Brenda Ann Smith (also known as Brenda Smith Peterman) of West Conshohocken Pennsylvania a stockbroker and principal formerly registered with CV Brokerage Inc. has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that Smith neglected to cooperate with FINRA personnel during an investigation into accusations of (1) Smith engaging in private securities transactions while she was employed with the securities broker dealer and (2) Smith making false or misleading statements to customers regarding investments executed outside the firm’s auspices. Letter of Acceptance, Waiver and Consent No. 2017052325901 (July 2, 2019).
According to the AWC, in May of 2019, an investigation had been initiated by FINRA concerning Smith’s misrepresentations relating to an investment fund. The regulator indicated that potential false or misleading statements were made by Smith when she was engaging in private securities transactions. To this effect, on May 23, 2019, a request had been made by FINRA under Rule 8210 for Smith’s information and documentation.
The AWC stated that the legal counsel for Smith corresponded with FINRA, relaying that Smith understood the nature of the request but would not be complying with it at any point. FINRA concluded that Smith’s failure to produce the information and documentation was violative of FINRA Rules 2010 and 8210. Consequently, Smith was barred from the securities industry.
This is not the first time that Smith has been sanctioned by a securities regulator for misconduct. In particular, Smith was fined $5,000.00 and suspended by FINRA in all capacities supported by allegations that she failed to make financial disclosures to the regulator that were required of her under FINRA Rules 2010, 1122 and FINRA By-laws Article V Section 2(c). Letter of Acceptance Waiver and Consent No. 2012034900402 (Jan. 9, 2014).
FINRA Public Disclosure also reveals that Smith is the subject of a customer initiated investment related arbitration claim in which the customer requested $3,341,500.00 in damages founded on accusations that while Smith was associated with CV Brokerage, the customer’s funds had been converted; contractual and fiduciary obligations were breached; the customer was defrauded; and transactions ran afoul of Pennsylvania Uniform [Fraudulent Transfer] Voidable Transactions Act Section 5104. FINRA Arbitration No. 18-03955 (Dec. 11, 2018).
Smith’s registration with CV Brokerage Inc. has been terminated as of June 14, 2019 based upon the allegations of Smith’s misconduct as referenced within FINRA’s disciplinary action against her.
