Frank H. Black and his Firm Southeast Investments NC failed to comply with applicable securities laws by retaining business related emails and to establish, maintain and enforce, supervisory systems.
Southeast Investments N.C. which was established in 1997 and has close to 130 registered representatives, according to FINRA. Forty percent of the firm’s revenues are from sale of variable annuities; 40% from mutual funds; and most of the remaining 20% from real estate investment trusts, according to the FINRA panel.
September 2012, FINRA requested documentation records for Southeast Investments’ branch office inspections. Mr. Black produced a three-page inspections calendar, listing 43 branch offices that he claimed he inspected between March 2010 and August 2012.
FINRA staff “found anomalies that undercut [Mr. Black’s] credibility and the reliability of the documents he provided to evidence his purported branch office inspections,” according to the decision. Four former Southeast Investments’ brokers testified that neither Mr. Black nor anyone from the firm ever conducted an inspection of their branch offices.
FINRA barred Frank H. Black the owner of a small independent broker-dealer after he testified falsely during an on-the-record interview and provided fabricated documents relating to his firm’s branch office inspections, according to a FINRA hearing panel decision.
Mr. Black said he had no comment about the FINRA panels decision to bar him from the industry. According to the FINRA hearing panel decision, Mr. Black and Southeast Investments denied the allegations.
If you wish to discuss claims against Southeast Investments NC and Mr. Frank J Black, please contact Darren Blum at 1-877-786-2552 (Stock Law), www.stockattorneys.com for a free consultation.