Robert Kristal Investigation
March 2023-New York, New York
The FINRA records of Robert Eugene Kristal, a broker previously employed by H.C. Wainwright & Co. , disclose a regulatory matter resulting in a suspension and monetary fine.
The Financial Industry Regulatory Authority (FINRA) is the agency that licenses and regulates stockbrokers and brokerage firms. FINRA requires brokers and brokerage firms to report customer complaints and disputes as well as regulatory sanctions. In addition brokers are required to disclose certain financial matters such as personal bankruptcies, judgments and liens.
A FINRA investigation started in 9/2022, disclosed that Kristal failed to preserve business-related text messages. The findings stated that al least 24 firm employees, including Kristal, communicated about firm business through text messages using their personal cell phones. These text messages included communications between firm employees, as well as third parties, including issuers and firm clients. The firm did not obtain or preserve copies of these communications at the times they were exchanged. The firm’s failure to preserve business-related communications sent outside the firm’s approved communications platforms prevented FINRA from fully investigating matters in two FINRA investigations. The firm’s written policies prohibited business-related written communications between research and investment banking personnel and prohibited business related phone calls between research and investment banking personnel were not chaperoned by compliance staff. Nevertheless, Kristal and another firm employee breached the firm’s information barrier, often exchanging business related text messages with each other using their personal cellphones. These unsupervised communications created a risk that the firm’s interest in attracting and maintaining investment banking business inappropriately influence its research analysts.
Sanctions were a 30 day suspension and a $15,000 fine to be paid by Kristal individually.
Kristal was employed with H.C. Wainwright & Co. from 5/2016-10/2020. He is not currently registered with any FINRA broker dealer.
If you have losses in an account handled by Robert Eugene Kristal, call to learn how you may be entitled to collect damages through FINRA arbitration.
Rex Securities Law , with offices in Boca Raton, FL, and Austin, TX, provides representation to investors nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.
Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.
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