Richard Edward Bohack of Global Arena Capital Corp has been suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon allegations that Bohack failed to comply with his obligation to pay compensatory damages to a customer who prevailed in a claim containing allegations that Bohack gave bad advice and breached his fiduciary obligations to the customer. Case No. 2016051105901 (Sept. 21, 2016).
Particularly, FINRA Public Disclosure reveals that Bohack was named in a customer initiated investment related arbitration claim where the customer was awarded $50,000.00 in compensatory damages based upon Bohack being found liable on the customer’s claims that a speculative day trading strategy implemented in the customer’s account was not suitable for the customer; investment recommendations were inappropriate given the customer’s objectives for investing; the customer’s account lacked supervision; and fiduciary duties owed to the customer had been breached causing the customer to incur unwarranted losses. FINRA Arbitration No. 16-00351 (July 19, 2016).
This is not the first time that Bohack has been subject of a FINRA disciplinary action concerning his misconduct in the securities industry. Specifically, Bohack has been barred from associating with any FINRA member in any principal capacity based upon findings that Bohack failed to supervise stockbrokers, one or more of whom effected unauthorized, unsuitable or excessive trades in customer accounts. Letter of Acceptance Waiver and Consent No. 2014043542409 (Sept. 14, 2015).
According to the AWC, Bohack did not respond to red flags suggesting that misrepresentations were made by stockbrokers to customers concerning the performance of junk bonds. Bohack also reportedly knew about stockbrokers effecting suspicious round trip trades on a short term basis; however Bohack neglected to assess the suitability of those recommendations. Moreover, Bohack reportedly failed to assess whether stockbrokers had executed unauthorized trades in customer accounts despite Bohack having received evidence of the unauthorized trading by stockbrokers. The AWC further detailed that Bohack failed to adequately review alerts in the firm’s systems which referred to potential excessive trades by stockbrokers. Bohack supposedly did not know what constituted excessive trading and he lacked a fundamental understanding of the exception reports evidencing excessive trading. FINRA found Bohack’s failure to supervise to be violative of FINRA Rules 2010 and 3110.
Bohack’s registration with Global Arena Capital Corp has been terminated as of June 5, 2015.
