PHX Financial Named In Customer Arbitration Alleging Sales Practice Violations

Salomon David Krispeal, of Hauppauge, New York, a stockbroker formerly registered with John Thomas Financial, has been named in a customer initiated investment related arbitration claim, which settled on December 11, 2015. The claim was based upon allegations that Krispeal engaged in sales practice violations in the accounts of two customers. Krispeal was fined $2,500.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member based upon consenting to findings that he failed to timely report the foregoing customer arbitration. Letter of Acceptance, Waiver and Consent, No. 2014042764601 (Jan. 6, 2017).
FINRA Public Disclosure reveals that Krispeal has been identified in six additional customer initiated investment related disputes concerning allegations of his misconduct while employed with John Thomas Financial, Legend Securities, and Pointe Capital. Particularly, on September 17, 2007, a customer filed an investment related complaint involving Krispeal’s conduct, in which the customer requested $22,000.00 in damages based upon allegations that Krispeal effected unsuitable and unauthorized equity transactions, and utilized margin improperly in the customer’s investment account.
Subsequently, on December 26, 2007, a customer initiated investment related arbitration claim regarding Krispeal’s conduct was resolved for $5,067.00 in damages based upon allegations that Krispeal effected trades in the customer’s account on an unauthorized basis, and forged customer documents. On August 21, 2009, another customer filed an investment related written complaint involving Krispeal’s conduct, in which the customer sought $225,000.00 in damages based upon allegations that Krispeal made unsuitable investment recommendations concerning over-the-counter equities and exchange traded funds, churned the customer’s account, and made misrepresentations to the customer regarding a Regulation D investment offering.
Further, on June 20, 2010, a customer filed a written complaint concerning the activities of Krispeal, in which the customer requested $145,290.25 in damages based upon allegations that Krispeal charged the customer with excessive commissions pertaining to equity investments. On April 25, 2012, another customer filed an investment related written complaint involving Krispeal’s conduct, in which the customer requested $16,000.00 in damages based upon allegations that unauthorized trades were placed by Krispeal in the customer’s account.
Subsequently, on April 8, 2013, a customer initiated investment related arbitration claim regarding Krispeal’s activities was settled for $95,000.00 in damages based upon allegations that Krispeal effected excessive, unauthorized, and unsuitable stock transactions in the customer’s investment account.
John Thomas Financial was expelled by FINRA on October 31, 2013. From April 19, 2012, to March 4, 2013, Krispeal was registered with Aegis Capital Corp. Krispeal was registered with Legend Securities, Inc. from March 13, 2013, to February 9, 2016. Since January 20, 2016, he has been registered with PHX Financial, Inc.