Thomas Edward Sova of Baton Rouge Louisiana a stockbroker formerly registered with Hornor Townsend Kent Inc. has been fined $5,000.00 and suspended for five months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that Sova sold away from the firm by selling Woodbridge Group of Companies promissory notes. Letter of Acceptance Waiver and Consent No. 2018058498401 (Feb. 15, 2019).
According to the AWC, from May of 2016 to July of 2016, investors had been steered by Sova towards buying promissory note investments in a real estate investment fund called the Woodbridge Group of Companies. Apparently, at least three investors purchased the Woodbridge promissory notes through Sova, and one of those investments had accounts maintained at Hornor Townsend Kent Inc. Apparently, those customers bought $250,000.00 worth of promissory notes, and Sova was paid commissions of at least $5,000.00 for his efforts.
Apparently, during the time that Sova sold away from the firm, the firm’s policies mandated that all private securities transactions be disclosed to the firm and approved by the firm before the broker partook in the transaction. Nevertheless, the firm was not notified by Sova in writing in advance of him effecting the promissory notes sales. Moreover, Sova engaged in those transactions without having obtained the firm’s express permission. FINRA found that Sova’s engagement in private securities transactions was conduct violative of FINRA Rules 2010 and 3280.
FINRA Public Disclosure additionally reveals that a customer filed an investment related arbitration claim concerning Sova’s conduct where the customer sought $100,001.00 in damages based upon accusations that in May of 2016, during the time Sova was associated with Hornor Townsend Kent, an unregistered mortgage investment fund or real estate security had been sold to the customer. FINRA Arbitration No. 18-01170 (Apr. 23, 2018).
Sova was discharged by Hornor Townsend Kent on June 15, 2018 founded on allegations that he failed to be forthcoming with the firm about his outside business activities pertaining to his outside unregistered and unauthorized sales of securities; conduct violative of the firm’s policies.
