(FINRA Case #2016050058801)
Brad C. Lawing (CRD #4986486, Springfield, Missouri)– An AWC (Accept, Waiver & Consent) was issued in which Lawing was assessed a deferred fine of $10,000, suspended from association with any FINRA member in all capacities for five months and ordered to pay $11,754, plus interest, in deferred restitution to customers.
Without admitting or denying the findings, Lawing consented to the sanctions and to the entry of findings that he disclosed nonpublic information of ten customers, including information about their account balances or investment strategies, to their former registered representative who had become statutorily disqualified due to a felony conviction.
The findings stated that Lawing’s member firm prohibited him from sharing nonpublic information about the representative’s former customers with her because of her statutorily disqualified status. Lawing sent more than one hundred text messages about his securities business to the representative without seeking or receiving the firm’s prior written approval. By doing so, Lawing prevented the firm from supervising those communications, creating a risk of harm to customers.
The findings also stated that Lawing recommended shares of a business development company—an illiquid and relatively risky security—to three customers, even though two of them did not satisfy the issuer’s suitability standards, and the third customer’s investment resulted in overconcentration. Lawing did not use reasonable diligence to ascertain those customers’ financial situation, risk tolerance and other factors affecting the investment’s suitability.
In one case, Lawing recommended the shares by mail, without speaking with the customer, and in the other cases, he did not collect enough information about the customer’s investment profile to show that the security or the concentration was suitable.
Lawing worked for Cambridge Investment Research, Inc. (CRD 39543) from 2010 to 2017.
The suspension is in effect from November 20, 2017, through April 19, 2018.
If you feel you have been misled or taken advantage by Brad C. Lawing or any Broker and wish to discuss legal action, please contact Darren Blum at 1-877-786-2552 (1-877-STOCK LAW), www.stockattorneys.com for a free consultation.