negligence, breach of fiduciary duty, breach of contract, misrepresentations, and violations of FINRA's conduct rules

$49,980.00

$37,485.00

negligence, breach of fiduciary duties, fraudulent misrepresentation, and breach of contract

$220,000.00

$120,450.00

August 2016 to March 2019 - Unsuitable recommendations, Roop's recommendations, misrepresentations, and misleading statements were in violation of FINRA Rules of Conduct 2110, 2111 and 2120

$200,000.00

$37,500.00

North Carolina Securities Division

The Securities Division alleged violations of 18 NCAC 06A .1414(a) for failure to maintain proper records, making one or more trades without a proper power of attorney, and receiving commission for one or more trades for out-of-state customers. The Securities Division further alleged a violation of N.C. Gen. Stat. §78C-18(d) and 18 NCAC 06A .1703 for failure to timely update the U-4 with an OBA for a business that was non-operation.

Settled through Consent Order

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

$12,500.00

Mr. Roop chose to settle this action in order to avoid further delay of registration. The Penalty was $12,500 and the Investigative Costs were $82,500, for a total payment of $95,000.

Clients filed a complaint with the state of North Carolina alleging Improper Recommendations and Suitability issues.

Unsuitable Investments, Breach of Contract Failure to supervise, breach of fiduciary duty

$14,999.00

UNSUITABLE AND OVERCONCENTRATED RECOMMEDATIONS

$500,000.00

$25,000.00

AS THE OWNER OF THE PRACTICE I WAS REQUIRED TO USE A JOINT REPRESETATIVE NUMBER ON ALL BUSINESS WRITTEN BY A REGISTERED REPRESENTATIVE IN MY BUSINESS PRACTICE. I DID NOT MEET WITH OR PROVIDE RECOMMEDATIONS TO THIS CLIENT.

Client stated in email to representative that he was not told that the investment was illiquid. This was not a written complaint to the firm it is from an email to registered representative. The product was purchased in November of 2013.

$10,000.00

REP STATES HE HAD SEVERAL CONVERSATIONS WITH CLIENT AND THE FACT THAT THE PRODUCT BEING BOUGHT WAS ILLIQUID. CLIENT WAS PROVIDED WITH PPM AND SUBSCRIPTION DOCUMENTS WHICH PLAINLY STATE THE PRODUCT IS NON-LIQUID. CLIENT WANTED INCOME WHICH WAS PROVIDED BY PRODUCT. PRODUCT WAS PAYING DIVIDEND UP TO APRIL 2020 WHEN IT STOPPED DUE TO CURRENT ISSUES.

Mr. Roop failed to conduct reasonable due diligence and recommended an investment strategy comprised of speculative and unsuitable securities pursuant to material misrepresentations and omissions offered by Cottonwood and GPB Capital Holdings, LLC

$65,000.00

$17,500.00

Kalos Capital, Inc. determined as a business judgment that it was in the firm's best interests to resolve the dispute rather than incur the time, disruption, and legal expenses associated with a protracted arbitration proceeding.

Clients allege unsuitable investments and sale of securities by a rep that was not properly registered in the State of Alabama. Approximate time period of all investments was January 2011 - July 2014.

$100,000.00

$90,000.00

CUSTOMERS ALLEGE MISREPRESENTATION AND OMISSION OF MATERIAL FACTS AND EXCESSING TRADING FROM DECEMBER 2004 TO MAY 2008. DAMAGES ARE NOT SPECIFIED.

$25,000.00

I HAVE NOT BEEN GIVEN A COPY OF THE ALLEGATIONS, SO HAVE NO RESPONSE AT THIS TIME.

CLIENTS OPENED ACCOUNT IN 2002 WITH ROOP AND DURING THE COURSE OF THEIR FIVE YEAR RELATIONSHIP, ROOP WAS AT THREE FIRMS (LEGG MASON, BANC OF AMERICA SECURITIES, AND WACHOVIA). CLIENT ALLEGES NEGLIGENT MISREPRESENTATION, FRAUDULENT MISREPRESENTATION, FRAUD IN THE INDUCEMENT, UNSUITABILITY, BREACH OF CONTRACT, AND BREACH OF FIDUCIARY DUTY. ROOP DENIES ALL ALLEGATIONS.

