Reynold Frank Vaughan III of Melville New York a stockbroker currently registered with SW Financial is referenced in a customer initiated investment related arbitration claim where the customer sought $69,433.00 in damages founded on allegations that (1) contractual duties had been breached (2) trades were executed in the customer’s account without the customer’s permission (3) transactions were not suitable for the customer (4) the customer’s account was negligently handled and (5) the customer’s account was churned. Financial Industry Regulatory Authority (FINRA) Arbitration No. 18-01055 (Dec. 7, 2009).
FINRA Public Disclosure confirms that Vaughan has been identified in ten additional customer initiated investment related disputes pertaining to accusations of his violative conduct during the time that he was employed by firms including Kirlin Securities, Inc. and Great Eastern Securities, Inc. Specifically, on March 22, 2000, a customer initiated investment related complaint concerning Vaughan’s conduct was settled for $11,000.00 in damages based upon allegations that Vaughan was responsible for the poor performance of corporate debt investments held by the customer.
Subsequently, a customer initiated investment related arbitration claim concerning Vaughan’s activities was resolved for $250,000.00 in damages supported by accusations that over-the-counter equities trades were executed in the customer’s account on an excessive, unauthorized and unsuitable basis. National Association of Securities Dealers (NASD) Arbitration No. 03-02753 (Nov. 1, 2004). On April 1, 2007, a customer filed an investment related complaint regarding Vaughan’s conduct in which the customer requested $100,000.00 in damages founded on allegations that inappropriate over-the-counter equities transactions had been executed in the customer’s account.
FINRA Public Disclosure further reveals that Vaughan is subject of three regulatory actions containing accusations of Vaughan’s sales practice violations. In particular, New York Stock Exchange censured and barred Vaughan for eighteen months based upon Vaughan’s consent to findings that he neglected to obey instructions from customers and placed trades in four customers’ accounts without authorization. In the Matter of Reynold F. Vaughan, III Exchange Hearing Panel Decision 92-100. As a result of NYSE’s imposition of a bar, Vaughan’s salesperson registration was denied by Illinois Securities Department. Case No. 9700243.
Vaughan has also been suspended for four months from associating with any FINRA member in any capacity based upon consenting to findings that he effected unsuitable purchases and sales of speculative low-priced securities in a customer’s investment portfolio. Letter of Acceptance Waiver and Consent No. 2007009232301 (June 26, 2009).
Vaughan has been associated with ten different broker dealers, six of which have been expelled by securities regulators for violation of federal securities laws or are otherwise defunct.
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