Gerald James O’Halloran of Punta Gorda Florida a stockbroker formerly employed by Kovack Securities Inc. has been fined and ordered to cease and desist from engaging in violations of Florida Statutes according to an Order issued by Florida Office of Financial Regulations containing findings that (1) O’Halloran failed to inform his securities broker dealer about his outside business activities and (2) O’Halloran engaged in unethical or dishonest business activities in the securities industry. Case Nos. 60484, 70701 (Sept. 20, 2018).
According to the Order adopting the Stipulation and Consent Agreement, O’Halloran reportedly executed authorization forms in regard to the trading in customer accounts when those trading authorizations were incomplete or otherwise invalid. The Office ordered O’Halloran to cease and desist current and prospective violations of Florida Statute Chapter 517.
Financial Industry Regulatory Authority (FINRA) Public Disclosure confirms that O’Halloran has been identified in eight customer initiated investment related disputes containing accusations of his violative conduct while employed with securities broker dealers including A.G. Edwards Sons Inc., Kovack Securities Inc. and Edward Jones. In particular, a customer initiated investment related complaint concerning O’Halloran’s conduct was settled to resolve allegations that unauthorized equity transactions were executed in the customer’s account while O’Halloran was associated with A.G. Edwards Sons Inc.
Thereafter, O’Halloran was subject of a customer initiated investment related arbitration claim in which the customer was awarded $76,565.08 in damages and interest based on O’Halloran being found liable on the customer’s claims of unsuitability and violation of Florida Statutes Chapter 517. FINRA Arbitration No. 07-01446. According to the Award, two stocks had been purchased for the customer’s account which were unsuitable for the customer given the customer’s future earnings prospectus, investment experience, financial situation and experience with investing. Moreover, the Panel indicated that the speculative nature of those investments was beyond the level of risk that the customer was comfortable taking, so the transactions were violative of Florida Statutes Chapter 517.
Another customer initiated investment related complaint regarding O’Halloran’s activities was resolved for $14,000.00 in damages supported by accusations that reverse convertible notes transactions were effected in the customer’s account without the customer’s permission while O’Halloran was associated with Kovack Securities Inc. Subsequently, a customer initiated investment related arbitration claim concerning O’Halloran’s conduct was settled for $60,000.00 in damages founded on allegations that while O’Halloran was associated with Kovack Securities Inc., contractual and fiduciary duties owed to the customer had been breached; the customer’s account lacked adequate supervision and was negligently administered; and misrepresentations and omissions had been made concerning real estate investment trust products sold to the customer. FINRA Arbitration No. 16-02140 (Aug. 17, 2017).
Additionally, O’Halloran has been twice terminated for engaging in violative activities in the securities industry. In particular, Edward Jones discharged O’Halloran based upon accusations that O’Halloran engaged in unauthorized communications and did not maintain records according to the firm’s requirements. Subsequently, O’Halloran was terminated by A.G. Edwards Sons Inc. supported by allegations that O’Halloran failed to appropriately handle correspondence from a customer concerning issues with the customer’s account.
O’Halloran’s registration with Kovack Securities Inc. has been terminated as of March 2, 2018. Since December 4, 2018, she has been associated with Union Capital Company.
