David A. Tufts, of New York, New York, a stockbroker formerly registered with Oppenheimer & Co. Inc., has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that he failed to provide recorded testimony in a FINRA investigation into allegation of his supervisory misconduct. Letter of Acceptance, Waiver and Consent, No. 2015048122701 (Apr. 6, 2017).
According to the AWC, FINRA was sent notification from Oppenheimer & Co. which detailed that Tufts’ registration with the firm was terminated on November 6, 2015. The firm later disclosed on November 23, 2015, that Tufts’ conduct was subject of an internal review by the firm. Following up in this regard, FINRA began an investigation into Tufts’ supervisory activities involving an Oppenheimer stockbroker, GT, between July of 2010 and December of 2014.
Based on FINRA Rule 8210, Tufts was sent a letter from FINRA on January 24, 2017, which called upon him to provide recorded testimony before FINRA staff on March 14, 2017, pertaining to his supervision of GT. Tufts’ counsel reportedly contacted FINRA staff on March 8, 2017, to acknowledge that Tufts received the letter from FINRA requesting Tufts’ testimony. However, Tufts refused to testify before FINRA staff or further cooperate in the course of FINRA’s investigation. FINRA found that Tufts’ failure to make an appearance in this regard was conduct violative of FINRA Rule 2010 and 8210, which resulted in his permanent bar.
Financial Industry Regulatory Authority (FINRA) Public Disclosure reveals that Tufts has been identified in three customer initiated investment related disputes containing allegations of Tufts’ wrongdoing while associated with Oppenheimer & Co. Inc. Specifically, on April 29, 2010, two customers filed investment related written complaints involving Tufts’ conduct, in which the customers collectively requested $585,260.00 in damages based upon allegations that Tufts, as branch manager, did not reasonably supervise an adviser who effected unsuitable and unauthorized transactions in the customer’s account pertaining to exchange traded funds, unit investment trust products, and stocks.
Subsequently, on April 24, 2016, a customer filed an investment related arbitration claim regarding Tufts’ activities, in which the customer requested $6,750,000.00 in damages based upon allegations that Tufts breached his contractual obligations, failed to supervise a registered representative, and defrauded the customer in reference to the customer’s investments in over-the-counter equities.
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