDGEMENT. THE CLIENT, [CUSTOMER], CLAIMS AND ALLEGATIONS WERE WITHOUT MERIT.