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Former First Financial Equity Corporation Financial Advisor Robert Kerrigan Sr. Barred by FINRA

Posted on Tuesday, August 1st, 2017 at 7:39 pm    

Erez Law is currently investigating former First Financial Equity Corporation financial advisor Robert Kerrigan Sr. (CRD# 268516) regarding participating in outside business activities. Kerrigan has been registered with First Financial Equity Corporation in Scottsdale, Arizona from 2008 to 2015.

In May 2017, FINRA suspended Kerrigan for failure to comply with an arbitration award or settlement agreement or to satisfactorily respond to a FINRA request to provide information concerning the status of compliance.

In May 2016, Kerrigan consented to the sanction and to the entry of findings that he refused to provide documents and information requested by FINRA during an investigation into allegations that he participated in undisclosed private securities transactions and outside business activities. Selling away occurs when a financial advisor sells an investment to a client without his brokerage firm’s permission, the broker is selling investments away from the firm, or simply “selling away.” A broker might partake in this inappropriate practice to earn a commission he or she would otherwise have to pass up. These investment opportunities are not properly vetted by the associated brokerage firm and therefore exposes the client to risk. As a result, FINRA barred this individual from acting as a broker or otherwise associating with firms that sell securities to the public.

In August 2015, Arizona Corporation Commission issued a temporary order to cease and desist and notice of opportunity for hearing based on Kerrigan’s involvement in an undisclosed outside business activity, USA Barcelona.

Kerrigan has been the subject of six customer complaints between 1997 and 2016, two of which were denied, according to his CRD report:

October 2016. “Mrs. Steinhilber alleges unsuitable investment recommendation and negligent supervision against FFEC and Mr. Kerrigan.” The customer sought $99,999 in damages and the case was settled for $37,500.

June 2016. “Investment Losses for private transactions she conducted away from First Financial Equity Corporation.” The customer sought $270,000 in damages and the customer was granted damages in the amount of $260,084.

April 2001. “Client alleges that a variable life insurance policy was misrepresented and all the facts were not disclosed in January 2001.” The case was settled for $9,131.71.

July 1997. “Client alleged that the mortality costs of the two life insurance policies he purchased were not fully disclosed. Client is seeking to recover the difference between premiums paid and surrender value – claim is for $28,882.52.” The case was settled for $48,055.

Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, First Financial Equity Corporation may be liable for investment or other losses suffered by Kerrigan’s customers.

Erez Law represents investors in the United States for claims against former First Financial Equity Corporation financial advisor Robert Kerrigan Sr., who is alleged to participate in outside business activities. If you were a client of First Financial Equity Corporation or another firm, and have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.