Richard Hunt Crockett of New York New York is a former chief compliance officer of Osprey Partners LLC who has been fined $5,000.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that he failed to supervise Osprey stockbrokers’ private securities transactions. Letter of Acceptance Waiver and Consent, No. 2017053992302 (Apr. 3, 2018).
According to the AWC, between June of 2016 and May of 2017, it was Crockett’s responsibility to review and approve of the firm’s stockbrokers’ private securities transactions and outside business activities. Apparently, some of the stockbrokers were approved by Crockett to engage in outside business activities involving an investment holding company, BCG. The AWC stated that the firm’s stockbrokers utilized BCG to collectively offer and sell at least $8,000,000.00 worth of promissory notes in BCG and BIF, wherein BIF was a fund BCG marketed to investors that pertained to investments in Belize based real estate. Evidently, Osprey’s stockbrokers had been compensated by BCG in return for selling BIF and BCG promissory notes.
The AWC further stated that stockbrokers retrieved Crockett’s approval to sell securities in BIF and BCG away from Osprey; however, Crockett neglected to provide adequate supervision of the Osprey stockbrokers’ private securities transactions. Evidently, no due diligence had been performed by Crockett in reference to the BIF and BCG promissory notes offerings. The AWC stated that Crockett delegated his supervisory responsibility in that regard to an Osprey stockbroker, MM, who just so happened to be one of BCG’s principals that was incapable of conducting an independent assessment. FINRA concluded that Crockett’s conduct was violative of FINRA Rules 2010, 3110(a) and 3280.
FINRA Public Disclosure reveals that a customer initiated investment related arbitration claim that pertained to Crockett’s conduct was settled for $76,500.00 in damages supported by accusations of breach of contract, negligence, churning, unauthorized trading, suitability and fraud in reference to over-the-counter equities and stock transactions executed in the customer’s account while Crockett was associated with Craig Scott Capital LLC. FINRA Arbitration No. 13-00663 (Mar. 5, 2014).
Crockett’s registration with Osprey Partners LLC was terminated on July 17, 2017. Between September 21, 2017 and March 21, 2018, Crockett has become associated with Spencer Clark LLC, OCP Capital, LLC and Cova Capital Partners LLC. Crockett has been registered with fourteen different broker dealers, three of which have been expelled by securities regulators for violation of federal securities laws or are otherwise defunct.
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