Brian C. Shevland of Wayne, Pennsylvania, a stockbroker registered with MCG Securities LLC, or Merion Capital Group, has been fined $10,000.00 and suspended for one year from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity because Shevland made misrepresentations of material fact to investors. Letter of Acceptance, Waiver, and Consent No. 2019062544201 (February 1, 2024).
Shevland, while associated with MCG Securities LLC, began acting as the fund manager for two private equity funds in 2014. Between September 2016 and May 2018, he had those funds make a $20,000,000.00 investment into a Master Fund, managed by a former employer.
The AWC indicated that the stockbroker distributed documents with inaccurate performance results to the private equity fund investors. These documents relied on information from the Master Fund, which claimed exaggerated financial returns. According to FINRA, despite noticing discrepancies in the Master Fund’s financials, Shevland did not adequately investigate them and continued using these results in communications with investors. This led to overstating the performance of the funds he managed. The situation escalated when, in August 2019, the manager of the Master Fund was arrested for securities fraud, with losses to investors in the funds managed by Shevland.
For these actions, Shevland violated FINRA Rule 2010.
Shevland has been associated with MCG Securities LLC in Wayne, Pennsylvania, since April 8, 2014. He has also been registered with Bluestone Capital Management LLC in Wayne, Pennsylvania, since February 14, 2013.
