INVESTORS: Delta Securities broker Sean Donovan Casterline was suspended for 18 months by FINRA following allegations that he participated in private securities transactions without providing prior notice to his member firm.
Sean Donovan Casterline (CRD: 2212919) is registered as a broker and investment adviser with Delta Securities, where he’s been employed since 2018. Previously, Casterline was registered as a broker International Assets Advisory from February until October of 2017.
Casterline has three disclosures on his BrokerCheck report.
December 2021 Regulatory Judgment
- Status: Final
- Initiated By: FINRA
- Allegations: Without admitting or denying the findings, Casterline consented to the sanctions and to the entry of findings that he participated in private securities transactions without providing prior notice to his member firm. The findings stated that when Casterline became associated with the firm, he disclosed that he had an outside business activity (OBA) as the managing director of private equity for an entity that was raising capital to develop and operate senior living facilities (the Issuer). But after joining the firm, Casterline signed agreements with the firm that prohibited him from participating in any private securities transactions while the firm was undergoing an ownership change, through which Casterline would become the indirect owner of the firm, which was pending FINRA approval. While registered through the firm and prior to FINRA’s approval of the ownership change, Casterline participated in private securities transactions by soliciting investments in membership units issued by the Issuer. The membership units were securities. Casterline contacted prospective investors to notify them of the investment opportunity. Casterline then provided the private placement memorandum, subscription agreement, and other offering materials to interested investors; participated in discussions about the proposed investment with interested investors; and facilitated the sale of approximately $1.5 million of the membership units to investors. The Issuer paid Casterline $116,325 in selling compensation for his participation in the transactions. While Casterline had notified the firm that he was engaged in an OBA with the Issuer, he did not provide prior written notice to or obtain written approval from the firm to participate in the sales of the Issuer’s membership units. Casterline’s participation in the membership unit securities transactions was outside the regular course and scope of his employment with the firm.
- Resolution: Acceptance, Waiver & Consent (AWC)
- Sanctions: Civil and Administrative Penalty(ies)/Fine(s)
- Amount: $5,000.00
- Sanctions: Disgorgement
- Amount: $116,325.00
- Sanctions: Suspension
- Registration Capacities Affected: All Capacities
- Duration: 18 months
- Start Date: 1/18/2022
- End Date: 717/2023
December 2021 Investigation
- Initiated By: FINRA
- Description of Investigation: Pursuant to FINRA Rule 9216, Respondent Sean D. Casterline submitted a Letter of Acceptance, Waiver, and Consent (AWC) for the purpose of proposing a settlement of alleged rule violations.
August 2021 Customer Dispute
- Status: Pending
- Allegations: On or about August 5, 2021, the Company and Mr. Casterline received notice that [REDACTED] had commenced an arbitration proceeding to recover losses of approximately $175,000 to have incurred from the purchase of securities issued by Tuscan Gardens Growth and Income Fund, LLC. The Company and Mr. Casterline deny any wrongdoing and intend to vigorously defend this action and pursue a counterclaim against [REDACTED] for his misappropriation of and failure to account for funds that Mr. Casterline invested with him.
- Damage Amount Requested: $175,000.00
Contact Us Today
The Sonn Law Group is currently investigating allegations surrounding Sean Donovan Casterline. We represent investors in claims against negligent brokers and brokerage firms. If you or your loved one experienced investment losses, we are here to help. For a free consultation, please call us now at 866-827-3202 or complete our contact form.