According to a FINRA Disciplinary Action disclosure, Christopher Somes Babcock (CRD #5004907, Wayne, Pennsylvania) 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, Babcock consented to the sanction and to the entry of findings that he received approximately $160,000 from customers of his member firms, after he had instructed the customers to wire monies from their firm accounts to their personal bank accounts and to then either wire money to him or write a check payable to him. The findings stated that the money was given to Babcock with the intent that it be used for investment purposes. However, after receiving the funds, Babcock failed to invest the funds as the customers expected. Instead, Babcock converted the funds to his own use and benefit. In some instances, Babcock would deposit the funds in his personal brokerage account or a third party’s personal brokerage account.
The findings also stated that Babcock mailed written account summaries to a customer without either of his firms’ knowledge and review. The firms were thereby prevented from fulfilling supervisory obligations regarding non-electronic business correspondence and from preserving the correspondence in conformance with recordkeeping rules. At least two of the statements forwarded to the customer falsely inflated the value of the customer’s portfolio.
For the full details of FINRA’s investigation, see FINRA Case #2011027329601.
In addition to the regulatory action discussed above, Mr. Babcock’s FINRA Broker Report indicates that he has also been the subject of 3 customer complaints. These complaints have alleged claims involving selling away, promissory notes, and unsuitable investments. His Broker Report also indicates that he was employed by Morgan Stanley Smith Barney from June 2009 through February 2011 and Citigroup Global Markets from December 2007 through June 2009.
The foregoing information, which is publicly available on FINRA’s website, is being provided by The White Law Group. The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Boca Raton, Florida.
For a free consultation with a securities attorney, please call The White Law Group at 312/238-9650. For more information on the firm, visit https://www.whitesecuritieslaw.com.