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Craig Norton Fired from Wilson-Davis & Company and Barred by FINRA

Apr 11, 2022 Misrepresentation

Craig Norton (CRD #: 349405), a former broker, has been fired from Wilson-Davis & Company and barred from acting as a broker, according to his BrokerCheck record, accessed on April 6, 2022. Read on if you want to know more about Craig Norton’s conduct as a broker.

Discharge from Wilson-Davis & Company

Craig Norton was fired from Wilson-Davis & Company on February 4, 2022, following allegations he violated FINRA Rules 2020 and 2010, as well as Section 10(b) of the Securities Exchange Act and Rule 10b-5 within that section.

FINRA Action

On July 19, 2019, FINRA filed a complaint which alleged Craig Norton and Wilson-Davis & Company violated FINRA Rules 2020 and 2010, as well as Section 10(b) and Rule 10b-5 of the Securities Exchange Act by intentionally manipulating the stock market between February and June 2015.

According to FINRA filings, Craig Norton purchased 250 shares of stock in NuGene International, Inc. (NUGN) at $5 per share into Wilson-Davis’ account in February 2015. FINRA’s filings state NUGN had previously never traded at higher than $2.25 per share.

Millions of shares in NUGN were restricted from resale by the terms of a “Lock-Up/Leak-Out” agreement between customers and NuGene International. Lock Up contracts prevent company insiders from selling their shares for a set period of time. Craig Norton’s stock purchase allegedly artificially manipulated the closing price of NUGN to be $5 per share, triggering an escape clause in this agreement and allowing Craig Norton’s clients to freely sell their shares. Craig Norton is also alleged to have coordinated this trading.

FINRA filings allege that these actions created the appearance of active trading of NUGN and allowed Craig Norton’s clients to sell their NUGN stock at inflated prices, generating approximately $8.5 million in net sales and more than $400,000 in commissions for Craig Norton and Wilson-Davis & Company.

Sanctions

Craig Norton faced the following sanctions imposed by FINRA:

  • Barred from practicing as a broker with any FINRA member firm in any capacity
  • $240,360 in fines plus interest
  • $13,537.20 in additional penalties

You can access copies of FINRA’s filings here.

FINRA Rule 2010

FINRA Rule 2010 requires brokers to maintain high standards of commercial honor. Violations of other FINRA regulations may be automatic violations of Rule 2010.

FINRA Rule 2020

FINRA Rule 2020 prohibits the use of manipulation, deception, or other fraudulent means to influence the purchase or sale of securities.

Background Information

Craig Norton has passed the following exams:

  • Series 63 - Uniform Securities Agent State Law Examination
  • SIE - Securities Industry Essentials Examination
  • Series 55 - Limited Representative-Equity Trader Exam
  • Series 7 - General Securities Representative Examination
  • Series 1 - Registered Representative Examination
  • Series 24 - General Securities Principal Examination
  • Series 40 - Registered Principal Examination

In the past, he worked for the following firms:

  • Wilson-Davis & Company (CRD#:3777)
  • Schneider Securities (CRD#:16434)
  • Cohig & Associates (CRD#:16184)
  • R A F Financial (CRD#:1398)
  • R.B. Marich (CRD#:13227)
  • Marshall Davis (CRD#:16278)
  • Nielson and Clark (CRD#:13508)
  • Richey, Frankel & Company (CRD#:8548)
  • Prestige Investors (CRD#:10300)
  • N. Donald & Company (CRD#:7985)
  • American Western Securities (CRD#:7619)
  • American Western Securities (CRD#:6304)
  • Institutional Securities of Colorado (CRD#:5776)
  • Mountain Pacific Investment (CRD#:4296)

Kurta Law Can Help

If you worked with Craig Norton and you have concerns about your investments, please contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation.

For over 20 years, Kurta Law has advocated on behalf of investors who want to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm and exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf.