Jeffrey Paul Davis, of Wethersfield, Connecticut, a stockbroker formerly registered with Harvest Capital LLC, has been fined $5,000.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that he made unsuitable investment recommendations to firm customers. Letter of Acceptance, Waiver and Consent, No. 2013039456301 (Apr. 5, 2017).
According to the AWC, from February of 2007 to May of 2012, at a time when Davis was registered with Harvest Capital LLC, he made recommendations for three of the firm’s customers to purchase real estate investment trust products. Apparently, customers made a total of $566,000.00 in contributions into the illiquid investments.
The AWC stated that considering customers’ objectives of investing, along with their tolerance for risk and overall financial profile, it was unsuitable for thirty to fifty percent of their liquid net worth to be concentrated in the real estate investment trust products pursuant to Davis’ recommendations. Consequently, FINRA found that Davis’ conduct was violative of FINRA Rule 2010, as well as NASD Conduct Rules 2110 and 2310.
Financial Industry Regulatory Authority (FINRA) Public Disclosure reveals that Davis has been identified in nine customer initiated investment related disputes containing allegations of his misconduct while registered with Harvest Capital LLC, National Planning Corporation, and Invest Financial Corporation. Particularly, on September 5, 2001, a customer initiated investment related complaint involving Davis’ conduct was settled for $41,258.38 in damages based upon allegations that Davis failed to apprise the customer of the liquidity and risk of a variable annuity contract. Additionally, on September 5, 2001, a customer filed an investment related written complaint regarding Davis’ activities, where the customer requested $5,821.00 in damages based upon allegations that he made unsuitable mutual fund recommendations to the customer.
Subsequently, on December 28, 2007, a customer initiated investment related civil action involving Davis’ conduct was settled for $35,000.00 in damages based upon allegations that Davis breached his fiduciary obligations to the customer, and misrepresented the payments and principal protection guarantees pertaining to the customer’s investments.
On March 12, 2012, another customer filed an investment related written complaint regarding Davis’ activities, in which the customer requested $79,000.00 in damages based upon allegations that Davis sold the customer fraudulent real estate security investments. Further, on November 21, 2013, a customer initiated investment related oral complaint involving Davis’ conduct was resolved for $24,778.95 in damages based upon allegations that he failed to properly explain the terms and conditions of a real estate investment trust investment.
Davis’ employment with Harvest Capital LLC was terminated on November 1, 2013. He has been registered with Kovack Securities Inc. since November 1, 2013.
The information contained herein has been obtained from reliable sources however may not be accurate and is not guaranteed by us. Readers are encouraged to undertake their own independent investigation and evaluation of the relevant facts. All claims and allegations are subject to adjudication, decisions may be subject to appeal, and no inference is intended, nor should any inference be made from any information contained herein from any source.
This posting and the information on our website is for general information purposes only. This content should be not considered legal advice, and any responses, comments, e-mails, other communications do not form any attorney client relationship. Attorney Advertisement. See Important Disclaimer
Guiliano Law Group
Our practice is limited to the representation of investors. We accept representation on a contingent fee basis, meaning there is no cost to you unless we make a recovery for you. There is never any charge for a consultation or an evaluation of your claim. For more information, contact us at (877) SEC-ATTY.
For more information concerning common claims against stockbrokers and investment professionals, please visit us at securitiesarbitrations.com
To learn more about FINRA Securities Arbitration, and the legal process, please visit us at securitiesarbitrations.com
