Brantly Chavis, a OneAmerica registered representative, was permanently barred from associating with any Financial Industry Regulatory Authority member in any capacity after accepting and consenting to Financial Industry Regulatory Authority’s findings that Chavis had converted funds from a customer. Letter of Acceptance, Waiver, and Consent No. 2014042234401 (Sept. 2, 2015).
According to the AWC, Chavis had incorporated Aqua Green Industries, Inc., and started operations in September of 2012 while he was associated with OneAmerica. The AWC stated that Aqua Green was created to use green treatment and chemicals to clean industrial waste water. Chavis, according to the AWC, engaged in the solicitation of $118,000 in investments from OneAmerica’s 87 year-old client, BG, for purposes of investing in Aqua Green.
The AWC indicated that the only funding that Aqua Green had ever received was from the elderly investor. Chavis reportedly converted $25,000 of the customer’s funds that BG provided him, commingling BG’s investment with Chavis’ personal accounts. Chavis, according to the AWC, utilized BG’s money to pay for expenses that had no relation to Aqua Green, such as using funds for Chavis’ apartment rent, utilities, a car lease, etc.
The AWC additionally noted that Chavis did not disclose his Aqua Green operations to OneAmerica when such disclosure was required considering it was an outside business activity that Chavis was required to report to OneAmerica per Rule 3270. Financial Industry Regulatory Authority found Chavis to have violated Rules 2150(a), 2010, and 3270. He was barred as a result.
Public disclosure records via FINRA’s BrokerCheck reveal that Brantly Chavis, Jr. has been subject to one pending customer dispute. On July 9, 2014, a customer requested $208,000.00 in damages after alleging that Chavis had misappropriated funds and/or made unsuitable recommendations.
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, Esquire, 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.
