Douglas Maurer is Subject of FINRA Suspension
Douglas Maurer (CRD #: 3007121), a broker formerly registered with Ascendant Alternative Strategies, has been suspended by FINRA, according to his BrokerCheck record, accessed on December 16, 2021.
FINRA Allegations
According to an Acceptance, Waiver, and Consent agreement dated November 24, 2021, Douglas Maurer consented to the findings that from July 2019 and October 2019, while registered with Ascendant Alternative Strategies, he allegedly engaged in 12 unapproved private securities transactions totaling $1,100,000 — violating FINRA Rules 3280 and 2010.
According to the findings, Douglas Maurer allegedly solicited investors to purchase securities issued by “Company A,” which provided college and SAT preparation services. Douglas Maurer was a 25% owner and board member of “Company A.” Douglas Maurer raised a total of $1,100,000 through 12 securities transactions in which he solicited and sold membership units, which were the equity interests of “Company A”. Four of those 12 investors were customers of his member’s firm— Ascendant Alternative Strategies.
Ascendant Alternative Strategies’ written supervisory procedures prohibit representatives from engaging in private securities transactions, whether or not there was compensation paid for effecting the transaction. The firm also required all of its representatives to “conduct their selling activities through Ascendant.”
Although Douglas Maurer disclosed his ownership interest in “Company A” and his role as a board member to the firm in an onboarding questionnaire, he identified Company A as a non-investment-related outside business activity.
According to the findings, Douglas Maurer did not provide written notice to Ascendant that he intended to solicit and sell investments in “Company A,” nor did Ascendant ever approve Douglas Maurer’s participation in the transactions.
FINRA Rule 3280 states that before participating in any private securities transaction, a registered broker should provide written notice to his/her member firm describing in detail the proposed transaction and proposed role. The broker should also state whether he/she has received or may receive selling compensation in connection with the transaction.
A violation of FINRA Rule 3280 is also a violation of FINRA Rule 2010, which requires associated persons to observe high standards of commercial honor and just and equitable principles of trade in the conduct of their business.
Sanctions
As part of the terms of the AWC, Douglas Maurer consented to
- A two-year suspension from associating with any FINRA member in any capacity, ending December 5, 2023
- A $10,000 fine
You can read the complete AWC here.
Prior Disclosures
Unsuitability Dispute
According to allegations filed on September 18, 2019, Douglas Maurer sold unsuitable, non-registered securities. The damage amount requested was $12,319,652; however, the case was settled for $5,795,000.
A broker who recommends a security or investment is subject to FINRA rules and regulations.
- FINRA Rule 2111 requires registered brokers to have a “reasonable basis” for recommending a transaction or investment strategy that suits their client’s needs.
- FINRA Rule 2020 prohibits brokerage firms and stockbrokers from making material misrepresentations or inducing people into buying investments with false statements about their potential benefits.
- Douglas Maurer’s alleged unethical conduct also violates FINRA Rule 2010, which states that brokers must uphold high standards of commercial honor.
Investors who rely on their brokers for recommendations may be able to recover their losses through FINRA arbitration.
Background Information
Douglas Maurer has passed the following exams:
- Series 66 – Uniform Combined State Law Examination
- Series 63 – Uniform Securities Agent State Law Examination
- SIE – Securities Industry Essentials Examination
- Series 31 – Futures Managed Funds Examination
- Series 7 – General Securities Representative Examination
- Series 55 – Limited Representative-Equity Trader Exam
- Series 24 – General Securities Principal Examination
Douglas Maurer has also worked with the following firms:
- Stephen A. Kohn & Associates (CRD#:41067)
- RP Capital (CRD#:134768)
- TD Ameritrade (CRD#:7870)
- Morgan Stanley DW (CRD#:7556)
- Automated Trading Desk Brokerage Services (CRD#:36000)
- Chicago Securities Group (CRD#:114026)
- Burke Christensen & Lewis Securities (CRD#:6580)
- Madison Securities (CRD#:32176)
- E. F. Hutton & Company (CRD#:235)
Kurta Law Can Help
If you suffered losses after working with Douglas Maurer, don’t hesitate to contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation.
For nearly 20 years, Kurta Law has advocated for investors 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. Please reach out with any questions about how to recover investment losses.