Initiated By
FINRA
Allegations
NASD RULES 2110, 2310: WRIGHT MADE UNSUITABLE RECOMMENDATIONS OF PRIVATE PLACEMENTS TO CUSTOMERS. WRIGHT'S SALE OF A HIGHLY RISKY INVESTMENT IN A STARTUP FIRM WITH NO SIGNIFICANT ASSETS, NO CURRENT CASH FLOW AND NO PRIOR OPERATING HISTORY WAS INCONSISTENT WITH THE RETIREMENT/INCOME NEEDS OF HIS CUSTOMERS. FOR THE CUSTOMERS, THE INVESTMENTS WERE UNSUITABLE BECAUSE OF THEIR AGE (LATE 50S TO EARLY 60S), HEALTH ISSUES, MODERATE TO CONSERVATIVE RISK TOLERANCE, LIMITED INVESTMENT EXPERIENCE, FINANCIAL RESOURCES AND THE NEED TO PRESERVE THEIR CAPITAL DURING THEIR RETIREMENTS. THE CUSTOMERS HAD NO INTENTION TO RETURN TO THE FULL TIME WORK FORCE AND THEIR RETIREMENT FUNDS WERE NEEDED TO SUPPORT THEM IN THEIR RETIREMENTS. THE CUSTOMERS PURCHASED $200,000 OF THE INVESTMENT AND LOST APPROXIMATELY $181,117 OF THEIR INVESTMENT FOR WHICH WRIGHT RECEIVED $16,800 IN GROSS COMMISSIONS. FOR SOME OF THESE CUSTOMERS, IT WAS A SIGNIFICANT INVESTMENT FOR THEIR RETIREMENT FUNDS.
Resolution
Acceptance, Waiver & Consent(AWC)
Sanctions
Civil and Administrative Penalty(ies)/Fine(s)
Amount
$25,000.00
Sanctions
Restitution
Amount
$144,117.00
Sanctions
Suspension
Registration Capacities Affected
ANY CAPACITY
Duration
TWO YEARS
Start Date
11/5/2012
End Date
11/4/2014
Regulator Statement
WITHOUT ADMITTING OR DENYING THE FINDINGS, WRIGHT CONSENTED TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS; THEREFORE HE IS FINED $25,000, SUSPENDED FROM ASSOCIATION WITH ANY FINRA MEMBER IN ANY CAPACITY FOR TWO YEARS AND ORDERED TO PAY RESTITUTION OF $144,117, PLUS INTEREST, AFTER SETTLEMENTS. THE FINE AND RESTITUTION SHALL BE DUE AND PAYABLE EITHER IMMEDIATELY UPON REASSOCIATION WITH A MEMBER FIRM FOLLOWING THE TWO YEAR SUSPENSION, OR PRIOR TO ANY APPLICATION OR REQUEST FOR RELIEF FROM ANY STATUTORY DISQUALIFICATION RESULTING FROM THIS OR ANY OTHER EVENT OR PROCEEDING, WHICHEVER IS EARLIER. THE SUSPENSION IS IN EFFECT FROM NOVEMBER 5, 2012 THROUGH NOVEMBER 4, 2014.