The Financial Industry Regulatory Authority’s National Adjudicatory Council on Wednesday upheld a FINRA Extended Hearing Panel’s decision from a year ago that the owner of a San Marino, California, advisory firm had violated FINRA rules and misled investors and, therefore, warranted being barred from associating with any FINRA member in any capacity.
Robert R. Tweed had appealed a July 5, 2018 decision by the FINRA Extended Hearing Panel that found the broker, owner of Tweed Financial Services, negligently misrepresented and failed to disclose material facts concerning the sale of interests in Athenian Fund, a private investment fund he created and controlled, and that he took part in conduct that functioned as fraud or deceit on Athenian investors.
The panel found that, between November 2009 and March 2010, Tweed obtained more than $1.6 million from 23 retail customers via a “false and misleading private placement memorandum” that he used to offer and sell interests in the Athenian Fund, FINRA said. For that “misconduct, the majority of the Panel bars Tweed from associating with any FINRA member firm in any capacity and imposes a $50,000 fine,” FINRA said at the time.
Tweed, however, appealed the hearing panel’s findings that the disciplinary proceeding was timely and the sanctions it imposed, FINRA pointed out in the Dec. 11 decision of its NAC.
FINRA’s NAC concluded in its 22-page decision that Tweed violated Securities Act Sections 17(a)(2) and (3) and FINRA Rule 2010.
As a result, FINRA’s NAC said: “We bar Tweed in all capacities for this misconduct.” Tweed was also ordered to pay hearing costs of $5,196.