Kevin Graetz has settled a FINRA complaint accusing him of failing to report federal and state tax liens against him amounting to over $1 million over nearly seven years. FINRA’s Form U4 mandates registered representatives to disclose whether there are any unsatisfied judgments or liens against them. In amendments, Graetz filed to his form in February 2013, January 2014, and February 2014, he “inaccurately and misleadingly” stated that he was not subject to any unsatisfied tax liens, a FINRA order accepting the offer of settlement stated.
Kevin Graetz was employed by Paulson Investment Company in New York until April 28.
He updated his Form U4 to disclose the unsatisfied liens in May 2014, subsequent to FINRA finding the liens in the midst of a cycle examination of the firm. FINRA says Graetz’s “failure to disclose the tax liens was willful in that he knew that he owed significant unpaid taxes and that he was subject to unsatisfied tax liens.”
Throughout the years, the IRS recorded several federal tax liens against Graetz, which include liens of over $43,000 in February 2007; $16,500 in February 2009; $179,000 and $206,000 in August 2009; $370,000 in September 2009; $206,000 and nearly $56,000 in September 2010; and nearly $96,000 in July 2011. On January 18, 2013, the State of Connecticut recorded a tax lien against Graetz in the amount of $25,938. According to FINRA, Kevin Graetz was notified of each lien. FINRA has since suspended Graetz for six months and fined him $10,000.
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