Ex-Kestra Broker Barred for Failing to Provide Requested Information

Ex-Kestra Broker Barred for Failing to Provide Requested Information-minJohn William Spach (CRD#: 2731192) is a former registered securities broker. From 2014 to 2018, Mr. Spach was employed at Kestra Investment Services (CRD#: 42046) in Aliso Viejo, California. In June of 2018, he was permitted to resign from the brokerage firm while under internal investigation.

On February 21st, 2019, John Spach was barred from the securities industry after he knowingly failed to provide documents and information that was requested by investigators — this is a violation of FINRA Rule 8210.

Allegations: Violation of Firm Policies When Settling a Customer Complaint

According to BrokerCheck, former Kestra Investment Services broker John Spach settled a dispute over a defaulted promissory note for $450,000. Notably, this claim involved an outside investor that was not affiliated in any manner with Kestra.

Eventually, Kestra launched an internal review of his conduct. The purpose of this investigation was to determine if Mr. Spach may have violated firm policies in settling the outside investor complaint. While he was still under internal review, he was permitted to resign from the brokerage firm.

When FINRA launched its own investigation into this claim, Mr. Spach declined to cooperate with the investigation. Without admitting any wrongdoing, he consented to the agency’s proposed penalties: an indefinite bar from the securities industry.

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