Daniel Lee Pancake, of Reno, Nevada, a stockbroker formerly registered with Calton & Associates, Inc., has been permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based on allegations that he waffled and did not provide a response to FINRA’s request for information pertaining to Pancake’s business activities. Letter No. 2014043679001 (Jul. 21, 2015).
This is not the first time that Pancake has been suspended by FINRA for allegations of his wrongdoing. Particularly, Pancake was suspended from associating with any FINRA member in any capacity based upon consenting to findings that he failed to adequately supervise a representative, CO, who made unsuitable recommendations to a customer concerning investments in inverse-leveraged exchange traded funds. Apparently, CO held customers’ positions in funds longer than the prospectuses indicated that the positions were intended for. The AWC stated that CO, between October of 2010 and October of 2012, consistently effected transactions that were not suitable for customers due to the lack of Pancake’s supervision. FINRA found that Pancake’s conduct was violative of FINRA Rule 2010 and NASD Rule 3010.
The AWC also revealed that from June of 2009 to December of 2012, Pancake failed to create and implement supervisory processes pertaining to sales activities that registered representatives partook in. Particularly, the AWC stated that at least three thousand transactions were effected by CO without any level of supervision by a futures and options principal. FINRA found Pancake’s conduct in this regard to be violative of FINRA Rules 2010 and NASD Rule 3010.
FINRA Public Disclosure reveals that a customer initiated investment related civil action involving Pancake’s conduct was settled for $45,000.00 in damages based upon allegations that Pancake, while associated with Great Circle Financial, made unsuitable investment recommendations to the customer regarding exchange traded fund products.
Pancake was terminated from Calton & Associates, Inc. on December 3, 2014.
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