Legal Matters

Donna Jean Hines (CRD #4275524) was barred by FINRA from serving as a financial advisor in all capacities in November 2021 after refusing to appear for on-the record testimony. FINRA requested Hines’s testimony in connection with its investigation into whether Hines facilitated a client’s bitcoin investment away from Cetera Advisors, her member firm, for compensation. Hines initially cooperated with FINRAs investigation but ceased doing so in September 2021. Hines submitted a Letter of Acceptance Waiver and Consent accepting FINRA's findings and sanction. Hines first associated with a FINRA in 2000 before working for Cetera Advisors LLC. She became registered with FINRA as a General Securities Representative through her association with Cetera. After seven years of employment, Cetera filed a Uniform Termination notice for Hines in May 2021, terminating her FINRA registration. FINRA Rule Violation FINRA Rule 8210(a)(1) states that FINRA has the right to “require a member, person associated with a member, or any other person subject to FINRA's jurisdiction [...]

Jeffrey Dampf (CRD #5676205) was barred from association with FINRA in all capacities on October 1, 2021. FINRA issued an Acceptance, Waiver, and Consent for Dampf after he refused to provide on-the-record testimony or produce documents and information requested by FINRA in connection with its investigation into allegations that he misappropriated funds from elderly individuals. DAMPF TERMINATED Jeffrey Dampf was permitted to resign from his thirteen-year-long position as a sales representative of Primerica/PFS in September 2021 after the firm became aware of the allegations. Primerica/PFS claimed the firm "had no such information and [was] unable to locate any publicly available information to confirm or refute the alleged charges." JEFFREY DAMPF THEFT CHARGES Jeffrey Dampf allegedly abused his capacity as the power of attorney and accountant for two senior siblings. The Ocean County Prosecutor's Office in New Jersey found that Dampf misappropriated funds entrusted to him while caring for the elderly clients. According to the Prosecutor's office, Dampf attempted to electronically [...]

WestPark Capital, of Los Angeles California, and its CEO, Richard Rappaport, have been sanctioned and fined $280,000 collectively by the Financial Industry Regulatory Authority (“FINRA”) for misrepresentations, omissions, and supervisory failures regarding the sale of promissory notes in WestPark’s parent company, WestPark Capital Financial Services (“WPCFS”). FINRA has also suspended Rappaport from the securities industry for his wrongdoing. As previously covered in this space, WestPark has prior run-ins with FINRA regulators and has racked up numerous customer complaints. In fact, the firm's status as employer of 35 registered representatives who had been associated with one or more disciplined firms in a registered capacity within the previous three years associated with the firm, placed WestPark under heightened obligations to record its representatives’ phone calls with customers. FINRA found that WestPark violated its “Taping Rule” and sanctioned the firm for this misconduct. WESTPARK AND RAPPAPORT BACKGROUND WestPark has been a FINRA member since 1996. It is an investment banking and full-service securities [...]

Merrill Lynch has been fined $1.5 million by the Financial Industry Regulatory Authority (“FINRA”) for its failure to implement written supervisory procedures and systems reasonably designed to achieve compliance with industry regulations and preventing the consequences of short positions in municipal securities. FINRA's Requirements In February 2015, FINRA advised Merrill to take prompt action to cover its existing short positions in municipal securities by the end of the month. In March 2015, the firm informed FINRA that it had 255 short positions aged more than 30 days and not within the firm’s possession or control, including 83 short positions in municipal securities. In July 2015, FINRA reminded member firms that their written supervisory procedures must include processes for detecting, resolving, and preventing the consequences of municipal short positions and comply with law requiring firms to take prompt steps to obtain physical possession or control of municipal securities that are short more than 30 days. Between March and December 2015, the [...]