Daniel P. Bailey, of Rochester, New York, a stockbroker formerly registered with Source Capital Group, 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 made unsuitable securities recommendations to a customer. Letter of Acceptance, Waiver and Consent, No. 2015048237201 (June 1, 2017).
According to the AWC, in December of 2013, a speculative investment was pitched by Bailey to an elderly customer generating under $40,000.00 of income annually, wherein the customer was told by Bailey to place $125,000.00 into an international shipping entity for a speculative investment. The investment was reportedly meant to generate returns via the company’s operation and ownership of ships.
Apparently, more than twenty-five percent of the customer’s net worth was placed into the speculative products pursuant to Bailey’s recommendations; a transaction which FINRA stated was unsuitable based upon the customer’s tolerance for risk, objectives for investing, and financial profile. FINRA found Bailey’s conduct in this regard to be violative of FINRA Rules 2010 and 2111.
FINRA Public Disclosure reveals that on January 3, 2017, a customer initiated investment related arbitration claim involving Bailey’s conduct was settled for $125,000.00 in damages based upon allegations that Bailey, while associated with Source Capital Group, effected an unsuitable investment transaction in the customer’s account, in which Bailey allegedly claimed that the investment would yield over seven percent on an annual basis and provide profit sharing opportunities.
Bailey’s registration with Source Capital Group, Inc. was terminated on February 10, 2017. On March 3, 2017, he became associated with Advisory Group Equity Services Ltd. Since June 27, 1995, Bailey has been associated with six different broker dealers, four of which have been expelled by securities regulators for violation of federal securities laws or are otherwise defunct. #cockroach
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