Thomas J. Brenner, Jr., of Orrville, Ohio, a stockbroker formerly registered with First American Securities, Inc., has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that he failed to provide FINRA staff with testimony in regard to his private placement sales activities. Letter of Acceptance, Waiver and Consent, No. 2017053328101 (July 10, 2017).
According to the AWC, Brenner was registered with First American Securities in various capacities, including the firm’s president and chief executive officer until June 22, 2016. FINRA launched an investigation into his wrongdoing in reference to private placement transactions after learning that he was identified in four customer initiated investment related disputes.
Particularly, the AWC revealed that customers, many of whom were seniors located in Ohio, complained about the failure of the issuing entities to speak directly with the customers, as well as the failure to make the customers’ funds available to them via a redemption upon liquidation. Brenner reportedly knew the private placement investment issuers on a business or personal level.
The AWC stated that on June 27, 2017, FINRA staff asked Brenner to testify about the allegations of his wrongdoing. Subsequently, Brenner’s counsel responded to FINRA staff to confirm that Brenner received FINRA’s request about testifying in relation to his involvement in the private placement transactions, but would not be making any appearance in that regard. Consequently, FINRA found that Brenner’s failure to testify was conduct violative of FINRA Rules 2010 and 8210.
This is not the first time that Brenner has been disciplined by FINRA for wrongdoing relating to private placement transactions effected in customer accounts. In particular, he was fined $30,000.00, disgorged of $189,000.00 and suspended for sixteen months from associating with any FINRA member in any capacity based upon consenting to findings that he committed due diligence and suitability violations, and disseminated documents that were plagued with omissions and misrepresentations. Letter of Acceptance, Waiver and Consent, No. 20150460564 (Aug. 2016).
In particular, the AWC stated that Brenner made statements within private placement offering documents that were not warranted. Additionally, FINRA found that Brenner failed to have an adequate basis for concluding that the investments recommended were appropriate for customers. Asa a result, FINRA found Brenner’s conduct to be violative of Securities Act of 1933 Section 17(a)(2), as well as FINRA Rules 2010, 2210(d)(1), 2111 and 3110.
Brenner has been associated with five different broker dealers, one of which has been expelled by securities regulators for violation of federal securities laws or is otherwise defunct.
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