FINRA Requires Brokerage Firms To Have Proper Supervisory Systems

Robert Foley (Robert Patrick Foley CRD# 6060234) is a broker and investment advisor whose last known employer was Wynston Hill Capital, LLC (CRD#:103811) of Red Bank, NJ. Previous employers include Maxim Group LLC (CRD#:120708) of New York, NY, Pruco Securities, LLC. (CRD#:5685) of Paramus, NJ, and Metlife Securities Inc. (CRD#:14251) of Elmsford, NY. He has been in the industry since 2012.

Robert Foley has two disclosures in his CRD, the first of which involves failing to supervise two representatives at Wynston Hill who were involved in “churn and burn,” or excessively trading in customers accounts, and a third firm representative who falsified the firm’s records. This activity occurred during Foley’s tenure, from January through June of 2019.

Foley was a designated principal responsible for supervising the registered representatives assigned to Wynston Hill’s New York City branch office. His job included the review of orders to look for frequent or excessive trading, margin trades, unsuitable recommendations, higher-than-normal commissions and other “red flags.” Foley discussed these issues with the firm’s chief compliance officer but took no other action. Customers of two of the representatives would need growth in excess of 100% per year in their accounts to cover the commissions and other costs that were involved with their accounts.

Two of the representatives under Foley’s organization were unable to get registration in some of their customer’s home states, despite making investment recommendations to them. These clients were then registered to a third representative who had no experience, was just 20 years old, but was able to acquire registration in the required states. Foley failed to investigate this situation, which would include personally contacting the clients in question.

Foley signed an Acceptance, Waiver & Consent (AWC) letter on 11/17/2021, which was signed and went into effect by FINRA counsel on 12/1/2021. The sanctions include:

A fine of $5,000, payable immediately or upon re-registration with a FINRA member firm
A suspension of four calendar months, beginning 12/6/2021 and ending 4/5/2022
Required continuing education totaling 40 hours by a FINRA-sanctioned provider within 60 days of the date of the AWC
Provide notification of registration ten days in advance and within 30 days of completion of the training to the FINRA’s principal counsel

Robert Foley is only suspended as a broker and is still registered as an investment advisor. However, he is not affiliated with any FINRA member firm.

The second disclosure involves a dismissed criminal charge of aggravated assault, dated 3/1/2016. No additional information is available.

Churning Or Excessive Trading

Stockbrokers are entitled to charge a reasonable fee for their services. However, churning or trading to generate a commission without adding value to a customers account is improper. Although most brokerage firms have systems in place to detect voluminous trading, excessive fees or high commissions, some firms continue to encourage their financial advisors to trade frequently to generate more fees. Our attorneys represent investors who have been the victim of churning, excessive trading, unsuitable investments and breach of fiduciary duty. Using a team of lawyers and forensic accountants, we are able to demonstrate that the trading is improper or done simply to profit the brokerage firm.

Did Your Stockbroker Churn Your Account?

Silver Law Group represents investors in securities and investment fraud cases. Our lawyers are admitted to practice in New York and Florida and represent investors nationwide to help recover investment losses due to stockbroker misconduct. If you have any questions about how your account has been handled, call to speak with an experienced securities attorney. Most cases are handled on a contingent fee basis, meaning that you won’t owe us until we recover your money for you. Contact us today at (800) 975-4345 and let us know how we can help.