SEC Accuses First Standard Financial Company LLC Financial Advisor William Gennity of Securities Violations
Posted on Thursday, November 30th, 2017 at 10:27 am
Erez Law is currently investigating First Standard Financial Company LLC financial advisor William Gennity (CRD# 4913490) regarding excessive and unauthorized trading, use of discretion in customer accounts, unsuitable recommendations and other securities violations. Gennity has been registered with First Standard Financial Company LLC in Staten Island, New York since 2014. Previously, he was registered with Alexander Capital, L.P. in New York, New York from 2012 to 2014.
In February 2017, the United States Securities and Exchange Commission (SEC) opened an investigation against Gennity regarding, “Allege violations of 17(a) of Securities Act of 1933 and Section 10(b) Securities Act 1934 and Rule 10b-5.” 17(a) of Securities Act of 1933 pertains to “negligent securities fraud,” while Section 10(b) Securities Act 1934 and Rule 10b-5 “prohibits any act or omission resulting in fraud or deceit in connection with the purchase or sale of any security.”
In August 2016, the state of Montana opened an investigation into Gennity alleging, “Excessive trading; unauthorized trading; unauthorized use of margin; discretionary trading without authorization; unsuitable recommendation; charging excessive fees; fraud.” This is currently pending.
Gennity has been the subject of six customer complaints between 2014 and 2017, one of which was withdrawn, according to his CRD report:
August 2017. “Unauthorized trading and mis-information.” The customer is seeking $435,000 in damages and the case is currently pending.
July 2017. “Churning, breach of fiduciary duty.” The customer is seeking $200,000 in damages and the case is currently pending.
November 2016. “Client spoke to compliance on 11/08/2016 regarding an allegation of unauthorized trades that occurred on 10/26/2016 and 11/01/2016. Client alleges that he informed the rep on 11/1 that he did not wish to own the additional 6000 shares of the security he already owned that was purchased on his behalf on 11/26. He further alleges that instead of cancelling the trade on 11/1, the rep sold the position against his wishes resulting in a loss. He requested that both trades be cancelled and that he not be liable for any incurred losses. Total transactional loss was approximately $12,000.” The case was settled for $12,029.52.
April 2016. “Customer alleges unsuitability as well as excessive trading and commissions.” The customer is seeking $660,000 in damages and the case is currently pending.
August 2014. “Churned & unsuitable concentrated position.” The customer sought $28,627.46 in damages and the case was settled for $14,900.
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 Standard Financial Company LLC may be liable for investment or other losses suffered by Gennity’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.