John Joseph Vaughan, a former registered securities representative and compliance manager with HFP Capital Markets, LLC., was barred from association with any FINRA registered firm in all capacities after Levitt failed to cooperate with a FINRA investigation into allegations that HFP Capital Markets had charged customers unfair prices and failed to provide adequate supervision of its registered brokers. Dept. of Market Regulation v. Vaughan No. 20120318775-01 (June 29, 2015).
FINRA Office of Hearing Officers Decision
According to the Decision, The Department of Market Regulation’s Fixed Income Investigations Section initiated an investigation into HFP Capital’s corporate bond transaction pricing from October of 2011 through March of 2013. The Decision indicates that FINRA discovered that Vaughan was responsible for reviewing markups/markdowns on corporate bond transactions. The Decision indicates that Vaughan did not respond to multiple requests by FINRA for his appearance to provide testimony regarding the aforementioned transactions.
The Decision further states that on August 3, 2014, Vaughan ultimately notified FINRA that per the advice of his counsel, he would not be participating in any interview that FINRA had already rescheduled multiple times. According to the Decision, FINRA charged Vaughan in a Complaint alleging that he violated FINRA Rules 2010 and 8210 for failure to appear and provide testimony in connection with the aforementioned investigation. The Decision indicates that Vaughan did not respond to the Complaint issued by FINRA after being properly served. By default (in Vaughan’s failure of filing an Answer), the Hearing Officer deemed allegations against Vaughan to be admitted under FINRA Rule 9215(f) and 9269(a).
Barred for Not Cooperating with Investigation
FINRA registered representatives like Vaughan who do not cooperate with FINRA’s investigations often face a permanent bar from practicing in the securities industry as such lack of cooperation violates FINRA’s Rule 8210 – requiring that no member or person shall fail to provide information or testimony or permit an inspection and copying of books, records, or accounts pursuant to the rule. FINRA typically accompanies a Rule 8210 violation with a Rule 2010 violation when individuals, according to FINRA, do not appear to observe high standards for commercial honor and just and equitable principles of trade.
Guiliano Law Group
Investors suffering losses or damages caused by John Joseph Vaughan in connection with this aforementioned conduct may be able to recover their investment losses. Our practice is limited to the representation of investors in claims, for fraud in connection with the sale of securities, the sale or recommendation of excessively risky or unsuitable securities, breach of fiduciary duty, and the failure to supervise. We accept representation on a contingent fee basis, meaning there is no cost to you unless we make a recovery for you, and there is never any charge for a consultation or an evaluation of your claim. For more information contact us at (877) SEC-ATTY.
