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WARNING! Impending Investigation–FINANCIAL AMERICA SECURITIES, JOHN RUKENBROD, PAUL CARLETON and CHRISTOPHER MCKENNA

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07
Aug

WARNING! Impending Investigation–FINANCIAL AMERICA SECURITIES, JOHN RUKENBROD, PAUL CARLETON and CHRISTOPHER MCKENNA

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Financial America Securities, Inc., John Rukenbrod, Paul Carleton, and Christopher McKenna

We are investigating allegations made by FINRA (the Financial Industry Regulatory Authority) against Financial America Securities Inc., John Rukenbrod, Paul Carleton, and Christopher McKenna.  FINRA recently fined Financial America Securities $27,500 and Rukenbrod $5,000 (in addition to suspending Rukenbrod two months in any principal capacity) for their failures to supervise transactions made by financial advisors, including Paul Carleton and Christopher McKenna.

John Rukenbrod was one of the founders of Financial America Securities in 1970.  He has also acted as the Chairman and President of the firm since 1974.  Rukenbrod was previously investigated by FINRA for failing to maintain and enforce adequate supervisory procedures.

In FINRA’s most recent investigation, FINRA alleged that from August 2009 to May 2011, Financial America Securities, through Rukenbrod, failed to adequately supervise Carleton’s and McKenna’s Cleveland, Ohio branch office.  FINRA also alleged that Rukenbrod failed to adequately supervise their sale of private placements from the Cleveland office, despite Rukenbrod’s awareness of Carleton’s and McKenna’s desire to sell these private placements.  Financial America Securities did not authorize Carleton or McKenna to sell these private placements, but they went ahead and sold them anyways.  Rukenbrod was also alleged to have failed to adequately supervise their emails.

Paul Carleton and Christopher McKenna eventually sold at least $800,000 in one private placement to at least three customers during May and June 2010, and they sold another $1.9 million in investments in a company called ASI.  FINRA alleged that Rukenbrod failed to inspect Carleton’s and McKenna’s Cleveland branch office since 2002, in violation of NASD Rule 3010(c).

Broker-dealers like Financial America Securities have a responsibility to adequately supervise all representatives who are registered through their firm, including investments sold by their registered representatives.  Broker-dealers also must take steps to ensure that their financial advisors follow all securities rules and regulations, as well as internal firm policies.  When broker-dealers fail to adequately supervise their registered representatives, they may be liable for investment losses sustained by customers.  If you have lost money through Paul Carleton, Christopher McKenna, or Financial America Securities and want to hear about ALL legal options, please visit https://www.israelsneuman.com/ or call us at 720-599-3505.

Israels & Neuman, PLC is a private law firm and is not affiliated with any government or law enforcement agency. Any investigation referenced in this blog is independent in nature and is being conducted by our law firm privately, not in conjunction with any government or law enforcement agency. All information contained in this blog should be deemed statements of opinion derived from the author’s review of public records, not statements of fact. This blog is advertising material and does not create an attorney client relationship, nor does it constitute legal advice. Everyone’s situation is different and the question of whether or not you have a claim will vary on a case-by-case basis. In contingent representation, clients may still be liable for costs.
10.0David P Neuman

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