William Christian Gennity, of New York, New York, a stockbroker formerly registered with Alexander Capital, L.P., has been identified in a Securities and Exchange Commission (SEC) Complaint on February 2, 2017, in which the SEC has pursued sanctions against Gennity based upon allegations that he committed fraudulent stock transactions; conduct violative of Securities Act of 1934 Section 10(b), SEC Rule 10b-5, and Securities Act of 1933 Section 17(a).
Gennity has also been named in a Notice of Proposed Agency Action by the Office of Montana State Auditor, Commissioner of Securities and Insurance, who sought to revoke Gennity’s securities registration based upon allegations including, inter alia: fraud, excessive fees, unsuitable investment recommendations, and the unauthorized and excessive trading in customer accounts concerning equity products. SEC 2016-106 (Aug. 2, 2016).
According to the Notice, Gennity, inter alia, effected fraudulent securities purchases and sales in a customer’s individual and business account between April of 2013 and April of 2014. The Notice stated that Gennity excessively traded and churned the customer’s account and executed transactions on margin that the customer did not consent to. The customer reportedly never provided Gennity with authorization to exercise discretion in the customer’s account prior to transactions having been effected. Moreover, Gennity was alleged in the Notice to have effected unsuitable transactions, charged fees that were not reasonable, and made omissions and misstatements in the course of his deceptive business activities. Consequently, the Notice alleged that Gennity’s conduct was violative of Montana Code Ann. Section 30-10-301 as well as Admin R. Mont. 6.10.401(1).
Financial Industry Regulatory Authority (FINRA) Public Disclosure reveals that Gennity has been identified in four customer initiated investment related disputes regarding allegations of his misconduct while he was associated with Alexander Capital L.P. and First Standard Financial Company. Specifically, on September 24, 2014, a customer initiated investment related written complaint involving Gennity’s conduct was settled for $14,900.00 in damages based upon allegations that he churned the customer’s investment account and concentrated the customer’s over-the-counter equity holdings in an unsuitable manner.
On April 18, 2016, another a customer filed an investment related written complaint involving Gennity’s conduct, in which the customer requested $660,000.00 in damages based upon allegations that he charged the customer with excessive commissions and traded over-the-counter equities in an excessive manner despite the products having been unsuitable for the customer. Further, on November 14, 2016, a customer initiated investment related complaint involving Gennity’s conduct was settled for $12,029.52 in damages based upon allegations that he effected stock trades in the customer’s account without authorization ever having been provided from the customer.
Gennity has been registered with First Standard Financial Company LLC since October 13, 2014. Since October 14, 2005, Gennity has been associated with nine different broker dealers, six of which have been expelled by securities regulators for violation of federal securities laws or are otherwise defunct.
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