Thursday, December 5, 2013


Kenneth Patrick Petticolas, a former broker at Cincinnati, Ohio based The O.N. Equity Sales Company, submitted an Offer of Settlement in which he consented to the described sanction and to the entry of the Financial Industry Regulatory Authority's (FINRA) findings that he participated in a private securities transaction sale of a life settlement contract to an investor for approximately $455,925, which was not conducted through his firm. FINRA stated that prior to participating in the sale of the life settlement contract, Mr. Petticolas did not provide any written notice to his firm regarding that transaction. O.N. Equity Sales Company's insurance affiliate prohibited its agents, including Mr. Petticolas, from participating in any kind of viatical or life settlement transaction, except that they were permitted to assist a client who owned a non-variable insurance policy and wished to sell it to a viatical company. The findings also stated that Mr. Petticolas received approximately $50,151.75 from the entity as compensation for the sale of the life settlement contract to the investor. Mr. Petticolas failed to respond in a timely manner to FINRA's requests for documents and information regarding private securities transactions or outside business activities. Mr. Petticolas, of Hayden, Idaho, was suspended from association with any FINRA member in any capacity for one year. The suspension is in effect from May 6, 2013 through May 5, 2014.

"Selling away" is the inappropriate practice of an investment professional who sells or solicits securities or investments not held, approved, or authorized by the brokerage firm with which the professional is associated. Under NASD and FINRA rules, brokerage firms must approve investments offered by their investment professionals and supervise its sales.

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. Therefore, investors who have suffered damages due to prohibited investment recommendations can bring forth claims to recover losses against broker-dealers like O.N. Equity Sales Company.

Have you suffered losses in your O.N. Equity Sales Company account due to similar misconduct by your broker? If so, call Robert Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation. Mr. Pearce is accepting clients with valid claims against O.N. Equity Sales Company stockbrokers who may have engaged in misconduct and caused investors losses.

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,, post a comment, call (800) 732-2889, or email Mr. Pearce at for answers to any of your questions about this blog post and/or any related matter.

No comments:

Post a Comment