Donald Smith Suspended by FINRA
Donald Smith (CRD #: 1134141), a broker formerly registered with Provident Private Capital Partners, has been suspended by FINRA, according to his BrokerCheck record, accessed on April 17, 2023. If you want to know more about his alleged conduct as a broker, read on.
FINRA Suspension
On March 27, 2023, Donald Smith received a Letter of Suspension from FINRA alleging that he failed to comply with an arbitration award or settlement agreement or failed to adequately respond to a request for information about his compliance.
FINRA indefinitely suspended Donald Smith starting on the same date. His suspension will continue until the required payment is made or discharged.
Arbitration Award
On January 19, 2023, Donald Smith was named in an arbitration agreement alleging, among other things, fraud, negligence and lack of suitability, and violations of the following regulations:
- The Pennsylvania Unfair Trade Practices and Consumer Protection Law
- The Pennsylvania Securities Act of 1972
- FINRA Rules 2010 and 2020
The arbitration award declared Donald Smith jointly and severally liable for $31,666 in compensatory damages and $62,000 in attorneys’ fees. You can read a copy of the arbitration award here.
FINRA Rule 9554
FINRA Rule 9554 penalizes brokers for failing to comply with arbitration awards or settlements by suspending or canceling their registration. Brokers can request a hearing within 21 days, after which their suspension or cancellation becomes final.
FINRA Rule 2111
FINRA Rule 2111 requires brokers to take into account investors’ financial goals when recommending investments. Brokers must consult the information contained in the investor’s profile, such as their age, tax status, and other investments.
Investors who rely on brokers for recommendations may be able to recover their losses by pursuing FINRA arbitration.
FINRA Rule 2010
FINRA Rule 2010 holds brokers to high standards of commercial honor and just and equitable principles of trade.
FINRA Rule 2020
FINRA Rule 2020 forbids the use of manipulative, deceptive, or otherwise fraudulent means of influencing the purchase and sale of securities. The misrepresentation or omission of material facts violates this rule.
What is Broker Negligence?
Brokers may act in many negligent ways, ranging from misrepresenting material facts to engaging in excessive trading. Investors who have lost money through broker negligence may be able to recover their funds by pursuing FINRA arbitration.
What are Blue Sky Laws?
Blue sky laws like the Pennsylvania Securities Act of 1972 are state-level regulations that offer investors an extra layer of protection against fraud. They may also describe which types of investments must register with the state securities board.
Background Information
Donald Smith has passed the following exams:
- Series 65 – Uniform Investment Adviser Law Examination
- Series 63 – Uniform Securities Agent State Law Examination
- Series 7TO – General Securities Representative Examination
- Series 99TO – Operations Professional Examination
- SIE – Securities Industry Essentials Examination
- Series 7 – General Securities Representative Examination
- Series 3 – National Commodity Futures Examination
- Series 14 – Compliance Officer Examination
- Series 24 – General Securities Principal Examination
- Series 28 – Introducing Broker/Dealer Financial Operations Principal Examination
- Series 51 – Municipal Fund Securities Principal Examination
- Series 27 – Financial and Operations Principal Examination
In the past, he has worked for the following firms:
- Provident Private Capital Partners (CRD#:44513)
- Vestax Securities Corporation (CRD#:10332)
- Linsco/Private Ledger Corporation (CRD#:6413)
- E. F. Hutton & Company (CRD#:235)
Kurta Law Can Help
If you worked with Donald Smith and you have concerns about your investments, contact a New York investment fraud lawyer today for a free case evaluation. Call (877) 600-0098 or email info@kurtalawfirm.com.
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.
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