Did you lose money investing with Raymond Thomas (CRD# 1675282)?
Galvin Legal, PLLC is launching an investigation on behalf of investors who may have suffered losses investing with Raymond Thomas. If you suffered losses investing with Raymond Thomas, then Galvin Legal, PLLC may be able to help you recover your losses in a Financial Industry Regulatory Authority (“FINRA“) arbitration claim.
If you suffered losses and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
As of March 23, 2023, Raymond Thomas’s FINRA BrokerCheck Report contains the following:
BARRED: FINRA has barred this individual from acting as a broker or otherwise associating with a broker-dealer firm.
Disclosure Events
2 Customer Disputes
1 Regulatory Event
1 Employment Separation After Allegations
December 2, 2020 – An Offer of Settlement was issued in which Thomas was barred from association with any FINRA member in all capacities. Without admitting or denying the allegations, Thomas consented to the sanction and to the entry of findings that he engaged in outside business activities (OBAs) through a company he formed and controlled without providing prior notice to his member firm. The findings stated that Thomas functioned and held himself out as an officer, director and employee of the company. As the company’s principal officer, Thomas caused it to enter into a number of agreements, including a consulting agreement with an international venture capitalist. Many of those agreements show that Thomas had the reasonable expectation of compensation for the activities he performed on behalf of the company. Thomas was, in fact, compensated for the OBAs he performed. Thomas opened bank accounts in the company’s name, used those bank accounts to receive numerous third-party wire deposits from entities and individuals with whom the company conducted business and thereafter withdrew cash from the accounts or used the proceeds to pay for his personal expenses. The findings also stated that Thomas repeatedly provided false or misleading information to FINRA in an effort to conceal that he was engaged in OBAs. FINRA sent Thomas a personal activity questionnaire in anticipation of an examination of the branch office where he worked. On the questionnaire, Thomas falsely answered no to the question that asked whether he was engaged in any outside employment/activities or private securities transactions and the question that asked whether he served as an officer or director for any publicly traded or private company. In addition, FINRA interviewed Thomas on-site during the branch office examination. During the interview, FINRA asked Thomas whether he had participated in any business activities that were outside the scope of his relationship with the firm. In response, Thomas falsely told FINRA that he had not participated in any business activities outside the scope of his relationship with the firm. Further, Thomas falsely told FINRA that he had no other sources of income besides the commission payments he received from the firm. The findings
also included that when FINRA requested that Thomas identify all bank accounts that he controlled, for which he had signatory authority, or in which he had a beneficial interest, he did not identify any of the bank accounts that he had established for the company, even though he had withdrawn nearly $100,000 from those accounts in the preceding 14 months. FINRA also requested that Thomas complete a FINRA background questionnaire in anticipation of his appearing to provide on-the-record testimony. Thomas’ response to the background questionnaire was false or misleading. When the questionnaire asked Thomas to list all email addresses (business and personal) that he had used during the last five years, his response did not disclose a company email address, even though he had sent emails from that address as recently as the preceding month. FINRA found that when it took Thomas’ sworn testimony, he falsely testified, among other things, that his mother had created the company and that he did not have control of or signatory authority for any of the company’s bank accounts. (FINRA Case #2017056561101)
Current and Previous Registrations
04/10/2013 – 03/14/2018 NETWORK 1 FINANCIAL SECURITIES INC. (CRD#:13577) BROOKLYN, NY
03/16/2011 – 12/31/2012 NEWPORT COAST SECURITIES, INC. (CRD#:16944) BROOKLYN, NY
FINRA expelled the firm on 06/25/2018
12/04/2009 – 02/15/2011 LEGEND SECURITIES, INC. (CRD#:44952) NEW YORK, NY
FINRA expelled the firm on 04/17/2017
06/30/2006 – 12/23/2009 EMERALD INVESTMENTS, INC. (CRD#:139511) NEW YORK, NY
04/19/2006 – 07/12/2006 SUCCESS TRADE SECURITIES, INC. (CRD#:46027) WASHINGTON, DC
FINRA expelled the firm on 10/09/2015
08/29/2005 – 04/03/2006 LEMPERT BROTHERS INTERNATIONAL USA, INC. (CRD#:128241) NEW YORK, NY
06/23/2004 – 08/26/2005 AURA FINANCIAL SERVICES, INC. (CRD#:42822) BIRMINGHAM, AL
05/09/2003 – 06/24/2004 FIRST MONTAUK SECURITIES CORP. (CRD#:13755) RED BANK, NJ
01/31/2001 – 06/16/2004 WESTOR ONLINE, INC. (CRD#:103823) HERKIMER, NY
FINRA expelled the firm on 06/19/2013
09/04/2001 – 05/01/2003 U.S. SECURITIES & FUTURES CORP. (CRD#:36045) NEW YORK, NY
05/04/1999 – 01/31/2001 SEABOARD SECURITIES, INC. (CRD#:755) FLORHAM PARK, NJ
FINRA expelled the firm on 02/11/2011
08/05/1998 – 12/15/1998 PACIFIC CONTINENTAL SECURITIES CORPORATION (CRD#:2398) BEVERLY HILLS, CA
12/23/1997 – 08/13/1998 E. C. CAPITAL, LTD. (CRD#:37447) MINEOLA, NY
06/16/1997 – 12/19/1997 LA JOLLA CAPITAL CORPORATION (CRD#:24341) SAN DIEGO, CA
04/28/1997 – 05/20/1997 REDSTONE SECURITIES, INC. (CRD#:19628) DALLAS, TX
FINRA expelled the firm on 11/10/2003
04/07/1997 – 04/30/1997 BISHOP, ALLEN, INC. (CRD#:2060) NEW YORK, NY
If you suffered losses and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
Due Diligence Requirement
FINRA requires broker’s to conduct due diligence on investments and to conduct a suitability analysis when recommending securities to a customer that takes into account the customer’s knowledge and experience. FINRA Rule 2111(a) states that “a member or an associated person must have a reasonable basis to believe that a recommended transaction or investment strategy involving a security or securities is suitable for the customer, based on the information obtained through the reasonable diligence of the member or associated person to ascertain the customer’s investment profile. A customer’s investment profile includes, but is not limited to, the customer’s age, other investments, financial situation and needs, tax status, investment objectives, investment experience, investment time horizon, liquidity needs, risk tolerance, and any other information the customer may disclose to the member or associated person in connection with such recommendation.”
Rule 2111 is composed of three main obligations: reasonable-basis suitability, customer-specific suitability, and quantitative suitability. Brokers and the brokerage firms they work for that fail to conduct adequate due diligence on investments they recommend or that make unsuitable recommendations can be held responsible for the customer’s losses in a FINRA arbitration claim.
If you suffered losses and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
Request a Free Consultation with a Securities Attorney
If you suffered losses investing with Raymond Thomas and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
This information is all publicly available and is being provided to you by Galvin Legal, PLLC.
Galvin Legal, PLLC is a national securities arbitration, securities mediation, securities litigation, securities fraud, securities regulation and compliance, and investor protection law practice. For more information on Galvin Legal, PLLC and its representation of investors, please visit www.galvinlegal.com or call 1-800-405-5117.
