Paul Wescoe Smith, of Wayne, Pennsylvania, a stockbroker formerly registered with Bolton Global Capital, has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that he obstructed a FINRA investigation into allegations that he sold away from his firm. Letter of Acceptance, Waiver and Consent, No. 2017053266401 (June 7, 2017).
According to the AWC, Smith was terminated by Bolton Global Capital on February 14, 2017, based upon allegations that the firm received information from the Securities and Exchange Commission (SEC) confirming that Smith effected a private securities transaction outside of the firm’s auspices and without ever having notified the firm.
Smith is suspected of running a Ponzi Scheme and is presently under investigation by federal authorities.
On May 24, 2017, the Guiliano Law Group filed a civil action in arbitration before FINRA on behalf of a public customer against Bolton Global Capital for the recommendation and sale of unregistered securities, or theft, by its former registered representative, in violation of the federal securities laws and the Pennsylvania Securities Act of 1972, and for common law fraud, breach of fiduciary duty, the failure to supervise, and the violation of the Pennsylvania Unfair Trade Practices and Consumer Protection Act.
The AWC stated that FINRA launched an investigation into Smith’s activities, and requested in March and April of 2017 that documents and information be provided by Smith in reference to the allegations of Smith’s misconduct. Apparently, these requests went unanswered. Particularly, FINRA staff was reportedly informed by Smith’s counsel that he would at no point be providing the documents and information requested by FINRA. Consequently, FINRA found that Smith was uncooperative in the investigation; conduct violative of FINRA Rules 2010 and 8210. Smith was barred as a result.
FINRA Public Disclosure reveals that Smith has been identified in four customer initiated investment related disputes containing allegations of his misconduct while he was associated with Bolton Global Capital, Delta Equity Services Corporation, Prudential Bache, and Janney Montgomery Scott, Inc.
Specifically, on September 13, 2011, a customer filed an investment related written complaint involving Smith’s conduct, in which the customer requested $25,000.00 in damages based upon allegations that Smith utilized the customer’s margin inappropriately and employed investment strategies that had not been adequately communicated to the customer. Subsequently, on April 12, 2017, a customer filed an investment related written complaint regarding Smith’s activities, wherein the customer requested $130,000.00 in damages based upon allegations that he effected unauthorized private securities transactions that prevented the customer from retrieving the repayment of funds once requested.
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