Daniel Keith Beech of Charlotte, North Carolina, a stockbroker registered with Innovation Partners LLC, has been fined $10,000.00 and suspended for ten months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity because Beech made improper payments to an unregistered person while associated with Innovation Partners LLC and Western International Securities Inc. Department of Enforcement v. Daniel Keith Beech, Order Accepting Offer of Settlement, No. 2022076391701 (December 18, 2023).
According to the Order, Beech paid commissions totaling at least $636,000.00 to an individual who was required to be registered but was not. Initially, Beech and the individual shared a joint billing code, which allowed Beech to receive commissions for making securities recommendations to that individual’s customers. The regulator sated that Beech paid 75 percent of these commissions to the individual.
Later, the individual was sanctioned by FINRA for trading in a customer’s account away from his employer. Beech then entered into an agreement with the individual’s investment advisory firm to buy out the individual’s book of business. According to the AWC, this agreement called upon Beech to pay $10,000.00 upfront and then 75 percent of commissions earned from customer transactions for a decade, followed by 25 percent for five more years. Beech made these payments directly or indirectly to the individua without notifying or obtaining permission from the securities broker dealer. Therefore, he violated FINRA Rules 2010 and 2040.
FINRA Public Disclosure shows that Beech is referenced in eighteen (18) customer initiated investment related disputes concerning Beech’s conduct while associated with securities broker dealers. Beech is referenced in a civil action that was settled for $115,000.00 in damages based upon allegations that Beech made unsuitable investment recommendations. Civil Action No. 23VECV02979 (July 19, 2023).
On November 13, 2023, a customer filed a FINRA securities arbitration claim involving Beech’s conduct in which the customer requested $100,000.00 in damages based upon allegations that Beech made misrepresentations and omissions of material facts, made the unsuitable investment recommendation of bonds, and violated federal securities laws when Beech was associated with Western International Securities Inc. FINRA Arbitration No. 23-03093.
On January 5, 2024, a securities arbitration claim involving Beech’s conduct was settled for $62,000.00 in damages based upon allegations that Beech was negligent and made misrepresentations in connection with the sale of corporate bonds when Beech was associated with Western International Securities Inc. FINRA Arbitration No. 23-01014.
On February 3, 2024, a customer initiated investment related FINRA securities arbitration claim involving Beech’s conduct was settled for $70,000.00 in damages based upon allegations that Beech made unsuitable recommendations and was negligent in connection with the sale of corporate bonds during the time that Beech was associated with Western International Securities Inc. FINRA Arbitration No. 23-00061.
On March 26, 2024, a securities arbitration claim involving Beech’s conduct was settled for $28,000.00 in damages based upon allegations that Beech was negligent and misrepresented material facts about bonds. FINRA Arbitration No. 23-01843.
Beech was associated with Innovation Partners LLC in Charlotte, North Carolina from March 4, 2022, to July 23, 2024.
