Erin Lynn Verespy of Trumbull Connecticut a stockbroker formerly registered with HD Vest Investment Services has been issued a Cease and Desist Order by the Banking Commissioner of the State of Connecticut founded on allegations of Verespy engaging in outside business activities, failing to disclose lawsuits, and borrowing funds from a customer of HD Vest without the securities broker dealer’s permission. Case No. NRCDF-20-8507-S (June 25, 2020).
According to the regulatory action, the stockbroker took part in an outside business activity during the time that she was associated with HD Vest. The securities broker dealer was not notified about this activity. The Commissioner also alleges that Verespy neglected to disclose that she was the subject of civil litigation concerning a customer residing in Connecticut.
The regulatory action also alleges that a customer’s funds had been borrowed by Verespy without their consent and without Verespy having notified HD Vest Investment Services. Connecticut Banking Commissioner intends to fine her and revoke her stockbroker and investment adviser representative registrations.
FINRA Public Disclosure reveals that Verespy has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity supported by findings that she failed to cooperate with a FINRA investigation into accusations of her misappropriating funds belonging to a customer of HD Vest Investment Services. Letter of Acceptance Waiver and Consent No. 2018058108001 (Apr. 15, 2019).
According to the AWC, FINRA was made aware from HD Vest Investment Services that Verespy had been sued in an investment-related civil action. The regulator learned at that time that Verespy was accused of misappropriating funds belonging to a customer who received financial advisory services from her.
FINRA stated that on March 11, 2019, Verespy was instructed to provide recorded testimony. She was required under Rule 8210 to cooperate in FINRA’s investigation by making an appearance and testifying on April 5, 2019. Verespy refused to cooperate. Her conduct violated FINRA Rules 2010 and 8210.
FINRA Public Disclosure confirms that a customer initiated investment related civil action involving Verespy’s activities was resolved for $1,000,000.00 in damages based upon allegations of misappropriation and misuse of funds by Verespy when she was their financial advisor and bookkeeper. Civil Action No. FBT-CV18-5035610-S (Jan. 16, 2019).
Verespy was registered with HD Vest Investment Services from August 19, 1998 to March 27, 2019.