- March 16, 2022
- Parkland Securities LLC
Keith Ashley (CRD#: 4096004) is a previously registered Broker.
He entered the securities industry in 2000 and previously worked for Parkland Securities, LLC; Sigma Financial Corporation; and Walnut Street Securities, Inc.
Current And Past Allegations Of Conduct Leading To Investment Loss
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), in December 2021, regulatory action initiated by FINRA against Keith Ashley is pending. The FINRA sanction states, “Ashley was named a respondent in a FINRA complaint alleging that he failed to provide information requested by FINRA in connection with an investigation that began with reviewing the circumstances of his termination from his member firm, including whether he engaged in undisclosed outside business activities or participated in private securities transactions. Subsequently, FINRA began investigating the allegations set forth in a federal indictment, including whether Ashley defrauded investors or misappropriated funds from investors, including customers of the firm. A federal grand jury indicted Ashley on six counts of wire fraud alleging, among other things, that he solicited money from his victims under the pretense that he was investing those funds in a Unit Investment Trust (UIT). The indictment further alleged that Ashley made false statements when soliciting these investments, including that there were guaranteed returns and that there was no risk to the initial principal investment. According to the indictment, instead of investing the funds in a UIT, Ashley allegedly spent the more than $1 million he solicited on personal expenses, such as spending at casinos, payments on personal credit cards, mortgage payments, and college tuition and student loan payments. The information FINRA sought from Ashley was material to its investigation of the circumstances surrounding his termination from the firm and to whether he had defrauded investors or misappropriated customer funds. Ashley’s failure to answer FINRA’s requests for information impeded and delayed FINRA’s investigation.”
For a copy of the FINRA sanction, click here.
In addition, Keith Ashley has been the subject of one customer complaint and an employment disclosure, including the following:
- October 2020 — “The firm has reason to believe that the representative engaged in undisclosed outside business activities and also failed to provide the firm with prior notice of private securities transactions involving his privately held company.“ Keith Ashley was discharged by Parkland Securities, LLC.
- May 2010 — “AUGUST 2008 CLIENT APPLIED FOR A LIFE INSURANCE POLICY. OCTOBER 2009 CLIENT REQUESTED THAT THE POLICY BE CANCELLED AND THE PREMIUMS RETURNED. CLIENT ALLEGES THAT THE REPRESENTATIVE FAILED TO FOLLOW HIS INSTRUCTIONS.” The customer dispute was denied.
- April 1991 — “1. 1 COUNT, 2. FELONY FORGERY, 3. NO-CONTEST, 4. N/A.” Felony criminal charges were dismissed.
For a copy of Keith Ashley’s FINRA BrokerCheck, click here.
We Help Investors Recover Investment Losses
The Financial Industry Regulatory Authority (FINRA) strictly prohibits financial advisors from “selling away” or selling securities and investments to clients that are not offered by the brokerage firm with which they are employed. For example, it is illegal and a violation of industry rules for a financial advisor to recommend or even suggest that a client invest in the financial advisor’s own business or a business operated by his or her friends or family. It is not necessary that the financial advisor earn any compensation for recommending an outside investment.
FINRA Rule 3280 provides: “No person associated with a member shall participate in any manner in a private securities transaction except in accordance with the requirements of this Rule. Prior to participating in any private securities transaction, an associated person shall provide written notice to the member with which he is associated describing in detail the proposed transaction and the person’s proposed role therein and stating whether he has received or may receive selling compensation in connection with the transaction; provided however that, in the case of a series of related transactions in which no selling compensation has been or will be received, an associated person may provide a single written notice.”
The purpose behind this prohibition is to ensure that a financial advisor only offers to sell securities that have been vetted by his or her employer brokerage firm through a rigorous due diligence process. Most brokerage firms have an approved list of investments, products, and research that can be provided or made available to clients. Any deviation by the financial advisor from the approved product list may constitute selling away.
The Wolper Law Firm represents investors nationwide in securities litigation and arbitration on a contingency fee basis. Matt Wolper, the Managing Principal of the Wolper Law Firm, is a trial lawyer who has handled hundreds of securities cases during his career involving a wide range of products, strategies and securities. Prior to representing investors, he was a partner with a national law firm, where he represented some of the largest banks and brokerage firms in the world in securities matters. We can be reached at (800) 931-8452 or by email at email@example.com.