According to FINRA’s December 2013 Disciplinary Actions, David C. Key (CRD #5339149, Registered Principal, Baton Rouge, Louisiana) recently submitted a Letter of Acceptance, Waiver and Consent in which he was barred from association with any FINRA member in any capacity.
Without admitting or denying the findings, Key consented to the described sanction and to the entry of findings that he converted approximately $308,000 from member firm customers and improperly used the funds to repay gambling debts. The findings stated that customers allegedly gave Key funds to invest in firm products, and based on his representations, believed their funds had been invested. Key allegedly provided some customers with fictitious correspondence on firm letterhead that thanked the customers for their recent investments.
The White Law Group is investigating the liability that Key’s employer may have for failure to properly supervise Key and his activities. Brokerage firms have a responsibility to supervise their financial advisors and to ensure that they are complying with FINRA Rules.
According to his FINRA Broker Report, David C. Key was registered with PFS Investments, Inc. in Baton Rouge, Louisiana from June 2007 through May 2012.
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