Investigation of Former Westpark Capital, Inc. Financial Advisor Lawrence Fawcett Jr.
Posted on Saturday, June 23rd, 2018 at 9:35 am
Erez Law is interested in speaking with investors who may have suffered losses due to investments with former Westpark Capital, Inc. financial advisor Lawrence Fawcett Jr. (CRD# 5851474). Fawcett was registered with Westpark Capital, Inc. in Los Angeles, California from 2015 to March 2018, when he was terminated regarding, “Conducted business from a non-disclosed location and made false representations to the firm.” Previously, he was registered with Salomon Whitney Financial in Farmingdale, New York from 2013 to 2015.
In March 2018, FINRA barred Fawcett after he consented to the sanction and to the entry of findings that he failed to produce documents and information requested by FINRA, and failed to appear for on-the-record testimony, in connection with an investigation regarding Fawcett’s outside business activities.
In January 2018, FINRA sanctioned Fawcett to $2,500 in civil and administrative penalties and fines, $22,714.30 in disgorgement and suspended him for 15 business days after he consented to the sanctions and to the entry of findings that he recommended unsuitable mutual fund transactions to a customer. “The findings stated that the customer transferred mutual funds he held at another firm to his IRA account at Fawcett’s member firm. All of the mutual funds were comprised of Class A shares from the same fund family. Three days later, based on Fawcett’s recommendations, the customer sold the mutual funds and used the proceeds totaling approximately $865,000, to purchase Class A shares of 14 different mutual funds from 12 different fund families. Fawcett’s recommendation to switch to the new mutual funds was unsuitable because the new mutual funds’ investment objectives were not consistent with the customer’s investment objective of capital preservation, Class A shares, which are generally appropriate for investors with long-term investment horizons, were not consistent with the customer’s shorter investment horizon, and by purchasing mutual funds from 12 different mutual fund families, the customer did not receive available breakpoint discounts.”
Fawcett has been the subject of four customer complaints between 2013 and 2018, one of which was denied, according to his CRD report:
April 2018. “Churning, negligence, unsuitability, unauthorized trading, breach of contract.” The customer is seeking $260,038 in damages and the case is currently pending.
September 2015. “unauthorized trading.” The customer is seeking $20,000 in damages and the case is currently pending.
November 2014. “Unauthorized trading, unauthorized use of margin.” The customer sought $214,000 in damages and the case was settled for $30,000.
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, Westpark Capital, Inc. may be liable for investment or other losses suffered by Fawcett’s customers.
Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If 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.