Charles Acheson Laverty of Newport Beach California a stockbroker formerly registered with TCFG Wealth Management LLC has been issued a Decision by Financial Industry Regulatory Authority (FINRA) National Adjudicatory Council which affirmed that Laverty is barred from associating with any FINRA member in any capacity based on findings of Laverty borrowing from customers and providing false testimony to the regulator about it. In the Matter of Department of Enforcement v. Charles A. Laverty Complaint No. 2016050205901 (Dec. 22, 2020).
According to the Decision, Laverty borrowed $1,350,000.00 from two customers without having been authorized to borrow customer funds by each of the securities broker dealers that he was employed by including TCFG Wealth Management, Calton Associates Inc., UBS Financial Services Inc. and Oppenheimer Co. Inc. The stockbroker made false statements pertaining to the customer loans so that he could conceal his activities. Laverty violated FINRA Rules 3240 and 2010 for borrowing from customers.
Laverty was administered a compliance questionnaire by Calton Associates that he falsely completed. The stockbroker also completed a false heightened supervision attestation for Oppenheimer. Both of those falsehoods related to his borrowing arrangements. FINRA stated that Laverty violated FINRA Rule 2010 for failing to be forthcoming.
The Decision also revealed that Laverty provided misleading and false testimony to FINRA personnel when he testified in the regulator’s investigation. Laverty denied that he borrowed customer funds. He also neglected to make required disclosures that pertained to a Form U4. One of those disclosures consisted of a $114,456.25 judgment that had been entered against him for defaulting on a promissory note. The stockbroker’s false testimony was violative of FINRA Rules 8210 and 2010.
Laverty has been identified in four customer initiated investment related disputes regarding accusations of his misconduct during the period that he was associated with securities broker dealers including Morgan Stanley, TCFG Wealth Management, Oppenheimer, and UBS Financial Services. FINRA Public Disclosure reveals that Laverty is the subject of a customer initiated investment related complaint which was settled for $15,498.66 in damages based upon allegations of the customer’s instructions being disregarded by Laverty resulting in stock not being sold from the customer’s Morgan Stanley account.
Laverty is also named in a customer initiated investment related FINRA securities arbitration claim where the customer was awarded $1,369,320.00 in damages based upon the stockbroker and Oppenheimer being found liable on the customer’s claims including unsuitable investment recommendations and solicitation of loans from the customer. FINRA Arbitration No. 14-03220 (May 18, 2017).
Another customer initiated investment related FINRA securities arbitration claim concerning Laverty’s conduct was resolved for $375,000.00 in damages on July 11, 2017 supported by accusations of Laverty soliciting and accepting loans from TCFG Wealth Management customers. FINRA Arbitration No. 16-01270 (July 11, 2017). According to the claim, the customers had been defrauded and abused. The claim also alleges that an unsuitable investment strategy was implemented and that there was a breach of fiduciary duty by the stockbroker resulting in damages.
Laverty is additionally referenced in a customer initiated investment related FINRA securities arbitration claim which was settled for $24,999.00 in damages founded on allegations of churning and breach of fiduciary duty as it pertained to the Oppenheimer customer’s investments in master limited partnerships, exchange traded funds and mutual funds because of Laverty. FINRA Arbitration No. 18-03610 (Sept. 10, 2019). The claim alleges that trades were made on an unauthorized and unsuitable basis. The customer had also allegedly fallen victim to elder abuse and fraud.