SERVING CLIENTS NATIONWIDE

In Wake of Unsuitable Recommendations Action, FINRA Bars Lawrence John Fawcett for Failing to Cooperate with Outside Business Activities Investigation

Months after serving a suspension and paying fines and disgorgment to settle charges that he unsuitably recommended mutual funds in a customer's IRA account, FINRA barred former Westpark Capital, Inc. (Los Angeles, CA) broker Lawrence John Fawcett aka Larry Fawcett Jr after he failed to cooperate with a new investigation into his outside business activities.

AWC #2015043939101 (FINRA Fines & Suspends Fawcett for Suitability, December 2017)

AWC #2017056329801 (FINRA Bars Fawcett for Failing to Cooperate, March 2018)

In December 2017, FINRA fined and suspended Fawcett (CRD #5851474) for recommending unsuitable mutual fund transactions to a customer while associated with Salomon Whitney, or SW, Financial. Specifically, FINRA found that Fawcett recommended an IRA customer sell $865,000-worth of Class A mutual fund shares to purchase Class A shares of 14 different mutual funds from 12 different mutual fund families.

Investigators found this recommendation was unsuitable given the customer's preservation of capital, 1-3 years investment horizon, and "save for retirement" investment purpose and objectives, because the new mutual funds' documentation described the funds' objectives as capital appreciation and growth, as opposed to preservation. Furthermore, the new funds' were purportedly not designed to be held for as long as 1-3 years, and the purchase variety failed to include breakpoint discounts.

FINRA ordered Fawcett to pay $22,714.30 in disgorgment of commissions received in connection with the unsuitable recommendations and transactions.

The present AWC for failing to cooperate with staff holds that FINRA opened an investigation into Fawcett's outside business activities, but he failed to provide requested information and documents.

Fawcett's BrokerCheck record lists a 2014 award/judgment for $30,000 arising from a customer dispute that had alleged unauthorized trading and unauthorized use of margin. A 2015 complaint alleging unauthorized trading remains pending.

If you have invested with Lawrence "Larry" John Fawcett Jr or with any broker or financial adviser whose unsuitable recommendations in contravention with your investment objectives, or whose excessive trading has resulted in exorbitant commissions and fees, or has otherwise proven harmful to your investments or interests, please call The Law Offices of Jonathan W. Evans & Associates at (800) 699-1881 for an investigation and consultation.

Categories