Timothy John Beall of Eau Claire Michigan a stockbroker registered with National Planning Corporation is the subject of a customer initiated investment related arbitration claim where the customer requested $700,000.00 in damages founded on allegations that (1) Beall executed the customer’s purchase of GrowCo Inc. away from National Planning Corporation without the securities broker dealer’s permission (2) Beall made unfounded statements concerning the private investment and (3) Beall effected transactions that were unsuitable for the customer. Financial Industry Regulatory Authority (FINRA) Arbitration No. 18-01675 (June 5, 2018).
FINRA Public Disclosure indicates that this is the first customer dispute involving accusations of Beall’s misconduct since he was sanctioned by FINRA. In fact, Beall has been fined $10,000.00 and suspended for nine months from associating with any FINRA member in any capacity based upon findings that Beall sold away from National Planning Corporation and engaged in unapproved outside business activities. Letter of Acceptance Waiver and Consent No. 2016050269501 (Mar. 8, 2018).
According to the AWC, from July of 2014 to April of 2016, Beall engaged in business activities involving a Colorado-based greenhouse building and leasing company in which Beall was, inter alia, a director and officer for the company. During that time, Beall also engaged in activities involving another privately-held company in which he was an employee. The AWC stated that those activities from which Beall received compensation had not been disclosed to the firm and were therefore unapproved. FINRA stated that Beall falsely represented to National Planning Corporation that he had disclosed all of his outside activities. FINRA found Beall’s conduct violative of FINRA Rules 2010 and 3270.
The AWC also stated that Beall facilitated two National Planning Corporation customers’ private securities transactions involving $500,000.00 worth of promissory notes. FINRA indicated that the notes had been issued by an affiliate of the Colorado-based greenhouse building and leasing company. Customers were provided documents from Beall to buy the promissory notes, and Beall arranged their purchases. Throughout this period, National Planning Corporation was not notified by Beall about his involvement in the promissory notes transactions. The AWC stated that the securities broker dealer was led to believe from Beall that he did not sell away. FINRA found Beall’s conduct violative of FINRA Rules 2010 and National Association of Securities Dealers (NASD) Rule 3040.
Beall’s employment with National Planning Corporation ceased on April 14, 2016.
