Harold Lee Connell of Miami Florida a stockbroker formerly employed by CP Capital Securities is the subject of a Financial Industry Regulatory Authority (FINRA) Wells Notice where FINRA recommended that a disciplinary action be pursued against Connell alleging that he committed fraud and effected promissory notes and private placement transactions that were not suitable for customers. Wells Notice Examination #20160514937 (Feb. 22, 2018).
According to the Wells Notice, Connell apparently acted recklessly and deceptively towards customers in the course of his activities relating to promissory notes issued by CP Capital Securities; conduct violative of FINRA Rule 2020, 2010, Securities and Exchange Act of 1934 Section 10(b), and Securities Exchange Commission (SEC) Rule 10b-5. FINRA alleged that as a control person, Connell was liable for violating Securities Exchange Act of 1934 Section 20(a) as well as FINRA Rule 2010.
Further, FINRA alleged that with respect to three of the private offerings and six promissory notes transactions, Connell engaged in fraudulent interstate transactions in violation of FINRA Rule 2010, Securities Act of 1933 Sections 17(a)(2) and 17(a)()3). FINRA further suspects that Connell failed to have an adequate basis for concluding that the securities transactions were appropriate; conduct violative of FINRA Rules 2010 and 2111. The Wells Notice also stated that Connell’s purported supervisory failures were violative of FINRA Rules 2010 and 3110.
FINRA Public Disclosure reveals that Connell has been referenced in four additional regulatory actions concerning his wrongful conduct. For instance, on February 23, 2006, Connell was fined $5,000.00 by the State of Florida based upon consenting to findings that while registered with CF Capital Securities, he failed to supervise the firm’s business and ensure that records and books were maintained. Case No. 0227A-S-9/05 (Feb. 23, 2006).
Moreover, a customer filed an investment related civil action in Miami, Florida in which the customer requested $1,458,000.00 in damages based upon accusations that Connell was liable for the customer’s investment losses on promissory notes purchased through him. Civil Action No. 2016-024809-CA-01 (Oct. 24, 2016).
Since July 13, 1992, Connell has been associated with six different broker dealers, one of which has been expelled by securities regulators for violation of federal securities laws or is otherwise defunct.
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