William Oscar Hardy, a NYLife Securities, was permanently barred by Financial Industry Regulatory Association (FINRA) after consenting to findings that he misused customer insurance premium funds. Letter of Acceptance, Waiver, and Consent No. 2014039881901 (May 4th, 2015).
According to FINRA, Hardy was employed with NYLife Securities LLC in May, 2002 through February 21, 2014. The AWC indicated that from May 5, 2013 until July 17, 2013, Hardy caused his firm client’s insurance policy to lapse as a result of missing the client’s insurance premium funds. The AWC indicated that Hardy had received $658 in funds for purposes of paying for a fixed life insurance policy from his client. Hardy reportedly allocated some of the monies towards the insurance policy held by the client’s children, while taking the remainder and placing it into his personal banking account. Consequently, according to the AWC, the policy had lapsed.
FINRA found that Harper’s conduct of misusing the customer funds was violative of Rule 2010, which requires a member to exhibit high standards of commercial honor and just and equitable principles of trade.
Public Disclosure Records reveal that prior to Hardy’s permanent bar, Hardy was permitted to resign on November 21, 2014, from NYLife based on his employer’s allegations that Hardy admitted he was commingling funds and loaning funds to a client. The firm indicated that they became aware of Hardy’s conduct after a customer submitted a complaint containing a request for his universal life insurance policy to be reinstated.
This is also not the first time that Hardy had been terminated from a firm for misconduct allegations. On February 11, 2002, he was discharged by Mutual of Omaha Investor Services after he was alleged to have violated internal procedures and policies by failing to disclose outside business activities.
Firms and individuals, not surprisingly, are prohibited from unauthorized use of customer funds, borrowing of a customer’s securities or funds, forgery, non-disclosures or misstatements of material facts, and various deceptions and manipulations. Such conduct can also be found to violate criminal and other civil laws, and be subject to sanction from the federal and state government bodies.
Securities brokerage firms have a duty to supervise their brokers and the sales practices of their brokers, and to review customer statements for, among other things, evidence of suitability, unauthorized trading, or excessive activity.
Guiliano Law Group
If you have been the victim of securities fraud and you have a complaint, you should consult with an attorney. The practice of Nicholas J. Guiliano, Esq., and The Guiliano Law Group, P.C., is limited to the representation of investors in claims for fraud in connection with the sale of securities, the sale or recommendation of excessively risky or unsuitable securities, breach of fiduciary duty, and the failure to supervise. We accept representation on a contingent fee basis, meaning there is no cost unless we make a recovery for you, and there is never any charge for a consultation or an evaluation of your claim. For more information contact us at (877) SEC-ATTY.
