Source: US State of Missouri
For immediate release: November 17, 2020
Contact: Nick Omland, Communications Specialist
Colorado, Kansas Companies Fail to Disclose Disciplinary History to Securities Division
Jefferson City, Mo. — Secretary of State Jay Ashcroft’s Securities Division issued consent orders against two out of state companies after they each failed to disclose disciplinary actions issued against them by the Financial Industry Regulatory Authority Inc. (FINRA).
Kansas-based V Wealth Advisors LLC consented to failing to promptly notify the Securities Division that FINRA issued an Acceptance, Waiver and Consent (AWC) against its representative Robert Patton Stansberry.
Separately, Colorado-based DMK Advisor Group Inc. also failed to notify the division that FINRA issued an AWC against its agent Harold A. Schwartz.
As a precondition to registering in Missouri, each company was required to send the division documentation of any regulatory actions issued against them. Each company failed to do so and the division independently discovered the AWCs through routine reviews.
“Our Securities Division relies on firms to fulfill their obligations,” Ashcroft said. “Firms, agents and representatives are required to follow the law and there are consequences when they fail to do so. Any obligation or agreement that a firm enters into must be respected and not taken lightly.”
Each firm also consented to failing to maintain records of quarterly meetings and provide reports to the division.
The division ordered V Wealth Advisors LLC to pay $7,500 to the Secretary of State’s Investor Education and Protection Fund and suspended Stansberry’s registration for six months. Similarly, DMK Advisor Group Inc. was ordered to pay $10,000 to the fund, $5,000 of which is suspended pending compliance with the consent order.
Ashcroft urges all investors to know the risks. If you have any questions about an investment opportunity or wish to check the background and registration status of a financial adviser, please call the toll-free investor protection hotline at 800-721-7996, or go online to www.missouriprotectsinvestors.com to file a complaint.
Visit www.sos.mo.gov to learn more about the Office of the Missouri Secretary of State.