Broker Investigation: Charles Gonzalez Barred For Non-Compliance with FINRA Investigation

On January 9, Charles Gonzalez (CRD#: 4330269) settled allegations in a FINRA investigation. As a part of the disciplinary action, he signed a Letter of Acceptance, Waiver, and Consent (AWC). In the waiver, Gonzales’ did not confirm or deny the FINRA allegations, but did consent of their findings.

The investigation surrounded Gonzales’ alleged non-disclosed business activity while he was with Spartan Capital Securities. And, when the FINRA investigation began, he failed to comply with requests for information.

Gonzalez did not provide his firm with the required written notice of his intentions for outside business activity. Between June 2017 and January 2018, he went so far as to undertake steps to launch his own broker-dealer firm. He did four things set up his new business:

• Retained and paid for consultant services
• Purchased office equipment
• Rented office space
• Solicited and raised capital funds from a Spartan customer

Gonzalez also violated FINRA industry rule 8210. The rule requires brokers to cooperate with all requests made by the regulator. He did not comply with requests and also falsified expense receipts, sent the false documents to investigators and gave false testimony about the receipts.

In January 2018, amid the FINRA allegations, Spartan terminated Gonzales’s broker registration. They claimed he was not following firm policy and procedures. In the AWC, Gonzales agreed to the decision that barred him from acting as a broker or associating with a broker-dealer firm.

Speak with a Securities Fraud Lawyer Today

All brokers owe a duty to disclose all outside business activities. Unauthorized and non-disclosed business activity can constituent fraud. If you have lost money due to non-disclosed business activity by a broker, you have the right to compensation. Contact the Sonn Law Group’s dedicated investment fraud lawyers for a free case review today.

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