Publicly available records provided by the Financial Industry Regulatory Authority (FINRA) indicate that broker/advisor Brian Joseph Harte (CRD # 4780629) was recently suspended from the securities industry by FINRA’s Department of Enforcement. The sanction occurred as a result of an investigation into the use of unauthorized discretion in customer accounts. The Law Office of Kevin J. Deloatch, Esq. is interested in speaking to investors who have complaints regarding Mr. Harte.
Registration Background for Brian Joseph Harte
Mr. Harte first became registered in the securities industry in 2004 with Alexandria, VA based E1 Asset Management, Inc. (CRD # 46872). He has not been registered with any other FINRA member broker-dealer.
FINRA’s Allegations against Brian Joseph Harte
FINRA’s investigation led to Mr. Harte entering into a Letter of Acceptance, Waiver and Consent (AWC) with FINRA on May 4, 2020. According to the AWC, Mr. Harte consented to, without either admitting to or denying, the following findings by FINRA’s Department of Enforcement:
- “Between January 2017 and July 2018 (the “Relevant Period”), [Mr.] Harte exercised discretion without written authorization in six customer accounts”;
- “[Mr.] Harte effected approximately 50 discretionary trades in six accounts maintained by six customers”;
- “Although the customers knew that [Mr.] Harte was exercising discretion in their accounts, [Mr.] Harte did not have prior written authorization to do so from any of the customers”;
- “[Mr.] Harte never requested or obtained approval from E1 to exercise discretion in the accounts, which E1 would not have granted in any event because the Firm prohibited representatives from exercising discretion in customer accounts”; and
- “By virtue of the foregoing, [Mr. Harte] violated NASD Rule 2510(b) and FINRA Rule 2010.”
FINRA Sanctions Brian Joseph Harte
As a result of such violations and in addition to the above described findings and conclusions, FINRA’s May 4, 2020 AWC also indicates that Mr. Harte consented to the following sanction:
- A suspension from association with any FINRA member firm in any and all capacities for a period of 10 business days.
Brian Joseph Harte has a History of Complaints
In addition to the findings of FINRA’s Department of Enforcement, FINRA BrokerCheck for Mr. Harte reveals he has a history of customer complaints including but not necessarily limited to the following:
- On May 1, 2009 a customer initiated a written complaint alleging Mr. Harte engaged in the “unauthorized purchase of stock in 3 accounts”. The customer alleged damages in the amount of $106,798.06. The complaint was settled on May 12, 2009, in which the trades were canceled from the customer’s account, Mr. Harte being fined and the accounts reassigned to another representative.
- On December 4, 2009 a customer initiated a written complaint alleging Mr. Harte engaged in unauthorized trading. The customer alleged damages in the amount of $100,000.00. The complaint was eventually settled on March 23, 2011 in the amount of $20,500.00.
- On June 5, 2014 a customer initiated complaint was filed alleging Mr. Harte engaged in the unauthorized purchase of stock. The customer alleged damages in the amount of $11,178.09. The complaint was denied without action.
- On May 22, 2016 a customer initiated a written complaint against Mr. Harte alleging that he engaged in the unauthorized purchase of a security. The customer alleged damages in the amount of $19,204.00. The complaint was denied without action.
If you or someone you know has or had a brokerage account with Mr. Brian Joseph Harte and have concerns regarding losses in your investments or possible sales practice violations including fraud, you may be entitled to recover lost funds. The Law Office of Kevin J. Deloatch, Esq. has an extensive securities law practice and over 30 years of experience on Wall Street. Call today at (646) 792-2156 for a free consultation. The time to file your claim may be limited so you should call today to avoid delay.