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February 20, 2020 at 03:35 PM
The Financial Industry Regulatory Authority barred an ex-Independent Financial Group broker from association with any FINRA member in any capacity after he transferred $11,100 of his clients’ funds to his personal bank account and used the money for personal expenditures, according to FINRA.
Martin David Batstone submitted an offer of settlement to FINRA’s Department of Enforcement Feb. 13 in which he, without admitting or denying the regulator’s allegations, agreed to be barred, FINRA said. FINRA issued an order Tuesday accepting Batstone’s offer.
Batstone was registered with IFG as a general securities representative from January 2009 to April 2017, then left and joined Crown Capital Securities in 2017, according to FINRA’s BrokerCheck website. No reason was cited for his departure from IFG and the firm did not immediately respond to a request for comment Thursday.
Between November 2015 and August 2016, while associated with IFG, Batstone solicited two of the firm’s customers to invest a total of $75,000 in a small limited liability company purporting to provide brand management and product placement services for athletes and entertainers, according to the FINRA order accepting offer of settlement.
While soliciting those investments, Batstone told the customers their funds would be used by the firm for general operating expenses, including marketing and distribution of an energy drink, FINRA said. However, “contrary to these representations,” between November 2015 and January 2017, Batstone transferred $11,100 of the customers’ funds to his personal bank accounts and used the funds for his personal expenditures, the regulator said.
