Franklin Ihendu Ogele of New York New York a former owner of Blackbook Capital LLC has been fined $5,000.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that he failed to supervise a stockbroker of the firm who placed unsuitable trades in a customer’s account. Letter of Acceptance Waiver and Consent No. 2016047619003 (June 1, 2018).
According to the AWC, from August of 2014 to June of 2015, Ogele was tasked with supervising one of the firm’s highest performing stockbrokers, PF; Philip Orezio Fatta, however, Ogele allowed PF to supervise his own trading activities. The AWC stated that Ogele neglected to detect PF’s excessive and unsuitable trading in a customer’s account as a result of his failure to supervise PF, and PF’s trading caused the customer to sustain losses.
Evidently, the turnover rate and cost-to-equity ratio in the customer’s account should have alerted the firm to PF’s misconduct so that the activities in the customer’s account could be investigated by the firm and Ogele. Evidently, PF’s misconduct persisted due to the failure of the firm to supervise PF’s activities. FINRA found that Ogele’s conduct was violative of FINRA Rules 2010 and 3110 as well as National Association of Securities Dealers (NASD) Rule 3110.
FINRA Public Disclosure reveals that Ogele is referenced in two customer initiated investment related disputes pertaining to accusations of Ogele’s misconduct. In particular, on October 29, 2015, a customer initiated investment related complaint concerning Ogele’s conduct was settled to resolve allegations including selling away, misrepresentation, breach of fiduciary duty, breach of contract, negligence, unauthorized trading, suitability, excessive trading and churning. FINRA Arbitration No. 15-02066 (Oct. 28, 2015).
FINRA expelled Blackbook Capital, LLC on June 28, 2016. Ogele has been associated with eleven different broker dealers, four of which have been expelled by securities regulators for violation of federal securities laws or are otherwise defunct.
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