Massachusetts securities regulator William Galvin on Wednesday charged a New York broker-dealer and two of its agents with “churning” the market account of an elderly business owner in the state and concealing the amount he was being charged for the excessive trading.
The Massachusetts Securities Division’s administrative complaint seeks to revoke the existing registrations and to permanently bar Brookville Capital Partners LLC of Uniondale, N.Y.; Ali Habib Mayar of Melville, N.Y.; and Christopher F. Veale of New York City from the securities business in Massachusetts.
They would also be required to compensate the 81-year-old investor for his $1.6 million in losses.
Brookville and Veale have prior disciplinary actions against them, as does Brookville’s CEO, a related party in the complaint.
Veale has been registered and employed with 18 different securities firms since 1994, starting with Stratton Oakmont Inc., which is the firm where the infamous broker Jordan Belfort’s illegal activities are played out in the movie “The Wolf of Wall Street.”
Brookville and Mayar are registered in Massachusetts; Veale is registered in Rhode Island. His registration in Rhode Island was subject to heightened supervision. Under that agreement, Brookville was supposed to exercise special supervision.
Since leaving Brookville on June 26, 2012, Veale has been a registered repr at Blackwall Capital Markets Inc.; Meyers Associated L.P.; John Thomas Financial; and Legend Securities Inc.
“Rogue brokers have long been a plague on the investing public,” Secretary Galvin said in a statement. “My office, along with other state and federal regulators, is determined to move aggressively against them as well as the firms that hire them.”
In 2004, Veale was fined $10,000, suspended and ordered to pay $35,696.48 in restitution for engaging in unsuitable and excessive trading in the accounts of three customers of S.W. Bach & Co.