FINRA suspends Chelsea Financial Broker George Warner for Filing Inaccurate Client Records

shutterstock_61142644-300x225The investment fraud attorneys at Gana Weinstein LLP are currently investigating Chelsea Financial Services (Chelsea Financial) broker George Warner (Warner). According to BrokerCheck Records, Warner has been subject to a regulatory matter in which the Financial Industry Regulatory Authority (FINRA) sanctioned Warner for the violation of the securities laws.  In addition, Warner has been subject to termination from two firms of employment and a customer complaint.

In November 2014, Warner was permitted to resign from NFP Advisor Services for changing customer documents and information after the clients had signed the documents.  In June 2013, Warner was discharged from LPL Financial LLC for getting customer signatures on account transfer forms that were blank.

Subsequently, in April 2017, FINRA found that Warner altered customer documents without customer knowledge or permission on over five occasions in which he included customer liquidity needs, net worth, annual income, alternative investment forms, and an IRA application. By altering the firm’s documents, Warner impeded on the firm’s ability to maintain accurate records. Without admitting or denying the findings, Warner consented to the sanctions and to the entry of findings. Consequently, FINRA imposed a $5,000 fine and 30 day suspension.

In addition, Warner has been subject to a customer dispute. In August 2009.  a customer alleged that Warner purchased CIT bonds instead of CITI Corp bonds. The case was settled at $225,000.

Brokers are obligated to accurately maintain their firm’s books and records. Filing incomplete, inaccurate, or misleading information is not consistent with FINRA’s high standards of honor and equitable principles of trade. All FINRA member firms have the duty to supervise their brokers in order to prevent security fraud.   The duty to supervise is a critical component of the securities regulatory scheme. Regulatory authorities such as the SEC and FINRA have steadily heightened the supervisory obligations of brokerage firms in recent years. Supervisors have an obligation to respond vigorously to indications of irregularity, often times referred to as “red flags.” A supervisor cannot disregard red flags and must act decisively and specifically to prevent improper conduct by their brokers.

Warner entered the securities industry in 1992 and has been registered with Chelsea Financial since September 2017. From June 2017 to July 2017 and from March 2017 to April 2017,  Warner was registered with Dominion Investor Services, Inc. From December 2014 to March 2017, Warner was registered with IFS Securities. From July 2013 to December 2014, Warner was registered with NFP Advisor Services, LLC. From April 2003 to June 2013, Warner was registered with LPL Financial LLC.

Investors who have suffered losses may be able recover their losses through securities arbitration.  The attorneys at Gana Weinstein LLP are experienced in representing investors in cases of selling away and firms failure to supervise. Our consultations are free of charge and the firm is only compensated if you recover.