Raymond Alexander Thomas (also known as Ray Thomas) of Brooklyn New York a stockbroker formerly registered with Network 1 Financial Securities Inc. is the subject of a Financial Industry Regulatory Authority (FINRA) Department of Enforcement Complaint alleging that he engaged in unauthorized outside business activities and that he lied to FINRA personnel to conceal his misconduct. Department of Enforcement v. Raymond A. Thomas Disciplinary Proceeding No. 2017056561101 (Mar. 6, 2020).
According to the Complaint, Thomas engaged in an outside business activity from February of 2014 to September of 2017 pertaining to Waverly Capital Group Inc. FINRA indicated that Waverly was a company that the stockbroker created and ran without Network 1’s knowledge or consent. The Complaint stated that in his capacity of chairman and general manager of Waverly Capital, he agreed to consult for a venture capitalist. Payments had allegedly been made into Waverly Capital’s bank accounts from customers who did business with the company. Department of Enforcement alleged that Thomas violated FINRA Rules 2010 and 3270.
The Complaint also alleged that Thomas told FINRA during a branch examination that he did not engage in an outside business activity. When the regulator prompted him to disclose bank accounts which he controlled or maintained some type of signatory authority in, Thomas failed to confess that he created an account for Waverly Capital. FINRA alleged that Thomas falsely testified that he did not maintain any authority in Waverly Capital accounts and that his mother established that company. Department of Enforcement alleged that Thomas’ false testimony constituted the violation of FINRA Rule 2010 and 8210.
Thomas has been identified in two customer initiated investment related disputes containing allegations of his misconduct while employed with European Community Capital Ltd. and First Montauk Securities Corp. FINRA Public Disclosure confirms that a customer filed an investment related complaint involving Thomas’ conduct in which the customer requested unspecified damages based upon allegations of the stockbroker’s unauthorized trading in the customer’s account and his failure to follow the customer’s instructions. Another customer initiated investment related complaint involving Thomas’ conduct was settled to resolve allegations of his unauthorized trading.
On March 13, 2018, Thomas was discharged by Network 1 based upon allegations of the stockbroker’s violation of its written supervisory procedures.
