George Mackley Robertson of Darien Connecticut a stockbroker formerly registered with Kestra Investment Services LLC has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that (1) Robertson sold away from Kestra Investment Services (2) Robertson engaged in outside business activities without disclosing them to the firm and (3) Robertson lied to FINRA when the regulator launched an investigation into his private securities transactions and outside business activities. Letter of Acceptance Waiver and Consent No. 2016051985601 (Dec. 13, 2018).
According to the AWC, between November of 2015 and December of 2016, written supervisory procedures utilized by the firm mandated that brokers provide advanced written notification to the firm, and obtain approval from the firm, for any outside business activities the broker would engage in. The AWC stated that Robertson and other brokers were disallowed from engaging in outside business activities when it involved capital raising activities.
Nevertheless, on December 16, 2014, a Connecticut-based limited liability company, Origin Fund, LLC, had been created by Robertson, in which Robertson was the LLC’s sole managing-member. The AWC stated that among other things: business bank accounts were established in the company’s name by Robertson; a presentation and business plan detailing an investment strategy was created by Robertson and disseminated to prospective investors; and written materials and online directories showed Robertson as the LLC’s general director and chief information officer. Supposedly, Robertson failed to make any written disclosure of his activities to the firm, and the firm never authorized Robertson to engage in those activities. FINRA found Robertson’s conduct in this regard to be violative of FINRA Rules 2010 and 3270.
The AWC additionally stated that the firm’s written supervisory procedures mandated brokers to provide the firm with written notification about a private securities transactions that the broker sought to engage in. The firm’s procedures reportedly required that brokers not engage in any private securities transactions unless the firm authorized them, and those transactions requiring the firm’s approval included the solicitation and offering of equity products, hedge funds or venture capital investments.
The AWC noted that the investment strategy for the Origin Fund had been presented to prospective investors. That strategy called for $100,000,000.00 in funds to launch the investment fund. Apparently, Robertson helped an investor DK, make a $50,000.00 contribution in the Origin Fund, which allowed DK to generate returns based upon the Origin Fund’s profitability. Evidently, Kestra Investment Services was not made aware of Robertson’s involvement with Origin Fund, particularly concerning the securities transaction involving DK. FINRA found Robertson’s activities in this regard violative of FINRA Rules 2010 and 3280.
Moreover, the AWC stated that in December of 2016, Robertson furnished information to FINRA in the course of FINRA’s inquiry into Robertson’s activities. Robertson reportedly claimed to FINRA that he received a $40,000.00 loan from DK for the Origin Fund. Supposedly, Robertson claimed to FINRA that he was not working for the Origin Fund in any officer capacity, and that he did not seek any funds to be raised for Origin Fund or otherwise solicit investments for the Origin Fund. FINRA found that Robertson’s remarks were false, as evidenced by Robertson’s solicitation of DK’s investment and Robertson’s dissemination of the presentation and business plan that made references to himself as the managing partner of the Origin Fund LLC. FINRA found Robertson’s failure to be forthcoming as violative of FINRA Rules 2010 and 8210.
Robertson’s registration with Kestra Investment Services was terminated on December 13, 2016 founded on allegations that Robertson, inter alia, engaged in unapproved outside business activities.
