Roger Charles Faubel of Staten Island New York a stockbroker formerly registered with Chelsea Financial Services has been suspended by Financial Industry Regulatory Authority (FINRA) from associating with any FINRA member in any capacity supported by allegations that the stockbroker failed to comply with an arbitration award or settlement agreement or otherwise confirm his compliance with FINRA. FINRA Case No. 18-02634 (June 11, 2019).
FINRA Public Disclosure reveals that Faubel has been ordered to cease and desist from violating securities laws in the State of Ohio based upon accusations that he sold elderly customers bank notes and certificates of deposit without informing them that interest payments on those investments could fall to zero and that the maturities on the products had exceeded the customers’ life expectancies. Order No. 19-013 (May 3, 2019).
According to the regulator, customers in Ohio, Pennsylvania and Kentucky had been falsely told that their investments including corporate bonds and notes were short term instruments paying ten percent interest. Faubel violated Ohio Revised Code 1707.44(B)(4) in this regard. Also, the regulator indicated that the maturity dates of these products and the interest rates had been fraudulently misrepresented by Faubel in violation of Ohio Revised Code 1707.44(G). Faubel also effected the sale of unsuitable securities to elderly customers in violation of Ohio Administrative Code 1301:6-3-19(A)(5).
Faubel has also been suspended from associating with any FINRA member in any capacity based upon allegations that mutual fund shares had been purchased by Faubel for a customer’s account without the customer’s knowledge or consent during the time that Faubel was associated with Saxony Securities Inc. Faubel did not have permission to effect trades in the customer’s account on a discretionary basis. The stockbroker violated NASD Rule 2110 and IM-2310-2 in this regard.
Faubel has been identified in four customer initiated investment related disputes concerning accusations of his misconduct while employed by securities broker dealers including Saxony Securities. FINRA Public Disclosure confirms that a customer initiated investment related complaint concerning Faubel’s activities was resolved for $10,000.00 in damages founded on accusations that trades were executed without the customer’s permission during the time that Faubel was employed by Saxony Securities.
On February 1, 2019, a customer initiated investment related arbitration claim pertaining to Faubel’s conduct resulted in the customer being awarded $18,604.52 in compensatory damages supported by Faubel being found liable for causing the customer’s losses. FINRA Arbitration No. 18-02634. The Statement of Claim alleged misrepresentations by Faubel with regard to the safety of the customer’s principal invested in JP Morgan Structured CDs. Those investments failed to be suitable for the customer. The Statement of Claim also alleges fraud and the violation of Ohio Securities Act and Securities Exchange Commission (SEC) Rule 10b-5.
Faubel was discharged by National Securities Corp. on November 2, 2017 based upon accusations that the stockbroker misused confidential or proprietary customer information. He was registered with Chelsea Financial Services between November 30, 2017 and May 8, 2018.
