Mark Gregory Raezer of Aurora Colorado a stockbroker formerly employed by Taylor Capital Management Inc. has been fined $15,000.00 and suspended for ten months from associating with any FINRA member in any capacity supported by accusations that Raezer engaged in private securities transactions during the time he was employed by the firm. Letter of Acceptance, Waiver and Consent No. 2018057075001 (June 25, 2019).
According to the AWC, between January of 2017 and March of 2017, a total of nine securities transactions had been undertaken by Raezer outside the firm’s auspices. Evidently, Raezer and another of the firm’s stockbrokers, DF, consummated the issuance of $911,000.00 worth of securities which were issued by an apparent real estate investment enterprise. FINRA revealed that nine elderly investors had been targeted for the investments which Raezer helped to be executed away from the firm. Evidently, investment accounts at Taylor Capital Management were established by six of those nine elderly investors.
The AWC stated that Raezer, inter alia; aided the investors in their completion of subscription agreements and applications. FINRA also pointed out that one of the investors had been consulted with by Raezer in regard to the investments where the investor was provided sales related materials. Evidently, through Raezer’s contributions in this respect, he received a financial benefit from a tax preparation, life insurance and retirement planning business created by DF.
The investments that Raezer helped sell were allegedly fraudulent, according to the AWC. Specifically, the investors’ funds were reportedly utilized by the founder of the Issuer in a deceptive manner, wherein the founder depleted the investors’ funds in order to cover his personal obligations. The AWC stated that the entirety of the investors’ $911,000.00 is gone.
At the time these transactions were executed, Raezer was apparently obligated under the firm’s supervisory procedures to ask permission prior to engaging in private securities transactions. Raezer was additionally prohibited from engaging in the transactions unless Taylor Capital Management Inc. authorized those activities. Nevertheless, there had been no information disclosed to the firm by Raezer in regard to the outside securities transactions, and the firm never permitted Raezer to sell away. Consequently, FINRA found Raezer’s conduct violative of FINRA Rules 2010 and 3280.
This is not the first time that Raezer has been sanctioned by a securities regulator for misconduct. Particularly, Raezer was suspended for sixty days by the Colorado Securities Commissioner according to an Order containing findings that Raezer effected securities transactions without any authorization from Taylor Capital Management. Case No. 2018-CDS-003 (Jan. 31, 2018).
FINRA Public Disclosure also reveals that Raezer has been referenced in two customer initiated investment related disputes containing allegations of his violative conduct while he was employed by TCM Securities Inc. In particular, a customer filed an investment related arbitration claim concerning Raezer’s conduct where the customer sought $426,052.00 in damages founded on accusations that false or misleading statements had been made to the customer concerning the risks and guarantees which pertained to limited partnership units issued by Madyson Capital Management LLC; the customer’s investments were handled negligently; fiduciary obligations to the customer had been violated; transactions were executed in violation of Colorado securities laws; and the customer was defrauded. FINRA Arbitration No. 18-00617 (Feb. 16, 2018).
Thereafter, a customer filed an investment related arbitration claim involving Raezer’s activities in which the customer requested $91,115.15 in compensatory damages and unspecified punitive damages based upon allegations of the violation of fiduciary duties; poor investment recommendations; and false or misleading statements about Madyson Capital Management LLC’s securities.
Raezer’s Employment with TCM Securities Inc. has been terminated as of January 17, 2018 supported by accusations of the firm being apprised by the Colorado Division of Securities that it was about to take disciplinary action against Raezer for selling away from the firm.
