Frederick Joseph Rock (also known as Frederick Joseah Rock) a stockbroker formerly registered with Pruco Securities LLC has been fined $5,000.00 and suspended for five months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity founded on findings that Rock engaged in private securities transactions involving customers of Pruco Securities. Letter of Acceptance Waiver and Consent No. 2019063574801 (Apr. 23, 2021).
According to the AWC, between March of 2019 and June of 2019, private placement investments had been solicited by Rock. The private placements concerned a new company who purported to develop waste-to-energy technology. 17 investors collectively invested $409,200.00 in the company. At least four of the investors maintained accounts at Pruco Securities.
The stockbroker took part in the private placement sales not just by recommending the products but also by helping investors complete purchases. Rock had customers complete stock purchase agreements and provide the stockbroker with checks which he forwarded to the issuer.
Pruco Securities was not provided with advanced notice by Rock about his involvement in the private placement transactions. The stockbroker was required under Pruco Securities’ policy to notify the firm in advance of undertaking private securities transactions. The stockbroker violated FINRA Rules 2010 and 3280 in this respect.
Rock has been identified in two customer initiated investment related disputes concerning allegations of his misconduct. FINRA Public Disclosure confirms that a customer initiated investment related complaint involving Rock’s conduct was settled for $115,000.00 in damages based upon accusations that unauthorized trades of exchange traded funds and mutual funds were executed in the customer’s account by the stockbroker during the time that he was associated with Fifth Third Securities Inc. The claim also alleges that the customer’s funds had been misappropriated.
On April 22, 2016, another customer filed an investment related complaint concerning Rock’s conduct in which the customer requested $23,216.00 in damages supported by allegations that the customer had not been provided with important information regarding the annuities that they purchased through Rock at Pruco Securities. According to the claim, the transactions were inappropriate for the customer.
