SEC, FINRA Bar William Gennity, Issue $2M Judgment For Client

William Christian Gennity (CRD#: 4913490, aka “Billy Christian Gennity”) is a former registered broker whose last known employer was First Standard Financial Company LLC (CRD#: 168340) of Staten Island, NY. Previous employers include Alexander Capital, L.P. (CRD#: 40077) and Legend Securities, Inc. (CRD#: 44952, expelled by FINRA on 4/17/2017), both of New York City, and National Securities Corporation (CRD#: 7569) of Iselin, NJ. No current employment information is available. He began in the industry in 2005.

Gennity is the subject of twelve disclosures dating back to 2014, eight of which are customer disputes, two closed with no actions. Four of these are regulatory/civil matters involving the Securities and Exchange Commission (SEC), the State of Montana, and the Financial Industry Regulatory Association (FINRA), barring him from any and all association with broker-dealers and acting as a broker or in any other capacity.

Gennity was first sanctioned by the State of Montana on 8/2/2016 after allegations of “excessive trading; unauthorized trading; unauthorized use of margin; discretionary trading without authorization; unsuitable recommendation; charging excessive fees; fraud.”  There were no sanctions issued with this order.

On 9/28/2017, the SEC received a judgment against Gennity which included an injunction and disgorgement of a total of $127,686.03, plus other monetary penalties. The SEC’s complaint alleged that Gennity, along with another individual at Alexander Capital, made unsuitable recommendations, made material omissions and misrepresentations, engaged in unauthorized trading and churning, and operated multiple customer accounts at a loss, totaling $683,038.

FINRA subsequently sent two letters requesting information to Gennity, followed by two letters of suspension on 12/27/2018, and 01/22/2019. On April 1/2019, FINRA barred him from association with any broker-dealer in any capacity after he failed to respond and failed to request a termination of his suspension.

On 3/4/2019, the SEC also barred Gennity from association with “association with a broker, dealer, investment adviser, municipal securities dealer, municipal advisor, transfer agent, or NRSRO.” Gennity responded that he was filing a Wells Submission in response to the allegations.

Gennity’s two current customer disputes have similar allegations of unsuitable/excess trading, churning, unauthorized trading with damages totaling $470,198. Dated 2/15/2019 and 12/3/2018, both are currently “pending.”

He was also named in a previous customer dispute, filed on 4/16/2018, which named First Standard Financial and another individual for breach of fiduciary duty, failure to supervise, unsuitability and unauthorized trading. The company and other individual were dropped from the action, and the client pursued his case against William Gennity. The FINRA arbitration panel ultimately awarded the client $2,404,376.97 in compensatory damages, 3% annual interest from April 16, 2018, to the date of the award (5/14/2019), as well as 5% annual interest from the service date of the award through the date it is paid in full.

Three previously settled cases were filed on 8/27/2014, 11/8/2016, and 7/10/2017, similarly alleging churning, unauthorized and breach of fiduciary duty. Requested damages in all three cases total $241, 246.98, and awards totaling $101,929.52. Gennity denies the allegations in all three cases.

Have You Lost Money Because Of William Gennity?

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