David Michael Apted of Saint Louis Missouri a stockbroker formerly registered with Forest Securities Inc. has been discharged by the firm on February 28, 2018 based upon its accusations that (1) Apted engaged in an outside business activity without either disclosing it to the firm or obtaining its approval (2) Apted submitted fraudulent documentation to Forest Securities’ affiliate Avellino Financial Advisors Inc. (3) Apted engaged in securities related business during a time in which he we was under suspension and (4) Apted made misrepresentations or omissions to the firm when the firm had internally investigated Apted’s activities for possible misconduct. The same day, Apted was discharged by Avellino Financial Advisors Inc. based upon allegations of his submission of fraudulent documentation to the investment advisory.
Forest Securities’ accusations of Apted engaging in securities business under suspension presumably concerns his suspension from Financial Industry Regulatory Authority (FINRA). In particular, Apted was fined $10,000.00 and suspended for four months from associating with any FINRA member in any capacity based upon findings that Apted sold away from the firm and engaged in unauthorized investment related communications. Letter of Acceptance Waiver and Consent No. 2016049587401 (Oct. 20, 2017).
In particular, Apted steered customers towards investing in a venture-capital fund through Forest Securities prior to his association with the firm. Supposedly, at the time, Apted was associated with Smith Moore Co. but planned to leave that firm for Forest Securities. Evidently, Apted corresponded with investors concerning the terms and conditions of the investments; detailed costs and fees; arranged for them to complete subscription agreements; facilitated meetings between the venture-capital fund and the investors; and processed the investors’ purchases of the fund. The AWC stated that the investors ultimately contributed $300,000.00 in the fund through Apted. Apted evidently failed to inform Smith Moore about his participation in those investors’ securities transactions. The AWC stated that Apted also lied about his involvement in the activities which related to customers’ investments in the venture-capital fund. FINRA found Apted’s conduct violative of FINRA Rules 2010 and 3280.
FINRA also stated that when Apted was associated with Forest Securities, he corresponded with prospective investors about securities despite Apted’s communications not having been authorized through Forest Securities. FINRA found Apted’s conduct violative of FINRA Rule 2010 and 2210(b) in this respect. Apted was discharged by Smith Moore Co. on March 14 ,2016 supported by allegations of Apted having violating the policies of the firm by engaging in private securities transactions involving a private placement.
Apted was employed by Forest Securities Inc. between March 15, 2016 and March 16, 2019.
