The Financial Industry Regulatory Authority’s (FINRA) Department of Enforcement filed a complaint against former financial advisor, Robert Russel Tweed (Tweed). The underlying basis of the investigation involved allegations Tweed engaged in fraudulent activity in connection with the sale of interests in a hedge fund named Athenian Fund LP. An extended hearing panel decision found Tweed was liable. For this misconduct, Tweed was barred from associating with any FINRA member firm and fined $50,000.
Tweed (FINRA CRD No. 2339324) entered the financial industry in 1993. From 2007 to 2010, and from April 2011 to August 2011, Tweed worked for Capwest Securities, Inc., which is now defunct. Most recently from August 2011 to November 2015, Tweed worked for Concorde Investment Services, LLC. Tweed’s FINRA BrokerCheck report discloses 14 negative disclosures, including numerous customer disputes.
FINRA’s Department of Enforcement initiated an investigation into Tweed’s alleged misconduct. Ultimately, FINRA found Tweed negligently made false and misleading statements to customers to induce them to invest in his hedge fund. FINRA found that between November 2009 and March 2010, Tweed obtained over $1.6 million from 23 retail customers through a false and misleading private placement memorandum (“PPM”) that he used to offer and sell interests in the Athenian Fund LP. Specifically, FINRA found Tweed misled the investors about the fees and costs they would have to pay and the persons and entities who would control the fund and trading.
Based upon the foregoing misconduct, FINRA found Tweed violated Sections 17(a)(2) and (a)(3) of the Securities Act of 1933, which constitutes a violation of FINRA Rule 2010. For example, “[i]t is well established that conversion violates the ‘high standards of commercial honor and just and equitable principles of trade’ required by FINRA Rule 2010.’” Here, Tweed’s false and misleading statements to customers were not just and equitable.
Lufrano Law, LLC is a national investment litigation firm and has experience representing investors who have investment disputes with brokers and broker-dealers. Please contact us at (800) 627-2179 for more information if you have been the victim of investment negligence or fraud.