Lawrence Randolph Roberson, of Detroit, Michigan, a stockbroker with Capital City Securities, LLC, was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity after consenting to findings that he made fraudulent misrepresentations and omissions concerning the sale of a bond investment to a customer. Letter of Acceptance, Waiver and Consent, No. 2016050182001 (July 19, 2016).
According to the AWC, in July of 2015, Roberson made recommendations and ultimately sold a bond debenture, titled WMG 2015 Bond Debenture, to a customer, TT. The AWC stated that the investment was issued through Wealth Management Group, Inc., which was Roberson’s investment advisory. TT was apparently one of Roberson’s clients.
The AWC stated that the terms of the bond investment with TT were for a $40,000.00 investment to be made by TT in return for the principal repayment of $40,000.00 plus twenty-five percent interest. In reality; however, the WMG Bond Debenture did not exist as Roberson claimed. Roberson reportedly took TT’s money and paid Roberson’s personal expenses, rather than utilizing the funds for the stated purpose.
FINRA found that Roberson’s aforementioned conduct, namely his representation of a WMG Bond Debenture that was not existent, constituted willful violations of Securities Act of 1934 Section 10(b), SEC Rule 10b-5, as well as FINRA Rules 2010 and 2020. Additionally, Roberson’s taking of the client’s funds was found by FINRA to constitute conversion of customer funds. As such, Roberson was found by FINRA to have violated FINRA Rule 2010.
The AWC noted two additional occasions in which Roberson was sanctioned for related misconduct. In August of 1988, Roberson was fined $1,000.00 and censured by the State of Michigan after being found to have falsified statements concerning IRS tax deductions in connection with a limited partnership investment.
In another case, in May 2016, Roberson’s investment advisor registration was suspended by the State of Michigan after Roberson apparently obstructed Michigan’s evaluation of Wealth Management Group, Inc. The State of Michigan found that Roberson did provide requisite information in order to be in compliance with Michigan’s Securities Act Section 411(4), MCL 451.2411(4).
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