David William Locy, of Lakeland, Florida, a stockbroker formerly registered with Brookstone Securities, Inc., was suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that he did not provide FINRA with information concerning his compliance with obligations to pay compensatory damages to a customer pursuant to an investment related arbitration award. Case No. 15-02268 (June 19, 2017).
According to the FINRA Arbitration Award, Locy and Brookstone Securities, Inc. were liable for $31,276.98 in compensatory damages to be paid to a customer based on findings that Locy, inter alia, made investment related misrepresentations to the customer, breached his contractual duties, breached his fiduciary obligations, negligently handled the customer’s investment account, effected unauthorized and unsuitable trades in the customer’s investment account, and churned the customer’s securities portfolio. By not complying with his legal obligations to the customer, FINRA found that he violated FINRA Rule 9554 as well as FINRA By-Laws Article VI, Section 3.
Locy has been sanctioned six additional times by FINRA for related misconduct. Specifically, on May 11, 2016, FINRA revoked Locy’s securities registration for failing to abide by his obligations to pay $28,657.93 in fines imposed by FINRA pursuant to a Decision & Order of Offer of Settlement, Case No. 2007011413501 (Sept. 27, 2011). In that matter, Locy was censured and fined by FINRA based upon findings that Locy failed to supervise a registered representative who made unsuitable recommendations concerning promissory notes, warrants, bridge loans, and equities; conduct violative of FINRA Rules 3010(A), 3010(b), 2010 and NASD Rule 2110.
Locy was also sanctioned on October 9, 2012, for failing to pay $25,000.00 in fines imposed by FINRA pursuant to a Letter of Acceptance, Waiver and Consent, FINRA Case No. 2009019837303 (May 23, 2011). In that matter, Locy was censured and fined $25,000.00 by FINRA based upon consenting to findings he failed to supervise the due diligence of third-party private placement offerings effected through the firm; conduct violative of NASD Rules 3010 and 3110, as well as FINRA Rule 2010.
Moreover, on May 1, 2015, a customer was awarded $325,000.00 in damages according to an investment related arbitration claim involving Locy’s misconduct, based upon findings of unauthorized trading, suitability, churning, breach of fiduciary duty, negligence, and failure to supervise securities activities. Case No. 13-02069 (May 1, 2015).
FINRA Public Disclosure confirms that all the broker dealers in which Locy has been associated have been expelled by securities regulators for violation of federal securities laws or are otherwise defunct.
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