Neal Charles Moon, and Natalie E. Fogiel Moon, both of Dallas, Texas, and stockbrokers formerly registered with Waddell & Reed, have been charged by Financial Industry Regulatory Authority (FINRA) Department of Enforcement in a Complaint alleging that the individuals effected unauthorized private securities transactions. Department of Enforcement v. Moon et al., No. 2015046926801(July 8, 2016).
According to the Complaint, between February of 2012 to August of 2015, nine private securities transactions were effected by Neal Charles Moon, and six had been effected by Natalie Moon, wherein $2,640,000.00 in monies were invested from customers in the aggregate. Apparently, these private securities transactions had not been disclosed to Waddell and Reed prior to the individuals engaging in them. Consequently, FINRA’s Department of Enforcement alleged that the individuals violated FINRA Rules 2010 and NASD Rule 3040.
The Complaint stated that in April of 2015, a Texas entity called NMN Boxx Holdings, LLC, was formed via the individuals to pool funds from firm customers for an investment in BOXX Technologies – a company which was in the business of creating and selling work stations and computer systems for researchers, analysts, and engineers.
Additionally, around 2013, Neal Moon was alleged to have effected private securities transactions involving Total Operating Investments 1, for purpose of an investment in Total Operating LLC – a business involved in the creation and maintenance of natural gas pipelines. The Complaint further stated that in 2012, Neal Moon partook in private securities transactions concerning CCBRAU – a Texas entity created for purposes of accumulating monies from customers for an investment in Hoffbrau Steaks.
The Complaint stated that FINRA’s personnel had been lied to by Neal Moon during which time that Moon was questioned regarding his involvement in the private securities transactions. Apparently, Neal Moon also falsely stated to his firm, via annual certifications, that he did not partake in any private securities transactions. Consequently, FINRA alleged that Neal Moon’s conduct in this regard was violative of FINRA Rule 2010.
FINRA Public Disclosure reveals that on April 10, 2014, a customer initiated investment related written complaint involving Neal Moon’s conduct was settled for $16,929.19 in damages based upon allegations that Moon, while registered with Waddell & Reed, Inc., made misrepresentations to the customer concerning the gains of a variable annuity, and omitted facts regarding contingent deferred sales charges of a managed allocation portfolio. Neal Moon was terminated from Waddell & Reed, Inc. on September 18, 2015, based upon allegations that he admitted to taking part in undisclosed private securities transactions.
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