Gregory Peter Hahn, a former broker with Chicago, Illinois based Chase Investment Services Corp., submitted a Letter of Acceptance, Waiver and Consent in which he consented to the entry of the Financial Industry Regulatory Authority's (FINRA) findings that he had customers sign certain documents, such as risk disclosure forms, that were otherwise incomplete because the forms were missing information such as the date and dollar amount of the securities transaction. FINRA stated that Mr. Hahn maintained those forms in his files for future use, and on several occasions, Mr. Hahn used one of those blank pre-signed forms in connection with a transaction or transfer authorized by a customer. For example, Mr. Hahn inserted the dollar amount of the transaction and other information on a risk disclosure form that the customer had previously signed, and then he submitted the form to his member firm. FINRA also stated that the firm detected Mr. Hahn's use of blank pre-signed forms and subsequently warned him about engaging in such conduct in the future. Following the warnings, Mr. Hahn used a blank pre-signed form in connection with one other authorized transaction. Mr. Hahn, of Webster, New York, was fined $7,500 and suspended from association with any FINRA member in any capacity for six months. The fine must be paid either immediately upon Mr. Hahn's re-association with a FINRA member firm following his suspension, or prior to the filing of any application or request for relief from any statutory disqualification, whichever is earlier. Mr. Hahn's suspension is in effect from March 18, 2013 through September 17, 2013.
Broker-dealers must establish and implement a reasonable supervisory system to protect customers from broker misconduct. If broker-dealers do not establish and implement a reasonable supervisory system, they may be liable to investors for damages flowing from the misconduct. As a result, investors who have suffered damages due to broker misconduct can bring forth claims to recover losses against broker-dealers like Chase Investment Services, which should have prevented the above described illegal activity. Have you suffered losses in your Chase Investment Services Corp. account due to broker misconduct? If so, call Robert Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation.
The most important of investors' rights is the right to be informed! This Investors' Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 30 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues. The lawyers at our law firm are devoted to protecting investors' rights throughout the United States and internationally! Please visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at pearce@rwpearce.com for answers to any of your questions about this blog post and/or any related matter.
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