William Howard Coons, of New York, New York, a stockbroker formerly registered with Hallmark Investments, Inc., has been fined $5,000.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity pursuant to a Decision and Order of Offer of Settlement containing findings that Coons sold securities that were not registered. Department of Enforcement v. Coons, et al., No. 2014039352302 (July 31, 2017).
According to the Decision, Coons engaged in consulting services for Microphase – an entity based in Connecticut that designed electronic equipment, wherein Coons’ efforts were compensated by Microphase with 225,000 of the entity’s stock shares in March of 2014. Apparently, from June 2014 to July 2014, Coons sold four customers a total of 127,500 shares for $198,750.00, despite the company’s stock never having been registered or provided with an exemption from registration by the Securities and Exchange (SEC) Commission. FINRA found that Coons’ conduct was violative of FINRA Rule 2010 as a result.
This is not the first time that Coons has been subject of a FINRA regulatory infraction. Particularly, he was fined $10,000.00 and suspended by FINRA based upon consenting to findings that he made misstatements about promissory notes transactions that he placed for twenty investors. Letter of Acceptance, Waiver and Consent, No. 2011026346205 (Jan. 31, 2013). According to the AWC, Coons was reportedly ignorant of the financial condition of the promissory notes issuer, Westrock Group, particularly concerning the issuer’s ability to make whole on the promissory notes obligations. FINRA found that Coons ultimately downplay risks of the issuer’s default as a result. Consequently, Coons’ conduct was found by FINRA to be violative of FINRA Rules 2010.
FINRA Public Disclosure reveals that Coons has been identified in three customer initiated investment related disputes pertaining to allegations of his wrongdoing while he was employed with Maxim Group and Investec Ernst & Company. Particularly, on June 1, 2009, a customer initiated investment related arbitration claim involving Coons’ conduct was settled for $220,000.00 in damages based upon allegations that Coons made misrepresentations to the customer, and effected excessive and unsuitable trades in the customer’s account.
Coons has been registered with Spartan Capital Securities, LLC since March 6, 2017. Since April 24, 1990, he has been associated with thirteen different broker dealers, ten of which have been expelled by securities regulators for violation of federal securities laws or are otherwise defunct. #cockroach
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