Karen Hajek, of Saint Petersburg, Florida, a stockbroker with Cetera Financial Specialists, LLC, was recently fined $15,000.00 and suspended for six months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity after Hajek consented to findings that she engaged in multiple undisclosed outside business activities. Letter of Acceptance, Waiver and Consent, No. 2013037390701 (Jan. 21, 2016).
According to the AWC, Hajek had engaged in the undisclosed outside business activities from June 2006 through February 2014. Throughout this time, Hajek worked with Genworth Financial Services Corporation, Cetera Financial Specialists LLC, and later NFP Securities, Inc. The AWC stated that she participated in a family corporation, KIS, in a management capacity since the company formed in 2010. Hajek reportedly acted as KIS’s vice president and director until dissolution in September 2014.
The AWC stated that Hajek was authorized to sign on behalf of the KIS checking account, and did sign on the company’s behalf with respect to certain documents. Hajek’s other responsibilities, according to the AWC, included allocating expenses to the firm’s checking account, and engaging in an agreement with a human resources and payroll company for revenue-sharing purposes.
According to the AWC, Hajek was responsible for disclosing to her aforementioned firms that she was involved with KIS. FINRA found that Hajek failed to disclose her involvement in this regard.
The AWC further reported that Hajek was involved with seven additional entities, in which she was able to manage and had authority to sign on the entities’ behalf. Genworth, Cetera, and NFP all required written disclosure of these entities and her involvement in them, as was the case with KIS. Hajek reportedly failed to disclose this information as well. FINRA found that Hajek violated FINRA Rules 2010 and 3270, as well as NASD Rule 3030 in reference to her non-disclosures.
The AWC indicated that Hajek resigned from Cetera on June 14, 2013, amid a company review pertaining to retirement accounts that were held away from the firm. She later resigned from NFP Securities on February 4, 2014, amid allegations that she engaged in outside activities.
Guiliano Law Group
Our practice is limited to the representation of investors. We accept representation on a contingent fee basis, meaning there is no cost to you unless we make a recovery for you. There is never any charge for a consultation or an evaluation of your claim. For more information, contact us at (877) SEC-ATTY.
