FINRA fined and suspended former Penserra Securities (Orinda, CA) broker Peter Gary Plaut for engaging in four outside business activities while registered with Penserra, including serving as a broker at a foreign broker-dealer, without prior written notice, including the participation in private securities transactions through soliciting bond sales/purchases, resulting in commissions.
In AWC #2018060178301, FINRA found that stockbroker Peter Plaut (CRD #2174346) sold over $200,000-worth of high-yield bonds and received over $10,000 in commissions in his role as broker at the foreign broker-dealer, all without prior notice to Penserra.
Plaut also purportedly referred an investor to a real estate investment and received $70,000 in referrals fees without providing prior written notice to Penserra.
The report states that broker Plaut's third outside business activity pertained to establishing an investment advisory consulting firm with the expectation that this entity would receive compensation.
Finally, FINRA found that Plaut contracted with a company and educated its principals about litigation funding, receiving $21,000 for his work, which he similarly failed to disclose to Penserra through prior written notice.
FINRA also found that Plaut, who later became associated with Oberon Securities, inaccurately answered "no" to a compliance questionnaire that asked whether he was engaged with outside business activities.
The findings indicate that upon joining Oberon, Plaut solicited more transactions in high-yield bonds, with sales totaling over $500,000 and yielding nearly $26,000 in commissions. He also purportedly received a salary from the aforementioned investment advisory consulting firm of $83,012 and provided more litigation funding training, receiving $10,000 for that service, and failed to provide Oberon with prior written notice of all of these outside business activities.
If you have invested with ex-Penserra Securities registered representative Peter Gary Plaut or with any broker or financial adviser who has failed to disclose involvement in an outside business activity—such as simultaneously acting as a broker for another firm—that may have proven to be a conflict of interest or otherwise harmful to your investments or finances due to unsuitably recommendations to invest in the OBA or otherwise, please call an experienced FINRA arbitration attorney at The Law Offices of Jonathan W. Evans & Associates at (800) 699-1881 for an investigation and consultation.