FINRA Expelled Fox Financial Management Corporation and Suspends Chief Compliance Officer Brian Andrew Murphy & President James Edward Rooney Jr. (FINRA Case #2012030724101)

Fox Financial Management Corporation (Carrollton, Texas), Brian Andrew Murphy (CRD #4743164, Frisco, Texas) and James Edward Rooney Jr. (CRD #1857754, Carrollton, Texas). 

Fox Financial Management Corporation (Carrollton, Texas), firm was expelled from FINRA® membership and fined $100,000.

Brian Andrew Murphy (CCO)was fined $25,000, barred from association with any FINRA member in any principal or supervisory capacity, and suspended from association with any FINRA member in any capacity for three months effective March 6, 2017 through June 6, 2017.

James Edward Rooney Jr. (President) was fined $50,000, barred from association with any FINRA member in any principal or supervisory capacity, and suspended from association with any FINRA member in any capacity for six months effective March 6, 2017 through September 6, 2017

The sanctions were based on findings that the firm, Murphy and Rooney failed to reasonably supervise the private securities transaction of a firm registered representative and failed to record the transactions on the firm’s books and records. The findings stated that the representative engaged in private securities transactions and received selling compensation (both transaction-based compensation and profit participation interests). Nevertheless, the firm, Murphy and Rooney failed to record the representative’s private securities transactions on the firm’s books and records, and failed to supervise the transactions as if they were executed though the firm.

The findings also stated that the firm, Murphy and Rooney failed to establish, maintain, and enforce written supervisory systems and procedures that were reasonably designed to ensure compliance with NASD Rule 3040.

Further, the firm, Murphy and Rooney failed to enforce the firm’s procedures by failing to ensure that all the requirements of Rule 3040 were met, and to request copies of duplicate statements from the executing broker-dealer with respect to the representative’s RIA and hedge fund activities.

If you had an account with Fox Financial Management Corporation or Murphy and Rooney and need to pursue legal action contact www.stockattorneys.com for a free consultation.