Bradley Carl Mascho of Frederick Maryland a stockbroker formerly associated with Western International Securities has been barred by Securities and Exchange Commission (SEC) from being a stockbroker or investment adviser representative or otherwise associating with any securities broker dealers or investment advisories according to an SEC Order based on findings that Mascho pled guilty to conspiracy to commit securities fraud. In the Matter of Bradley C. Mascho Administrative Proceeding File No. 3-19637 (Jan. 7, 2020).
The Order noted that Mascho had been permanently enjoined from committing future violations of Securities Exchange Act of 1934 Section 10(b), SEC Rule 10b-5 and Securities Act of 1933 Sections 5(a), 5(c) and 17(a). SEC v. Bradley C. Mascho Civil Action No. 8:17-cv-2453-PX (D. Md. Dec. 23, 2019).
The Complaint filed against Mascho by SEC had alleged that he was a participant in a fraud which DJBennett owner Dawn J. Bennett engineered. At least $20,000,000.00 in funds were allegedly accumulated from forty-six investors via Dawn J. Bennett and Mascho for investments in DJBennett convertible and promissory notes. SEC argued that this was an unregistered offering by Mascho and Dawn J. Bennett in which misrepresentations and omissions were made concerning DJBennett’s operating performance and financial condition.
The Complaint also indicated that false or misleading statements were made concerning the use of investors’ proceeds as well as the risks of investing. SEC also contended that Ponzi-like payments were made in this scheme rather than investors’ funds being used as promised.
Mascho subsequently pled guilty to one count of conspiracy to commit securities fraud. United States v. Bradley C. Mascho Criminal Action No. 8:17-cr-472-PX (D. Md. June 18, 2018). The stockbroker was sentenced to 30 months behind bars.
Financial Industry Regulatory Authority (FINRA) Public Disclosure confirms that Mascho has been identified in sixteen customer initiated investment related disputes concerning accusations of his misconduct while employed by Western International Securities. On November 6, 2019, a customer initiated investment related arbitration claim concerning Mascho’s activities was resolved for $202,271.14 in damages founded on accusations that a fiduciary duty was breached relating to Mascho’s recommendations of unregistered securities to the customer while employed by Western International Securities. FINRA Arbitration No. 19-00748 (Nov. 6, 2019). According to the claim, misrepresentations and omissions were made by Mascho and the stockbroker’s securities transactions failed to be suitable.
Mascho has also been referenced in a customer initiated investment related arbitration claim which was settled for $88,500.00 in damages supported by allegations that the Western International Securities customer had been poorly advised by Mascho with regard to exchange traded fund and promissory note sales. FINRA Arbitration No. 19-00977 (Dec. 4, 2019). The claim alleges that the customer had been defrauded and that the stockbroker neglected to comply with his fiduciary duty.
Mascho is the subject of another customer initiated investment related arbitration claim where the customer sought $500,000.00 in damages based upon accusations that promissory note recommendations were unsuitable for customer and had caused the customer to experience losses. FINRA Arbitration No. 20-00034 (Mar. 9, 2020). On March 17, 2020, an additional customer filed an investment related arbitration claim in reference to Mascho’s conduct where the customer sought $180,000.00 in damages based upon accusations of bad advice by Mascho as it pertained to the customer’s investments in promissory notes. FINRA Arbitration No. 20-00702.
Mascho’s registration with Western International Securities has been terminated as of December 5, 2017.