$750,000.00

$135,000.00

DURING THE TIME I WORKED WITH THESE CUSTOMERS, THEY MAINTAINED ACCOUNTS THAT CONSISTED OF CONSOLIDATED INDIVIDUAL STOCKS. THE RISKS OF LARGE INDIVIDUAL HOLDINGS WERE DISCUSSED AT REGULAR MEETINGS WITH CUSTOMERS. ADDITIONALLY, MUTUAL FUNDS, CLOSED END FUNDS AND OPTIONS WERE ALSO IN THEIR ACCOUNT. WE COMMUNICATED IN PERSON AND VIA PHONE. MEETINGS WERE HELD AT THEIR HOME AND OCCASIONALLY ALSO INCLUDED THEIR CPA. WHEN THE MARKET WAS MOST VOLATILE IN 2008, WEEKLY MEETINGS OCCURRED WITH CUSTOMER WHREE THEY WERE UPDATED ON MARKET AND ACCOUNTS. ALL PAPERWORK WAS COMPLETE AND APPROVED BY BRANCH MANAGER. ADDITIONALLY, THE BRANCH MANAGER ALSO MADE CALLES TO THE CUSTOMERS TO VERIFY THEIR KNOWLEDGE OF THE ACCOUNTS. ***WELLS FARGO ADVISORS SETTLED FOR $52,500. BANK OF AMERICA STILL PENDING.*** ***BANK OF AMERICA SETTLED FOR $135,000.***

CLIENT CLAIMS UNSUITABLE EQUITY PRODUCTS DURING THE PERIOD 01/2005 TO 07/2008. DAMAGES UNSPECIFIED.

$38,000.00

DURING THE TIME I WORKED WITH [CUSTOMER] HE MAINTAINED ACCOUNTS THAT CONSISTED OF STOCKS BONDS CLOSED END FUNDS MUTUAL FUNDS & OPTIONS WE HAD REGULAR REVIEWS IN PERSON SEVERAL TIMES A YR WE CORESPONDED OVER PHONE ON A REGUALAR BASIS TO DISCUSS HIS ACCTS, INCOME, & INVESTMENT PERFORMANCE WHILE AT BAI MY MGR [OTHER FIRM EMPLOYEE] ALSO SPOKE TO [CUSTOMER] RE: HIS ACCTS & RISK TOLERANCE, [CUSTOMER] HAS NOT ALLEDGED ANY SPECIFIC IMPROPRITIES BUT ONLY COMPLAINS HIS ACCT VALUE DECLINED.

CLIENT ALLEGED UNSUITABLE OPTIONS TRADES PLACED IN HIS ACCOUNT. DAMANGES UNSPECIFIED BUT BELIEVED TO EXCEED $5000 (07/18/2008 - 01/20/2009)

$85,000.00

PROPER FORMS AND DISCLOSURES WERE IN PLACE & APPROVED BY TIM BERSHEA (BOM). NO COMMUNICATION OR CORRESPONDENCE WAS REQUESTED OF J.P. ROOP AT ANY TIME REGARDING COMPLAINT. CLIENT REQUESTED ACCT TRANSFER TO A DIFFERENT WACHOVIA BROKER IN BIRMINGHAM AL IN OCT 2008 TO BE CLOSER TO HIS CPA. ALL TRANSACTIONS WERE DONE AT THE FULL KNOWLEDGE, CONSENT AND UNDERSTANDING OF THE CLIENT. PHONE CALLS TO WACHOVIA BY J.P. ROOP REQUESTING INFORMATION REGARDING THIS COMPLAINT AND ITS STATUS WERE NEVER TAKEN OR RETURNED.

MARKET CRASH IN 2008 CAUSED LARGE LOSSES TO CLIENT'S PORTFOLIO. CUSTOMER CLAIMED SHE WAS UNAWARE OF RISK.

$137,703.00

$56,000.00

FROM THE TIME OF THE COMPLAINT ALL OF THE PROPER DISCLOSURES AND FORMS WERE IN PLACE. WACHOVIA NEVER REQUESTED ANY INFORMATION FROM ME EVEN AFTER I ASKED WHAT THEY MAY NEED FROM ME TO HELP DEFEND THE COMPLAINT. I WAS NEVER PART OF OR ASKED TO BE INVOLVED IN ANY DISCUSSIONS ABOUT THIS CASE.