FINRA’s Department of Enforcement investigated DeBoer’s misconduct and alleged he engaged in an outside business activity and recommended unsuitable investments to scores of investors. Specifically, in June 2010, DeBoer recommended that two customers collectively invest $200,000 in securities offered by a software development company. The investors suffered a complete loss on their investments, respectively. According to FINRA, the securities were not offered through Dalton Strategic, and DeBoer did not disclose his participation in the transactions to the firm.
In addition, from November 2010 through December 2012, DeBoer marketed to his customers and other potential investors separately-managed futures trading accounts that were not offered by Dalton Strategic. In total, 28 investors collectively invested approximately $1.8 million, and subsequently lost a substantial amount of the money they invested. Nonetheless, DeBoer pocketed $70,000 in referral payments from the entity that offered the separately-managed futures trading accounts.
Based upon the foregoing misconduct, FINRA alleged DeBoer violated FINRA Rules 3270 and 2010, as well as NASD Conduct Rules, 2310, IM-2310-2, 3030 and 2110. FINRA Rule 3270 states in relevant part:
No registered person may be an employee, independent contractor, sole proprietor, officer, director or partner of another person, or be compensated, or have the reasonable expectation of compensation, from any other person as a result of any business activity outside the scope of the relationship with his or her member firm, unless he or she has provided prior written notice to the member, in such form as specified by the member.
Here, DeBoer recommended investments in a software company and separately-managed futures trading account to investors outside the scope of the relationship with Dalton Securities. As a result, DeBoer was permanently barred from the financial industry.
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 suffered investment damages investing with DeBoer while he was employed by Dalton Securities, 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 or complete our free case evaluator.