Securities Arbitration Lawyer Blog
The Financial Industry Regulatory Authority (“FINRA”) has suspended stockbroker Frederick Rock from the securities industry for five months and ordered him to pay a $5,000 fine. FINRA sanctioned Mr. Rock because he solicited clients to purchase $409,200 worth of securities that were not approved by his firm, Pruco Securities LLC.
Mr. Rock was a financial advisor with Pruco Securities LLC (“Pruco Securities”) in Tampa, Florida, from July 2014 until August 2019.
Iorio Altamirano LLP is interested in speaking with past customers of Mr. Rock or Pruco Securities LLC. Contact securities arbitration law firm Iorio Altamirano LLP for a free and confidential evaluation of your investment or retirement account.
FINRA Letter of Acceptance, Waiver, and Consent No. 2019063574801
On April 23, 2021, Mr. Rock and FINRA entered into a Letter of Acceptance, Waiver, and Consent (“AWC”). Specifically, FINRA alleged:
- Between March and June 2019, Rock solicited private-placement investments in a start-up company developing waste-to-energy technology totaling $409,200 from 17 investors.
- Four of the investors were customers of Pruco Securities.
- Rock participated in these purchases by recommending the investments, helping the investors complete Stock Purchase Agreements (SPAs), and collecting their SPAs and investment checks to provide to the company.
- Rock did not receive any compensation for the sales.
- Rock did not provide Pruco Securities with prior written notice of these activities, which were outside the regular course of his employment with the firm.
- Therefore, Rock violated FINRA Rules 3280 and 2010.
When a financial advisor participates in a private securities transaction that is not approved by a firm, it is referred to as “selling away.” The prohibitions on selling away are designed to protect investors by ensuring that all brokers’ activities are reasonably supervised by firms that employ them. Further, securities that are sold away from a firm have not been vetted by the firm.
Financial Advisor Frederick Joseph Rock (CRD No. 2548242)
Mr. Rock, who is not currently registered as a broker with any brokerage firm, had 23 years of experience in the securities industry and has been associated with six broker-dealers:
- Pruco Securities, LLC in Tampa, Florida, from July 2014 – August 2019.
- Fifth Third Securities, Inc. in Tampa, Florida, from May 2006 – November 2013.
- Uvest Financial Services Group, Inc. in Charlotte, North Carolina, from June 2003 – May 2006.
- MML Investors Services, Inc. in Springfield, MA, from March 1996 – June 2003.
- R. Phelps & Co., Inc., from February 1996 – March 1996.
- Cantella & Co., Inc. in Malden, Massachusetts, from May 1995 – June 1995.
According to Mr. Rock’s public BrokerCheck report, he has been the subject of at least two customer complaints:
- Customer Dispute (2011): A customer filed a securities arbitration complaint that alleged $600,000 in damages. The customer alleged misappropriation of funds and unauthorized trading of mutual funds and an exchange-traded fund. The causes of action included negligence, gross negligence, negligent-specific FINRA/NASD conduct rules violations, breach of fiduciary duty, breach of contract, and common law fraud. The dispute was settled by Fifth Third Securities, Inc. for $115,000.
- Customer Dispute (2016): A customer complained that Mr. Rock did not disclose all facts regarding recommended annuities and those annuities were not suitable. The customer did not file a securities arbitration complaint and instead complained directly to the firm, Pruco Securities, LLC. Pruco Securities LLC declined to give any compensation to the customer and closed the matter.
Mr. Rock’s BrokerCheck report also discloses that he has been the subject of three tax liens totaling over $30,000.
Pruco Securities LLC: A Duty to Supervise
Financial institutions, like Pruco Securities LLC, must properly supervise financial advisors and customer accounts. Brokerage firms are required to establish and maintain a reasonably designed system to oversee account activity, such as private securities transactions, to ensure compliance with securities laws and industry regulations. When a brokerage firm fails to supervise its financial advisors or the investment account activity sufficiently, it may be liable for investment losses sustained by customers.
How to Recover Losses or Obtain a Free Consultation
Iorio Altamirano LLP is a securities arbitration law firm based in New York, NY. We pursue FINRA arbitration claims nationwide on behalf of investors to recover financial losses arising out of wrongful conduct by financial advisors and brokerage firms.
If you have lost money with broker Fred Rock or Pruco Securities LLC, contact New York securities arbitration lawyers August Iorio and Jorge Altamirano of Iorio Altamirano LLP at august@ia-law.com, jorge@ia-law.com or toll-free at (855) 430-4010 for a free and confidential evaluation of your account.
Iorio Altamirano LLP is a bilingual law firm, fluent in both English and Spanish.