Dennis Ernest Beeby of San Diego California is a stockbroker formerly registered with EDI Financial Inc. who has been fined $10,000.00 and suspended for eight months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that he sold away from his firm. Letter of Acceptance Waiver and Consent No. 2016052305501 (Mar. 23, 2018).
According to the AWC, between October of 2015 and December of 2015, oil and gas working interests had been recommended by Beeby to the firm’s customers. The oil and gas working interests, which pertained to K Corporation’s establishment of an oil & gas lease, had apparently not been offered via EDI Financial Inc. The AWC stated that a total of $700,000.00 worth of oil and gas working interests had been purchased by four EDI Financial Inc. customers.
The AWC stated that Beeby took part in the securities transactions in several ways: he recommended the oil and gas working interests to the customers; assisted customers in the completion of paperwork to invest; signed transaction documentation; and facilitated communications concerning customers’ investments. In turn, Beeby was reportedly paid $55,000.00 in commissions.
Evidently, Beeby’s private securities transactions had not been reported by him to his firm. Apparently, Beeby failed to procure the firm’s authorization to engage in the securities transactions, and as a result, violated the firm’s policies which called for written permission of the firm to be provided before the transactions were effected. FINRA found that Beeby’s conduct in that regard was violative of FINRA Rules 2010 and 3280.
FINRA Public Disclosure reveals that a customer was awarded $15,000.00 in damages according to an investment related arbitration claim concerning Beeby’s misconduct wherein Beeby was found liable for having made misrepresentations to the customer and executed unsuitable purchases of Natural Gas Direct Fund 1, LP and Puronyx common stock in the customer’s investment portfolio. FINRA Arbitration No. 09-01436 (Dec. 1, 2010).
Beeby’s registration with EDI Financial, Inc. (a firm which FINRA expelled on June 1, 2017) was terminated on August 2, 2016. He was then registered with Lightpath Capital, Inc. between August 1, 2016 and January 12, 2018. Beeby has been associated with seven different broker dealers, three of which have been expelled by securities regulators for violation of federal securities laws or are otherwise defunct.
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