Clifton Hideki Roberts (also known as Cliff H. Roberts and as Clifton Sato Roberts) of Houston Texas a stockbroker formerly registered with LPL Financial LLC has been suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity supported by findings that Roberts engaged in undisclosed outside business activities while associated with LPL Financial. Letter of Acceptance Waiver and Consent No. 2018058501501 (Aug. 14, 2020).
According to the AWC, between February of 2016 and September of 2016, Roberts was Chief Executive Officer of a company that was in the lending business. The AWC indicated that Roberts was a loan officer for the company.
During this time, LPL Financial’s written supervisory procedures prohibited stockbrokers from engaging in outside business activities without the stockbroker first notifying the securities broker dealer in writing and obtaining its written permission. LPL Financial had not been notified about Roberts’s loan officer role and actions on behalf of the outside company. The stockbroker did not have any authorization in writing from LPL Financial either.
The AWC also stated that a compliance questionnaire had been administered to Roberts by LPL Financial which called upon him to disclose his outside business activity. There was no mention of that activity on the compliance questionnaire submitted by Roberts. FINRA determined that the stockbroker’s failure to disclose his outside business activity constituted the violation of FINRA Rules 2010 and 3270.
Roberts has been identified in two customer initiated investment related disputes containing allegations of his wrongdoing at Chase Investment Services Corp. FINRA Public Disclosure confirms that a customer filed an investment related complaint regarding Roberts’s activities in which the customer sought $26,900.00 in damages founded on accusations that misrepresentations had been made to the customer concerning mutual funds. Another customer initiated investment related complaint concerning Roberts’s conduct was resolved for $40,000.00 in damages based upon allegations of investment recommendations failing to be suitable for the customer’s managed account.
On April 25, 2018, Roberts was discharged by LPL Financial for his undisclosed outside business activities. Between July 15, 2019 and September 19, 2019, he was associated with Cetera Investment Services LLC. Between October 29, 2019 and August 26, 2020, the stockbroker was associated with DH Hill Securities LLLP.
