Mitchell Allen Kurtz of Roslyn Heights New York a stockbroker formerly employed by Henley Company LLC has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that he obstructed a FINRA investigation into accusations that Kurtz violated Securities and Exchange Commission (SEC) and FINRA Rules relating to (1) fiduciary duty obligations (2) private securities and (3) outside business activities. Letter of Acceptance Waiver and Consent No. 20180594237-01 (Dec. 3, 2018).
According to the AWC, in January of 2010, Kurtz had become employed by Henley & Company as a stockbroker, options principal and general securities principal. However, Kurtz was evidently discharged by the firm on July 30, 2018 based upon allegations that after speaking with Kurtz and investigating his activities, Kurtz committed violations of SEC and FINRA Rules by possibly breaching fiduciary obligations, selling away from the firm and engaging in outside business activities. The firm additionally contended that Kurtz’s conduct was in violation of the firm’s Code of Ethics and professional standards. The firm reported this information to FINRA via Form U5 on July 30, 2018.
Following up in this regard, FINRA reportedly sent Kurtz two requests in September of 2018 for Kurtz to provide information and documentation to the regulator, under Rule 8210, in reference to the accusations of Kurtz’s misconduct as cited by Henley Company. Apparently, Kurtz retained counsel who made FINRA aware that Kurtz understood the nature of the request but that Kurtz would not be cooperating, at any point, in FINRA’s investigation into his misconduct. Consequently, FINRA found that Kurtz’s conduct was violative of FINRA Rules 2010 and 8210. FINRA barred Kurtz from the securities industry as a result.
This is not the first time that Kurtz has been sanctioned by a securities regulator. Particularly, Kurtz was previously fined $10,000.00 and suspended by FINRA from associating with any member in any capacity based upon Kurtz’s consent to findings that while he was registered with Raymond James Financial Services, Inc., he impermissibly altered customer account documentation. Letter of Acceptance Waiver and Consent No. 2009019378801 (Aug. 9, 2012). FINRA found that Kurtz’s conduct was violative of National Association of Securities Dealers (NASD) Rules 3110 and 2110. Raymond James discharged Kurtz on December 15, 2009 supported by allegations of Kurtz’s alteration of customer forms and involvement in a customer initiated investment related dispute.
FINRA Public Disclosure reveals that Kurtz is referenced in three customer initiated investment related disputes pertaining to accusations of his violative conduct during the time that he was associated with Advest, Inc. and Raymond James Financial Services. Specifically, a customer initiated investment related arbitration claim involving Kurtz’s conduct was resolved for $400,000.00 in damages founded on allegations that the customer’s equity portfolio had been churned and unsuitable investments had been placed in the customer’s account. NASD Arbitration No. 03-05249 (Jan. 27, 2005).
Thereafter, a customer initiated investment related arbitration claim concerning Kurtz’s activities was settled for $1,100,000.00 in damages based upon accusations that Kurtz caused or contributed to: violations of federal and state securities laws as well as FINRA and NASD rules; negligent activities involving the customer’s investment account; misrepresentations regarding options and equities products; a breach of fiduciary and contractual duties; unauthorized transactions having been effected in the customer’s account; unsuitable trading; churning of the customer’s investment account; and fraud. FINRA Arbitration No. 09-02347 (May 14, 2010).
Another customer initiated investment related arbitration claim regarding Kurtz’s conduct was resolved for $35,000.00 in damages supported by allegations that Kurtz breached a fiduciary duty to the customer, misrepresented information regarding investments, breached a contractual duty to the customer, and engaged in unsuitable trading of options, mutual funds, stock and over-the-counter equities. FINRA Arbitration No. 11-02258 (July 5, 2012).
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