Brian Colin Doherty of New York New York a stockbroker formerly registered with BGC Financial L.P. has been suspended for two years from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity according to a FINRA Office of Hearing Officers Hearing Panel Decision containing findings that Doherty engaged in a fraudulent trading scheme. Department of Enforcement v. Brian Colin Doherty Disciplinary Proceeding No. 2015047005801 (June 14, 2019).
According to the Decision, between May of 2015 and June of 2015, during the time Doherty had been associated with BGC Financial LLP in the firm’s corporate bond desk, a total of nineteen prearranged transactions were placed by him in a fraudulent manner. Evidently, corporate bonds had been bought and sold by Doherty in order to help another stockbroker, TS, who was registered with Scotia Capital USA Inc.
The Decision stated that a Scotia Capital USA Inc. proprietary account had been managed by TS, and the stockbroker was deemed a customer of Doherty while Doherty was employed by BGC Financial. Evidently, Doherty took steps to make it seem like there were real trades being placed with Scotia when in reality, the activities were illegitimate. Particularly, Doherty’s actions included displacing the bonds from the proprietary account managed by TS. Thereafter, Doherty and TS made a hidden agreement for the bonds to be repurchased by TS at a set price.
FINRA indicated that Doherty detailed his trades with the compliance division and desk manager of BGC; however, Doherty omitted significant facts which, if disclosed, could have revealed that a fraudulent scheme would be implemented by him. Either way, FINRA Office of Hearing Officers found Doherty’s manipulative and prearranged scheme violative of Securities Exchange Act of 1934 Section 10(b), Securities Exchange Commission (SEC) Rule 10b-5 as well as FINRA Rules 2010 and 2010.
Doherty was discharged by BGC Financial LP based upon allegations (and findings) set forth in FINRA’s disciplinary action against Doherty. Between June 5, 2017 and September 6, 2017, Doherty was employed by LPS Capital LLC, and since September 8, 2017, he has been associated with Whitaker Securities LLC.
