Jason Hallmark of Los Angeles California fileda customer initiated investment related arbitration claim against John David Rukenbrod of Cleveland Ohio a stockbroker formerly employed by Financial America Securities Inc. where Hallmark sought $337,500.00 in damages because Rukenbrod caused the “unauthorized and allegedly fraudent transfer of 450,000 common stock shares in AMARU, Inc.,” a Chinese Penny Stock, without the customer’s consent. Financial Industry Regulatory Authority (FINRA) Arbitration No. 16-02311 (Sept. 9, 2016).
Hallmark did not sue Financial America Securities Inc., nor did Hallmark sue its clearing firm.
According to the arbitration award:
On March 28, 2017, Respondent filed a Motion to Dismiss. On March 30, 2017, the Panel issued an Order advising that it would address this motion at the evidentiary hearing. At the evidentiary hearing held on June 19, 2017, after the conclusion of the Claimant’s case-in-chief, the Panel heard oral arguments on Respondent’s March 28, 2016 Motion to Dismiss. At the hearing, the Panel granted Respondent’s Motion to Dismiss pursuant to Rule 12206 of the Code of Arbitration Procedure (“Code”).
The Panel granted Respondent’s Motion to Dismiss on the grounds that Rule 12206 limits claims to a sixyear window. The Panel found that the alleged stock theft occurred in 2007 but Claimant did not file the claim until 2016, thereby making it ineligible for FINRA arbitration.
Respondent’s Motion to Dismiss pursuant to Rule 12206 of the Code is granted by the Panel without prejudice to any right the Claimant has to file in court; the Claimant is not prohibited from pursuing his claims in a court pursuant to Rule 12206(b) of the Code. At the conclusion of the evidentiary hearing on June 19, 2017, Respondent orally submitted a motion for expungement. During the evidentiary hearing, the parties presented oral argument and evidence on Respondent’s request for expungement. Claimant participated in the expungement hearing and did not contest the expungement request.
FINRA Public Disclosure also reveals that Rukenbrod has been fined $5,000.00 and suspended from associating with any FINRA member in any capacity founded on allegations that while registered with Financial America Securities Inc., Rukenbrod engaged in managerial and supervisory activities without having been registered as a principal; conduct violative of FINRA Rule 2010 and National Association of Securities Dealers (NASD) Rule 1021. Letter of Acceptance, Waiver and Consent No. 2011025846901 (July 9, 2014).
Rukenbrod’s registration with Financial America Securities Inc. has been terminated as of November 20, 2017. Between November 1, 2016 and December 6, 2018, Rukenbrod was associated with Trustmont Financial Group, Inc. Since November 30, 2018, Rukenbrod has been employed by Invicta Capital LLC.
