Sperry Randall Younger of Garden City New York the Chief Executive Officer and Chief Compliance Officer of NMS Capital Advisors LLC has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity according to an Extended Hearing Panel Decision containing findings that (1) Younger falsified investment banking transactions executed through the firm (2) Younger failed to supervise a registered securities principal to ensure the principal’s compliance with restrictions placed on him by FINRA and (3) Younger provided false information to FINRA in an investigation into his misconduct. In the Matter of the Department of Enforcement v. Sperry Randall Younger et al. Decision No. 2013037522501 (Jan. 8, 2018).
According to the Decision, Younger was the supervisor for a principal, Trevor Michael Saliba, while Younger was the Chief Executive Officer at NMS Securities. Evidently, FINRA placed restrictions on Saliba’s role with NMS, initially claiming that he was not authorized to be a principal of the firm or engage in securities business in a company he controlled or owned. Those restrictions were apparently effected on Younger during a time that Saliba, then Chief Executive Officer and Chief Compliance Officer of NMS, had been investigated by the Securities and Exchange Commission (SEC).
Evidently, Saliba executed at least ten investment banking agreements as a principal of NMS despite the restrictions prohibiting his activities. Apparently, those agreements had been signed by Saliba in the capacity of Chief Executive Officer or another high ranking position with NMS. FINRA stated that Saliba’s involvement in the investment banking agreements showed that he was significantly involved in the firm’s management. Evidently, Saliba engaged in these arrangements in violation of restrictions placed on him by FINRA. Supposedly, Younger’s involvement as Chief Executive Officer was nothing more than a façade because it was Saliba who bound the firm to the investment banking agreements. FINRA found Younger’s failure to supervise Saliba as violative of FINRA Rules 2010 and 3010.
Moreover, the Decision stated that Younger lied about his creation of memos in reference to investment banking details. Apparently, Younger claimed that he had made memos for all investment banking deals, and would transmit it to the firm after signing the memos. Evidently, the memos to which Younger referred were not credible firm records as they did not reflect Younger’s approval of the transactions. FINRA found that Younger’s false testimony was violative of FINRA Rules 2010 and 8210.
FINRA Public Disclosure confirms that Younger has been identified in three additional customer initiated investment related disputes containing allegations of his misconduct while employed with J. Streicher Capital LLC and Charles Morgan Securities. Specifically, on June 17, 2010, a customer filed an investment related complaint regarding Younger’s activities where the customer sought $21,872.00 in damages supported by accusations that while Younger was associated with Charles Morgan Investments, Younger misappropriated the customer’s assets, and forged the customer’s signature on documents to effect investment transactions.
Then, on April 22, 2015, a customer initiated investment related complaint involving Younger’s activities was settled to resolve accusations of Younger’s failure to undertake capital raising and advisory services for a customer according to an agreement Younger executed while associated with J. Streicher Capital LLC. Another customer initiated investment related complaint concerning Younger’s conduct was resolved for $10,088.75 in damages on May 27, 2015 founded on allegations that Younger violated a contract by failing to perform advisory services and capital raising services for a customer. Younger is also the subject of a customer initiated investment related written complaint on April 5, 2016 in which the customer requested $54,466.00 in damages based upon accusations that Younger breached an advisory and capital raising agreement.
Younger’s registration with NMS Capital Advisors LLC has been terminated as of September 16, 2016. Since October 21, 1996, he has been associated with fourteen different broker dealers, five of which have been expelled by securities regulators for violation of federal securities laws or are otherwise defunct.
