Francis Joseph Velten Jr. of New Port Richey, Florida, a stockbroker formerly registered with Ameriprise Financial Services LLC, has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity because he failed to cooperate in a FINRA investigation. Case No. 2020066032801 (July 19, 2022).
According to the Default Decision, Velten was associated with Ameriprise Financial Services LLC from January 27, 2020, to April 28, 2020. Velten ultimately resigned from Ameriprise after he was questioned about his trading for elderly clients at Summit Brokerage Services Inc. FINRA began an investigation into the allegations that Velten had flipped and churned customer accounts while he was associated with Summit Brokerage Services Inc. Velten was accused of selling away from his firm and causing the customers to experience surrender charges while Velten received commissions.
On March 31, 2022, Velten was sent the First Notice of Complaint and the Complaint itself by FINRA with regard to its investigation. On May 2, 2022, Velten was sent a Second Notice of Complaint and the Complaint again. He was required to respond to the Complaint by May 19, 2022. He failed to respond by that date. As a result, a Default Decision was entered against him where FINRA found that he violated FINRA Rules 2010 and 8210.
Public Disclosure shows that Velten is referenced in nine total customer initiated investment related disputes concerning Velten’s activities while associated with securities broker dealers, including Summit Brokerage Services Inc. On February 15, 2017, a customer initiated investment related complaint involving Velten’s conduct was settled for $14,900.00 in damages based upon allegations that Velten made unsuitable transactions when he was associated with Summit Brokerage Services Inc.
Velten is also referenced in a customer initiated investment related FINRA securities arbitration claim that was settled for $65,000.00 in damages based upon allegations that Velten caused the loss of a guaranteed income benefit and death benefit on a variable annuity at Summit Brokerage Services Inc. FINRA Arbitration No. 13-00813 (March 24, 2014).
On February 4, 2015, another arbitration claim involving Velten’s activities was settled for $10,000.00 in damages based upon allegations that Velten made unsuitable transactions in connection with the recommendation and sale of variable annuities when Velten was associated with Summit Brokerage Services Inc. FINRA Arbitration No. 15-00560.
