Robert Russell Tweed of San Marino California a stockbroker formerly employed by CapWest Securities Inc. has been fined $50,000.00 and barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon an Extended Hearing Panel Decision containing findings that Tweed (1) made misleading and false statements to hedge fund customers and (2) misled customers about costs and fees relating to the hedge fund investments. Department of Enforcement v. Robert R. Tweed Disciplinary Proceeding No. 2015046631101 (July 5, 2018).
FINRA initially lodged a Complaint against Tweed alleging that he accumulated at least $1,600,000.00 from twenty-three customers through the use of a misleading and false private placement memorandum concerning the offer and sale of interests in an investment fund established and controlled by Tweed called Athenian Fund LP. Apparently, Athenian money was slated to be invested by Tweed in a fund utilizing an algorithm for the trading of quantitative stocks. Tweed reportedly placed Athenian funds in different investments than what he represented, where he lost customers’ funds without apprising them of his activities.
FINRA determined that Tweed reportedly failed to disclose: costs and fees relating to the Athenian investment; his replacement of the entity responsible for trading Athenian capital with another person responsible for trading and managing the assets of customers; Tweed’s compensation from management fees accumulated by Athenian; and his inability to establish an Athenian securities account as a result of being subject of customer initiated investment related arbitration claims and complaints.
FINRA’s Extended Hearing Panel concluded that Tweed made omissions and misrepresentations to customers; conduct violative of FINRA Rule 2010.
Tweed is also subject of a SEC Complaint which has alleged that Tweed and his firm, Tweed Financial Services, Inc., misled and concealed facts from customers about prospective profits of Athenian Fund; conduct violative of Advisors Act Section 206(4) and Rule 206(4)-8(a)(1) and (2). Securities and Exchange Commission v. Tweed Financial Services Inc. and Russell Tweed, Case No. 2:17-cv-7251 (Oct. 2, 2017).
FINRA Public Disclosure confirms that Tweed is referenced in eleven customer initiated investment related disputes pertaining to accusations of his misconduct while employed with Concorde Investment Services LLC, United Securities Alliance, Capwest Securities, Inc. and National Planning Corporation.
Specifically, on September 9, 2009, a customer filed an investment related complaint involving Tweed’s conduct in which the customer requested $200,000.00 in damages based upon allegations that Tweed failed to conduct due diligence prior to making recommendations of Pennbridge Hotel Indigo, Waterford and Canyon Creek private placement transactions. Tweed is subject of a customer initiated investment related arbitration claim where the customer was awarded $338,000.00 in damages based upon Tweed having been found liable on the customer’s claims of: violation of federal and state securities laws; violation of NYSE, NASD and FINRA rules; breach of the covenant of good faith and fair dealing; breach of fiduciary duty; suitability; negligence; omissions; concealment; misrepresentation; and fraud concerning tenant-in-common private placements. FINRA Arbitration No. 11-01909 (May 25, 2012).
Subsequently, Tweed was subject of a customer initiated investment related arbitration claim in which the customer was awarded $52,083.00 in damages supported by Tweed being found liable for breaching his fiduciary and contractual obligations to the customer, effecting unsuitable transactions; negligently handling the customer’s investment portfolio; and committing fraud in reference to Cabot Turfway Ridge Acquisition and Watersong Apartments. FINRA Arbitration No. 10-02633 (July 16, 2012). Additionally, on July 30, 2015, a customer filed an investment related complaint involving Tweed’s conduct in which the customer alleged that unauthorized trades were effected in the customer’s account, misrepresentations had been made to the customer concerning limited partnership investments, and the customer’s assets had been misappropriated.
Thereafter, a customer initiated investment related arbitration claim involving Tweed’s activities was resolved for $160,000.00 in damages founded on allegations including deceptive and unfair trading practices, omissions and misrepresentation, and elder abuse relating to the customer’s 1031 Exchange transactions. FINRA Arbitration No. 15-03276 (Nov. 8, 2016). Tweed is referenced in a customer initiated investment related written complaint on May 9, 2018, where the customer sought $75,000.00 in damages based upon accusations of misrepresentation and poor performance on direct investment products.
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