Daniel Keith Beech of Charlotte, North Carolina, a stockbroker registered with Innovation Partners LLC, is the subject of an enforcement action initiated by Financial Industry Regulatory Authority (FINRA) in which the regulator is seeking sanctions against Beech based upon allegations that Beech improperly paid commissions to an unregistered person. Department of Enforcement v. Daniel Keith Beech, Disciplinary Action No. 2022076391701 (April 30, 2023).
The enforcement action stems from a series of events spanning from May 2016 to January 2023. During this period, Daniel Keith Beech was associated with securities broker dealers, including Western International Securities Inc. and Innovation Partners LLC. Allegations center around Beech’s financial dealings with Individual A, a person who was not registered with FINRA but was actively involved in the solicitation of brokerage customers and providing customer support in transactions involving securities.
The relationship between Beech and Individual A allegedly dates back to their time at Firm One, where Beech began working as Individual A’s sales assistant. Their association reportedly continued as they moved together to Firm Two and subsequently after Individual A’s registration with FINRA was terminated. Despite this termination and the absence of registration with any FINRA member firm, Individual A allegedly remained involved in soliciting new investors and attending meetings with Beech’s customers. During this period, Individual A supposedly had a significant influence over a customer base mainly consisting of Farsi-speaking individuals, a community he catered to through his Farsi-language television and radio shows.
According to the Complaint, Beech paid approximately $900,000.00 in commissions to Individual A from the revenues generated through transactions in certain customer accounts. These payments were supposedly part of an agreement to purchase Individual A’s book of business. The Complaint stated that these payments were made without permission from a FINRA-member securities broker dealer. Therefore, Beech allegedly violated FINRA Rules 2040 and 2010.
Public Disclosure shows that Beech is referenced in seventeen (17) customer initiated investment related disputes concerning Beech’s conduct while associated with securities broker dealers. On April 17, 2023, a customer filed an investment related FINRA securities arbitration claim involving Beech’s conduct in which the customer requested $5,000.00 in damages based upon allegations that Beech was negligent and made misrepresentations of material fact in connection with the sale of corporate bonds when Beech was associated with Western International Securities Inc. FINRA Arbitration No. 23-01014.
On July 3, 2023, another customer filed an investment related FINRA securities arbitration claim involving Beech’s conduct in which the customer requested $5,000.00 in damages based upon alleged misrepresentation and negligence in connection with the sale of corporate bonds at Western International Securities Inc. FINRA Arbitration No. 23-01843.
On September 14, 2023, a different customer filed an investment related FINRA securities arbitration claim involving Beech’s conduct in which the customer requested $516,000.00 in damages based upon allegations that Beech breached his fiduciary duty and breached a contract in connection with the sale of corporate bonds. FINRA Arbitration No. 23-20467.
On November 13, 2023, an additional customer filed an investment related FINRA securities arbitration claim involving Beech’s conduct in which the customer requested $100,000.00 in damages based upon allegations that Beech made unsuitable recommendations, violated federal securities laws, and made misrepresentations and omissions about corporate debt products. FINRA Arbitration No. 23-03093.
On June 15, 2022, the United States Securities & Exchange Commission brought an action against Western International Securities, Inc., and several of its associated persons for among other things, the violation of Reg BI. United States Securities & Exchange Commission v. Western International Securities, Inc., Case 2:22-cv-04119 (C.D. Cal. June 6, 2022).
Beech was associated with Western International Securities Inc. in Westlake Village, California from May 10, 2016, to March 9, 2022. He has been associated with Innovation Partners LLC in Charlotte, North Carolina since March 4, 2022.
