Conrad Aaron Coggeshall of Scottsdale, Arizona, a stockbroker registered with Packerland Brokerage Services Inc., was the subject of an enforcement action initiated by SEC in which the regulator barred Coggeshall based upon allegations that Coggeshall committed fraud. In the Matter of Conrad A. Coggeshall, Administrative Proceeding No. 3-20142 (May 10, 2023).
Coggeshall was accused of violating Securities Act of 1933 Section 17(a) and Exchange Act of 1934 Section 10(b), among others. A federal district court, in March 2020, ordered him to refrain from committing or helping others commit these violations in the future. As a result of this court order, the SEC decided to investigate additional steps needed to be taken for public interest.
The SEC formally served Coggeshall with a notice on November 20, 2020. After more than 20 days had passed without a response to an Order Instituting Administrative Proceedings, the SEC asked Coggeshall to provide reasons by November 8, 2021, why the regulator should not find him in default. He was warned that the case could be decided against him if he failed to respond. However, he remained silent. Following this, the Division of Enforcement asked the SEC on March 9, 2022, to declare Coggeshall in default and bar him as a stockbroker, investment advisor representative, and in other capacities in the securities industry.
Coggeshall was accused of defrauding senior investors in an entity he called BOTR, LLC, between April 2017 and May 2018. He was alleged to have lied to investors about a mergers and acquisition firm investment opportunity. He reportedly told them the investments were insured, safe, and would yield regular high-interest payments. In reality, Coggeshall allegedly misappropriated or used those individuals’ funds for personal expenses, securities trading, and paying other investors, causing substantial losses.
This is not the first time that Coggeshall has been the subject of a regulatory action concerning Coggeshall’s conduct in the securities industry. Financial Industry Regulatory Authority (FINRA) Public Disclosure shows that Coggeshall has been barred from associating with any FINRA member in any capacity because Coggeshall failed to respond to FINRA’s request for information. Letter No. 2019064840801 (August 7, 2020). FINRA’s bar followed two of its suspension letters issued on May 4, 2020, and May 28, 2020. Since Coggeshall did not ask to end his suspension within three months from the date he was notified about his suspension, this bar became automatic.
On October 2, 2020, Coggeshall was fined $150,000.00 by Arizona because Coggeshall engaged in unregistered securities transactions. In the Matter of Conrad Coggeshall, Decision No. 77726. Coggeshall was accused of carrying out business in Arizona as an investment adviser without the necessary licenses. He was also charged with fraudulent actions connected to the sale of securities and investment advisory services.
Coggeshall also pleaded guilty in a criminal case and received a five-year prison sentence on two counts of fraud schemes. (Maricopa County Superior Criminal Case No. CR2021-001384)
FINRA Public Disclosure shows that Coggeshall is referenced in three customer initiated investment related disputes concerning Coggeshall’s conduct while registered with securities broker dealers, including Cetera Advisors Network LLC. On June 17, 2021, a customer initiated investment related FINRA securities arbitration claim involving Coggeshall’s conduct was settled for $224,300.00 in damages based upon allegations that Coggeshall placed the customer in fraudulent investments for the stockbroker’s personal gain during the time that Coggeshall was registered with Cetera Advisors Network LLC. FINRA Arbitration No. 20-01487.
On May 14, 2021, a customer initiated investment related FINRA securities arbitration claim involving Coggeshall’s conduct was settled for $75,000.00 in damages based upon allegations that Coggeshall made unsuitable recommendations of direct investments when Coggeshall was registered with Cetera Advisor Networks LLC. FINRA Arbitration No. 20-01487.
Coggeshall is also referenced in a customer initiated investment related FINRA securities arbitration claim in which the customer requested compensation based upon allegations that Coggeshall made unsuitable investment recommendations during the time that Coggeshall was registered with Packerland Brokerage Services Inc. FINRA Arbitration No. 22-01978 (October 5, 2022).
Coggeshall was registered with Packerland Brokerage Services Inc. as a stockbroker from June 22, 2015, to January 12, 2018.
