Former Source Capital Group, Inc. Financial Advisor Mark Robert Holcombe
Posted on Tuesday, May 23rd, 2017 at 3:21 pm
Erez Law is currently investigating former Source Capital Group, Inc. financial advisor Mark Robert Holcombe (CRD# 2901441) regarding outside business activities. Holcombe has been registered with Source Capital Group, Inc. in Westport, Connecticut from 2014 to 2015.
FINRA has suspended Holcombe from acting as a broker for nine months, from December 2016 to September 2017, and ordered him to pay $10,000 in civil and administrative penalties and fines.
According to the FINRA Acceptance, Waiver & Consent, it is alleged that Holcombe participated in two separate private securities transactions for a company in which he served as a chairman of the board of directors, without providing prior written notice to Source Capital Group, Inc. According to the AWC, “First, Holcombe sold two million shares of his own stock, of the company, to a third party for $100,000. Also, Holcombe participated in the company’s sale of senior secured convertible debentures to the same third party for $2.3 million by executing the note purchase agreement on the company’s behalf.” This type of wrongful conduct is called “selling away”.
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, Source Capital Group, Inc. may be liable for investment or other losses suffered by Holcombe’s customers.
Erez Law represents investors in the United States for claims against former Source Capital Group, Inc. financial advisor Mark Robert Holcombe, who is alleged to participate in outside business activities. If you were a client of former Source Capital Group, Inc. financial advisor Mark Robert Holcombe 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.