Rand Alan Heckler of Glen Cove New York a stockbroker formerly registered with Benjamin Jerold Brokerage I LLC has been charged by Securities and Exchange Commission (SEC) with defrauding investors. SEC v. Rand Heckler and Rand Heckler Inc. Civil Action No. 1:20-cv-04654 (Sept. 30, 2020).
According to the Complaint, in 2015, a senior investor’s securities transactions had been solicited by Heckler. The investor was purportedly led to believe that Heckler was the manager of a winning hedge fund. The investor and his son were allegedly told by Heckler to make payments to Heckler Inc. for investment purposes. That company was controlled and operated by the stockbroker.
SEC alleges that there was no hedge fund that Heckler managed. There were purportedly no investments that Heckler made with funds that he received from that investor and their son. The funds were allegedly misappropriated by Heckler so that he could make payments on his car, country club, mortgage, or other expenses of a personal nature.
The regulator claims that Heckler was able to continue defrauding the customers because he provided them with false statements. The customers were handed phony Heckler Inc. statements that showed investments in stocks and other investments. The customers believed that the Heckler Inc. statements were real prompting them to make another $755,000.00 in investments in the company from 2015 to 2020.
SEC alleges that Heckler contacted a different customer regarding investing $100,000.00 that the customer received when her husband passed away. The widow was purportedly led to believe that her investment would be made in something that was capable of producing big dividends. But the widow’s money was actually misused and provided to an investor who demanded a redemption from Heckler. SEC alleged that Heckler’s intentions were to initiate a Ponzi-like payment.
FINRA alleged that Heckler violated Securities Exchange Act of 1934 Section 10(b), SEC Rule 10b-5, Securities Act of 1933 Section 17(a), and Investment Advisers Act of 1940 Section 206.
Heckler has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon findings that he failed to comply with an investigation into accusations of his misrepresentation and misappropriation. Letter of Acceptance Waiver and Consent No. 2018061005101 (June 14, 2019).
According to the AWC, on April 10, 2019, Heckler was instructed by FINRA to provide information and documents so that it could review whether he made unsuitable recommendations to a customer and misrepresented information relating to their investments. Heckler was expected to provide a response by April 19, 2019 but he failed to comply.
Heckler was also asked by FINRA to testify on May 8, 2019. No information was provided by the stockbroker in response to this request. For refusing to comply with FINRA while under investigation, Heckler violated FINRA Rules 2010 and 8210.
FINRA Public Disclosure confirms that Heckler has been identified in five customer initiated investment related disputes concerning allegations of his wrongdoing while registered with securities firms including Westrock Advisors and Investec Ernst Company. Heckler is referenced in a customer initiated investment related written complaint which was settled for $22,000.00 in damages founded on accusations of suitability.
On December 19, 2018, another customer filed an investment related complaint regarding Heckler’s conduct where the customer sought $312,090.00 in damages supported by allegations that the customers did not receive any correspondence, accounting, or status of their investments that had been made at Heckler’s direction. The complaint alleges that Heckler has not been compliant with the customer’s requests.