John William Spach of Aliso Viejo California a stockbroker formerly employed by Kestra Investment Services LLC and investment advisory representative formerly associated with NFP Retirement Inc. has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon findings that Spach failed to cooperate with a FINRA investigation into allegations that Spach was subject of a customer complaint he attempted to settle. Letter of Acceptance Waiver and Consent No. 2018058884001 (Feb. 21, 2019).
According to the AWC, an investigation into Spach’s activities was launched by FINRA around the time it had been provided information about Spach’s termination from Kestra Investment Services. In particular, the firm discharged Spach on June 18, 2018, in which it stated that Spach was allowed to resign when he was internally investigated regarding his possible company policy violations in regard to a complaint from Spach’s customer at NFP Retirement Inc.
The AWC stated that as part of the investigation, FINRA sought Spach’s information and documentation. Apparently, on December 19, 2018, Spach was asked by FINRA personnel to provide information concerning a customer complaint in reference to his sale of a promissory note which defaulted. Spach was expected under Rule 8210 to cooperate with FINRA’s request by providing the documentation and information to the regulator by January 9, 2019.
The AWC revealed that counsel for Spach contacted FINRA personnel on January 10, 2018, indicating that Spach understood the nature of FINRA’s request but would not be cooperating with the regulator. FINRA found that Spach was not going to provide any information or documentation at any point in their investigation into his misconduct. Consequently, FINRA found Spach’s obstruction of the FINRA investigation to be violative of FINRA Rule 2010 and 8210.
FINRA Public Disclosure additionally confirms that on May 31, 2018, a customer initiated investment related complaint concerning Spach’s conduct was settled for $450,000.00 in damages founded on accusations that Spach made arrangements for his NFP Retirement Inc. customer to buy investments through an investor, where the customer made a $475,000.00 investment in return for a promissory note which later defaulted.
Moreover, on July 26, 2018, Spach was discharged by NFP Retirement Inc. supported by allegations that Spach, inter alia: made misrepresentations and false statements to the firm about his activities; violated the firm’s procedures and policies; made unsuitable investment recommendations to customers of the investment advisory; breached a fiduciary duty customers; and comingled customers’ assets; conduct the firm claims to be violative of Investment Advisors Act of 1940 Sections 275.206(4)-7, 275.206(4)-3; 275.206(4)-2; 275.204-3; 275.204-2; and 275.204A-1.
Spach’s registration with Kestra Investment Services LLC has been terminated as of June 18, 2018.
