FINRA Suspends Former CEO of CFG Capital Markets

Posted on December 17th, 2020 at 4:01 PM
FINRA Suspends Former CEO of CFG Capital Markets

From the Desk of Jim Eccleston at Eccleston Law LLC:

Former CFG Capital Markets (“CFGCM”) CEO and Executive Managing Director, Kevin Rast, has agreed to pay a $7,500 fine and serve a four-month suspension from association with any FINRA member firm in any capacity. According to FINRA Enforcement, Rast submitted altered and misleading documents to FINRA and he also failed to ensure that CFGCM made adequate disclosures regarding potential conflicts of interest.

According to a Letter of Acceptance, Waiver and Consent (“AWC”) signed by Rast in November 2020, FINRA sent Rast two requests for documents in 2016.  In response to those requests, Rast submitted documents to FINRA in which he had altered the date on the documents, FINRA alleged. According to FINRA, the altered documents “gave the false appearance of contemporaneous supervisory review of the firm’s report cards when [Rast] had not conducted such a review[.]”

Additionally, FINRA found that Rast failed to make proper disclosures of material conflicts of interest in connection with two municipal bond offerings in the fourth quarter of 2015. According to FINRA, CFGCM failed to disclose its relationship with the company that acted as “asset manager” for those bond offerings.

FINRA found that Rast’s conduct constituted violations of Municipal Securities Rulemaking Board Rule G-17, which requires individuals to deal fairly with all persons and not engage in deceptive, dishonest or unfair practices. By signing the AWC, Rast accepted and consented to the entry of FINRA’s findings without admitting or denying those findings.

Tags: eccleston, eccleston law, finra, suspension, ceo suspension, cfg capital markets

Return to Archive

TESTIMONIALS

Previous
Next

This was the best of all possible outcomes and I cannot thank you and the team enough.

Michael S.

LATEST NEWS AND ARTICLES

October 2, 2024
SEC Charges Two South Florida Men for Defrauding Venezuelan-American Investors in $5 Million Scheme

The Securities and Exchange Commission (SEC) has filed a complaint against two South Florida men, Francisco Javier Malave Hernandez and Ricardo Javier Guerra Farias, for orchestrating a multi-million dollar investment fraud that targeted members of the Venezuelan-American community.

October 1, 2024
California Advisor Suspended and Fined for Churning Client Accounts

A veteran advisor in Santa Maria, California, Stewart "Paxton" Ginn, has been suspended for 18 months and fined $50,000 by FINRA, according to AdvisorHub

September 30, 2024
Bank of America and Merrill Lynch Settle with FINRA for Supervisory Failures

Bank of America and its subsidiary, Merrill Lynch, have agreed to a $3 million fine and censure as part of a settlement with FINRA over long-term supervisory failures.