Glenn A. Moffitt of Henderson, NV, a former general securities representative with Cambridge Investment Research, Inc., was permanently barred from association with any FINRA-registered firm in all capacities after failing to appear for on-the-record testimony in connection with FINRA’s investigation into allegations that Moffitt converted $370,000 from a customer. FINRA Letter of Acceptance, Waiver, and Consent No. 2014041600301 (Aug. 18, 2015).
According to the Acceptance, Waiver and Consent (“AWC”), FINRA, pursuant to Rule 8210, sent Moffitt a request for on-the-record testimony on July 24, 2015, pertaining to FINRA’s investigation into Moffitt’s alleged conversion of customer funds. The AWC indicates that Moffitt spoke with FINRA on July 24, 2015, and confirmed that while he had received FINRA’s request, he would not be appearing for the requested testimony at any point.
Consequently, according to the AWC, Moffitt’s failure to satisfy FINRA’s requests resulted in violations of FINRA Rule 2010 and 8210. Moffitt was barred by FINRA as a result. FINRA registered representatives like Moffitt who do not cooperate with FINRA’s investigations often face a permanent bar from practicing in the securities industry as such lack of cooperation violates FINRA’s Rule 8210 – requiring that no member or person shall fail to provide information or testimony or permit an inspection and copying of books, records, or accounts pursuant to the rule.
FINRA typically accompanies a Rule 8210 violation with a Rule 2010 violation when individuals, according to FINRA, do not appear to observe high standards for commercial honor and just and equitable principles of trade. Public disclosure records reveal that prior to being permanently barred by FINRA, Moffitt had been discharged by Cambridge Investment Research, Inc., on August 13, 2014, after his former firm alleged he stole customer funds.
Public disclosure records also reveal that on January 26, 2015, Moffitt was subject to a customer dispute in which a plaintiff alleged that Moffitt misappropriated funds from various accounts from 2011-2014, where Moffitt allegedly admitted to the misappropriation but has not repaid the money. The plaintiff alleged breach of fiduciary duty, misappropriation, constructive fraud, fraud, negligence and negligent misrepresentation, negligent hiring/training/supervision, unjust enrichment, deceptive trade practices, elder exploitation, and breach of contract. Further, the plaintiff claims that Moffitt had churned the plaintiffs account and steered the plaintiff to purchase risky and inappropriate investments.
Guiliano Law Group
If you have been the victim of securities fraud and you have a complaint, you should consult with an attorney. The practice of Nicholas J. Guiliano, Esq., and The Guiliano Law Group, P.C., is limited to the representation of investors in claims for fraud in connection with the sale of securities, the sale or recommendation of excessively risky or unsuitable securities, breach of fiduciary duty, and the failure to supervise. We accept representation on a contingent fee bas