John Carter Braddock, of Salida, Colorado, a stockbroker formerly registered with Lakeridge Capital Inc., has been suspended for five months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon findings that he misrepresented and omitted information relating to private placements during the time that he was registered with Lakeridge Capital. Letter of Acceptance, Waiver, and Consent No. 2019064696501 (June 17, 2021).
According to the AWC, starting in September of 2018, prospective investors, including those with accounts at Lakeridge Capital, were solicited by Braddock to buy equity in Company A. FINRA states that Company A was engaged in exporting beverages to foreign markets from the United States. Braddock was the founder and CEO of Company A. He created a memorandum for the offering, which was authorized by Lakeridge Capital. The memorandum contained omissions and misrepresentations, according to the regulator.
The AWC states that the private placement mentioned how Braddock had 35 years of business and financial experience and that he and his partners raised $2,000,000,000.00 through fundraising and other financial transactions. But the memorandum did not identify that Braddock filed for bankruptcy in June of 2017. It did not mention that a debt reorganization plan was entered into by Braddock in April of 2018, which came before the time that investors were solicited. The AWC states that investors should have been notified about the bankruptcy and other information concerning Braddock’s background.
FINRA also indicates that misrepresentations were made regarding earnings. The memorandum states that a different company that Braddock owned and operated had contributed $1,130,000.00 in earnings into Company A, and that $280,000.00 of that came from working capital. The regulator states that there was no investment that Company A received from Braddock’s other company, and that it was misleading for Braddock to characterize working capital and earnings because it seemed that Company A had more money to fund its operations than it had.
Braddock violated FINRA Rule 2010 for his misrepresentations and omissions.
Braddock was registered with Lakeridge Capital between August 7, 2012, and December 11, 2019.
