FINRA’s Department of Enforcement investigated Swenson and found he made misleading and inaccurate statements to numerous corporate bond dealers while participating in and obtaining allocations of bonds. In particular, Agincourt, through Swenson, served as agent for an unregistered proprietary trading firm that purchased and sold primarily fixed income securities, including investment-grade quality, new-issue corporate bonds and then sold these bonds on the secondary market. According to FINRA, the firm paid Agincourt approximately $786,439 for these transactions, of which approximately $600,000 went directly to Swenson.
From approximately July 2009 to December 2012, Swenson made misleading and inaccurate statements to corporate bond dealers while participating in and obtaining bond allocations for the aforementioned firm. For example, Swenson misrepresented that the firm was a large, Bermuda-based insurance company. Swenson also misrepresented that he insurance company was executing a “buy and hold” strategy when in fact the bonds were being purchased by the firm whose strategy was to sell the securities immediately and often within days. Finally, Swenson misrepresented to the corporate bond dealers that the firm was a qualified investment buyer, when in fact, the firm was not a qualified investment buyer.
As a result of the foregoing misconduct, FINRA alleged Swenson violated NASD Rule 3110(a) and FINRA Rules 2010 and 4511. For example, FINRA Rule 4511 states: “Members shall make and preserve books and records as required under the FINRA rules, the Exchange Act and the applicable Exchange Act rules.” Here, Swenson made misleading and inaccurate statements to corporate bond dealers, which caused Agincourt’s books and records to be inaccurate in violation of financial industry rules and regulations.
Lufrano Law, LLC is a national securities litigation firm and has experience representing investors who have investment disputes with brokers and broker-dealers. If you lost money investing with Swenson through Agincourt, you may be able to recover your losses through FINRA arbitration. Our firm only receives a fee if you recover money. Please contact one of our attorneys at (800) 627-2179 to schedule a free consultation.