FINRA suspends Richard Hunt Crockett (CRD #1209667, Huntington, New York)
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As reported in InvestmentNews, three Raymond James entities have agreed to pay over $15 million to resolve an investigation by the SEC. The settlement and SEC order focused on Raymond James’s actions in improperly charging certain clients advisory fees when the...read more
April 3, 2018 – An AWC was issued in which Crockett was fined $5,000 and suspended from association with any FINRA member in any principal capacity for two months. Without admitting or denying the findings, Crockett consented to the sanctions and to the entry of findings that he failed to reasonably supervise the private securities transactions of his member firm’s registered representatives. The findings stated that Crockett was responsible for reviewing and approving the outside business activities and private securities transactions of his firm’s registered representatives. Crockett approved certain of the firm’s brokers’ outside business activities with an investment holding company.
Certain of the firm’s brokers, through the investment holding company, offered and sold more than $8 million in promissory notes in the investment holding company and in a fund marketed by that company involving real-estate investments in Belize. The brokers that sold the promissory notes were compensated directly by the investment holding company. Crockett approved the brokers’ private securities transactions, but failed to reasonably supervise those transactions. In particular, Crockett did not perform due diligence on the investment holding company and in the marketed fund’s offerings. Instead, Crockett relied on a registered representative at his firm to perform due diligence on the offerings. The registered representative, however, was a principal of the investment holding company and was therefore not in a position to independently review the merits of the offerings.
If you or someone you know has lost money investing with Richard Hunt Crockett, call the experienced FINRA arbitration attorneys at Epperson & Greenidge at 877-445-9261 for a free consultation. You may be eligible to recoup your losses. Epperson & Greenidge accepts all cases on a contingency basis: we only get paid if and when you collect money. Time to file your claim may be limited, so we encourage you to avoid delay. Call 877-445-9261 now to speak to an attorney for free.