Francis Joseph Velten Jr., of New Port Richey, Florida, a stockbroker registered with Summit Brokerage Services Inc., has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity because Velten failed to provide information and documents to FINRA when it investigated possible violations of FINRA rules. Department of Enforcement v. Francis Joseph Velten, Default Decision, Disciplinary Proceeding No. 2020066032801 (August 16, 2022).
According to the Decision, FINRA began an investigation into allegations that Velten “churned” and “flipped” customers’ accounts at Summit Brokerage Services Inc., through the redemption and sale of high commissioned variable annuities, which actually is commonly referred to as “twisting.” After Velton failed to comply with FINRA’s multiple requests for information during the investigation, FINRA filed a Complaint against him. Velten failed to respond to the Complaint. Therefore, FINRA Office of Hearing Officers found that Velten violated FINRA Rules 2010 and 8210.
FINRA Public Disclosure shows that Velten is referenced in nine customer initiated investment related disputes concerning Velten’s conduct while associated with securities broker dealers, including A. G. Edwards Sons Inc. and Summit Brokerage Services Inc. On February 10, 2003, a customer initiated investment related complaint involving Velten’s conduct was settled for $24,000.00 in damages based upon allegations that Velten made unsuitable recommendations of mutual funds when Velten was associated with A. G. Edwards Sons Inc.
Velten was also referenced in a complaint filed on March 20, 2013, in which the customer requested compensatory damages based upon allegations that Velten improperly established a non-qualified account for the customer when Velten was associated with Summit Brokerage Services Inc.
On March 24, 2014, a FINRA securities arbitration claim involving Velten’s conduct was settled for $65,000.00 in damages resulting from the customer incurring a lost guaranteed income benefit and death benefit on annuities exchanged by Velten. FINRA Arbitration No. 13-00813.
Velten was also referenced in a FINRA securities arbitration claim that was settled for $10,000.00 in damages based upon allegations that Velten made unsuitable recommendations of variable annuities to the Summit Brokerage Services Inc. customer. FINRA Arbitration No. 15-00560 (February 4, 2016).
On February 15, 2017, another complaint involving Velten’s conduct was settled for $14,900.00 in damages based upon allegations that Velten made unsuitable recommendations of Forward Looking Value Portfolio Series 3 to the customer.
Velten was associated with Independent Financial Group LLC from July of 2018 to January of 2020 and Summit Brokerage Services Inc. from August of 2006 to August of 2018.
