Robert Lansing Hicks, of Irvine, California, a former owner of Finance 500, Inc., a brokerage firm headquartered in Irvine California, has been named in a customer initiated investment related arbitration claim on January 11, 2017, in which the customer requested $102,500.00 in damages based upon allegations that Hicks breached his contractual and fiduciary obligations to the customer, negligently handled the customer’s investment account, defrauded the customer, and made misrepresentations concerning direct investment products.
Financial Industry Regulatorily Authority (FINRA) Public Disclosure reveals that Hicks has been identified in two additional customer initiated investment related disputes containing allegations of Hicks’ misconduct while employed with Finance 500, Inc. Specifically, on August 24, 1998, a customer was awarded $1,777.00 in damages according to an investment related arbitration claim involving Hicks’ conduct, based upon allegations that Hicks charged the customer with excessive commissions on equity trades.
Moreover, on September 16, 2016, a customer filed an investment related arbitration claim regarding Hicks’s activities in which the customer requested $1,760,000.00 in damages based upon allegations that Hicks negligently managed the customer’s investment portfolio, breached his fiduciary duties, made misrepresentations to the customer, effected transactions which were not suitable, and defrauded the customer in reference to direct investment programs.
On December 31, 2015, Hicks was fined $25,000.00 and suspended for nine months from associating with a Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that Hicks, inter alia, failed to supervise the firm’s activities concerning the sale of securities to make sure the activities followed securities regulations, rules, and laws. Letter of Acceptance, Waiver and Consent, No. 2013036837801 (Dec. 30, 2015).
According to the AWC, FINRA found that no reasonable supervision systems and supervisory protocols were created and implemented by Hicks concerning activities involving market making in penny stocks, as well as sales of unregistered securities. FINRA found the conduct of Hicks and his firm to be violative of FINRA Rule 2010, and NASD Rules 3010(a), 3010(b), as well as 3010(d).
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