Bradley Carl Mascho of Frederick Maryland a stockbroker formerly registered with Western International Securities Inc. is the subject of a customer initiated investment related FINRA securities arbitration claim in which the customer requested $125,000.00 in damages founded upon accusations that they had been placed into unsuitable exchange traded funds by Mascho when he was associated with Western International Securities. Financial Industry Regulatory Authority (FINRA) Arbitration No. 21-01310 (June 1, 2021).
FINRA Public Disclosure shows that Mascho has been identified in 17 additional customer initiated investment related disputes involving allegations of his wrongdoing while associated with securities broker dealers, including Western International Securities. On April 1, 2019, a customer initiated investment related FINRA securities arbitration claim involving Mascho’s activities was resolved for $300,000.00 in damages supported by accusations that Mascho made misrepresentations to the customer regarding ETFs, promissory notes, and corporate bonds. FINRA Arbitration No. 18-00968. The claim alleges that the customer received bad investment advice from Mascho at Western International Securities.
Mascho is also referenced in a customer initiated investment related FINRA securities arbitration claim that was settled for $202,271.14 in damages based on allegations of breach of fiduciary duty and unsuitable advice by Mascho at Western International Securities. FINRA Arbitration No. 19-00748 (November 6, 2019). According to the claim, unregistered securities were offered and sold by Mascho. The claim alleges misrepresentation and fraud resulting in damages on a promissory note.
On January 4, 2021, another customer initiated investment related FINRA securities arbitration claim regarding Mascho’s conduct was resolved for $305,689.00 in damages founded upon accusations that Mascho provided poor investment advice regarding promissory notes when he was employed by Western International Securities. FINRA Arbitration No. 20-00034.
Mascho is the subject of a different customer initiated investment related FINRA securities arbitration claim which was settled for $110,852.00 in damages supported by allegations that Mascho provided unsuitable investment advice to the customer. FINRA Arbitration No. 20-00702 (January 4, 2021). According to the claim, the customer purchased an inappropriate promissory note because of Mascho.
FINRA Public Disclosure also shows that Mascho has been barred from associating with any FINRA member in any capacity based on findings that he failed to comply with FINRA’s investigations concerning accusations of outside business activities, private securities transactions, and fraud during the period that he was registered with Western International Securities. Letter of Acceptance Waiver and Consent No. 2015047682403 (January 12, 2018). Mascho violated FINRA Rules 2010 and 8210 by refusing to testify regarding those allegations.
On January 7, 2020, Mascho was barred by Securities and Exchange Commission (SEC) from being a stockbroker or investment adviser representative. In the Matter of Bradley C. Mascho Administrative Proceeding File No. 3-19637. According to the Order Instituting Administrative Proceedings, Mascho consented to a final judgment in which he was permanently enjoined from violating Securities Exchange Act of 1934 Section 10(b), SEC Rule 10b-5, and Securities Act of 1933 Sections 5 and 17. Civil Action No. 8:17-cv-2453-PX.
According to SEC’s Complaint, Mascho aided and abetted Dawn J. Bennett (owner of DJBennett) in committing a $20,000,000.00 fraud. 46 investors were sold conservative and promissory notes through an offering in which DJBennett was the issuer. DJBennett’s financial condition had been fraudulently misrepresented, according to the Complaint. Omissions were allegedly made about how DJBennett operated and how risky the investments would be.
Investors were misled about how their money would be used by DJBennett. The regulator also alleges that investors’ funds were not used for their intended purpose. SEC alleges that Ponzi-like payments were made to investors in the scheme. Mascho was accused of effecting unregistered securities sales as well.
Mascho subsequently pleaded guilty to conspiracy to commit securities fraud and making false statements in violation of federal laws founded upon accusations of Mascho helping Bennett defraud investors. Criminal Action No. 8:17-cr-472-PX. He was sentenced to 30 months in prison with additional requirements, including supervised release for three years and $4,824,131.00 in restitution.
