Sean Donovan Casterline (also known as Sean Donavan Casterline), of Maitland, Florida, a stockbroker formerly registered with Delta Securities Company, has been fined $5,000.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity founded on findings that he engaged in unauthorized private securities transactions while he was employed by Delta Securities Company. Letter of Acceptance, Waiver, and Consent No. 2019061365002 (December 29, 2021).
According to the AWC, during the time that Casterline was registered with Delta Securities, he disclosed that he was an entity’s Managing Director of Private Equity. He mentioned that this outside business activity concerned raising capital to create and run senior living facilities. The AWC states that Casterline was approved for this activity, but he agreed with the securities broker dealer to refrain from private securities transactions. FINRA states that Casterline was slated to become part-owner of Delta Securities and had agreed to refrain from selling away while the company’s ownership changes were made. Casterline failed to comply with that agreement.
FINRA states that between May of 2018 and June of 2019, before any ownership change was made, Casterline took part in private securities transactions. This included Casterline soliciting investments in the entity which he directed. The AWC states that Casterline asked customers to purchase securities in the entity, and he spoke with them concerning their investments. The prospective investors were supplied with subscription agreements, private placement memorandums, and offering materials. FINRA states that prospective investors consulted with Casterline regarding funding the investments. Twenty investors collectively purchased $1,500,000.00 in membership units, resulting in $116,325.00 in selling compensation for Casterline.
According to the AWC, Casterline was not permitted under Delta Securities’ policies from engaging in private securities. Casterline violated FINRA Rules 2010 and 3280 by taking part in the securities transactions away from Delta Securities.
FINRA Public Disclosure shows that on August 5, 2021, a customer filed an investment related arbitration claim concerning Casterline’s activities where the customer sought $175,000.00 in damages based upon allegations of sales practice violations relating to private placements when Casterline was associated with Delta Securities Company. The claim states that the customer sustained losses on Tuscan Gardens Growth and Income Fund LLC.
Casterline has been employed by Delta Securities Company as a stockbroker since May 7, 2018, and registered with Delta Advisory Group Inc. as an investment adviser representative since November 26, 2002. He is also an indirect owner of Delta Securities Company as of June 6, 2019.
