Michael Anton Crowe, of Mesa, Arizona, a stockbroker formerly registered with Securities America, Inc., has been fined $5,000.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that he sold away from his firm. Letter of Acceptance, Waiver and Consent, No. 2016051678001 (Oct. 2, 2017).
According to the AWC, in April of 2016, Crowe made arrangements for Securities America customers JF and BF to meet with RS – the owner of Simply Smart Homes. Apparently, RS utilized Simply Smart Homes to purchase homes, fixed them and rent them out. Crowe and RS reportedly positioned JF’s and BF’s possible investment in Simply Smart Homes to allow the company to generate additional capital to buy and rent homes.
The AWC detailed that the customers, after being promised an eight percent annual return on investment, entered into a joint venture with Simply Smart Homes, where they contributed $50,000.00 in funds. The AWC reported that Crowe learned days after the customers made their investment in Simply Smart Homes that the company was sued for mishandling customer funds. Evidently, JF and BF only received $1,250.00 of their $50,000.00 back.
Crowe reportedly earned $2,500.00 for referring the customers to RS. Apparently, Crowe’s activities involving customers BF and JF were never made known to the firm, and Crowe never obtained the company’s written permission before participating in the private securities transactions. Consequently, FINRA found that Crowe’s conduct was violative of FINRA Rules 2010 and 3280. In addition to Crowe’s fine and suspension, he was disgorged of the financial compensation he obtained for referring the customers.
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