Glen Armand Barred by SEC

Glen Armand (CRD #: 2846179), a broker formerly registered with WRP Investments, has been barred by the SEC, according to his BrokerCheck record, accessed on March 29, 2023. Read on if you want to know more about his alleged conduct as a broker.

Bar by SEC

On January 17, 2023, the Securities and Exchange Commission undertook cease-and-desist proceedings against Glen Armand, Robert Moreschi, and National Trust and Fiduciary Services Company (NTFS). The SEC alleged that NTFS engaged in unregistered broker-dealer activity and that the firm and Glen Armand, as its founder and CEO, made material misrepresentations to clients.

The SEC alleged that NTFS was a trust company offering, among other products and services, an online platform for the creation of irrevocable trusts. NTFS allegedly wholly owned Eastern Point Securities (EPS), a holding company and formerly-registered broker-dealer.

From at least January 2015 through December 2018, NTFS allegedly made it appear that Eastern Point Securities (EPS) was accepting and executing the omnibus trading activity of NTFS’s trust assets in order to conceal the firm’s unregistered brokerage activities.

Rather, NTFS allegedly bypassed EPS by using the firm’s own personnel and systems to place mutual fund orders with EPS’s clearing firm directly. To accomplish this, Robert Moreschi (allegedly EPS’s only employee) allegedly controlled the timing and payments made by EPS to NTFS.

As the nominal broker of record, EPS allegedly received approximately $953,643 of transaction-based compensation in the form of 12b-1 fees, approximately $764,933 of which were routed to NTFS after deducting EPS’s operating expenses and satisfying its net capital requirements.

Further, NTFS allegedly made material misrepresentations to investors by claiming that one trust product had no annual fees, that the SEC and FINRA regulated the firm’s securities operations, and that other governmental agencies regulated the firm’s business operations. Glen Armand allegedly drafted, reviewed, and circulated these misrepresentations to investors.

Instead, the SEC alleged that the trust assets of that product did incur 12b-1 fees and that no agencies or organizations were providing regulation for any of NTFS’s securities or business operations. 

The SEC alleged that Glen Armand willfully violated Sections 17(a)(2) and (3) of the Securities Act of 1933, and willfully aided and abetted and caused NTFS’s violations of Section 15(a) of the Securities Exchange Act of 1934.

Securities Act of 1933

Sections 17(a)(2) and (3) of the Securities Act of 1933 prohibit the use of deceptive and fraudulent schemes in the securities business as well as false statements and omissions of material fact that mislead investors.

Securities Exchange Act of 1934

Section 15(a) of the Securities Exchange Act of 1934 prohibits unregistered brokers and dealers from engaging in or inducing the purchase or sale of securities.

Sanctions

Starting January 17, 2023, Glen Armand was barred from associating with the following:

• Brokers
• Dealers
• Investment advisers
• Municipal securities dealers
• Municipal advisors
• Transfer agents
• Nationally recognized statistical ratings organizations (NRSRO)

He was also indefinitely barred from participating in offerings of penny stocks starting on the same date. He has the right to reapply for registration with the SEC and participation in penny stock offerings in 2028.

Additionally, Glen Armand was ordered to cease and desist from violations of Sections 17(a)(2) and (3) of the Securities Act of 1933 and Section 15(a) of the Securities Exchange Act of 1934, and fined $75,000.

Background Information

Glen Armand has passed the following exams:

• Series 63 – Uniform Securities Agent State Law Examination
• Series 6 – Investment Company Products/Variable Contracts Representative Examination

He has also worked for the following firms:

• WRP Investments (CRD#:7365)
• LaSalle St. Securities (CRD#:7191)
• Makefield Securities Corporation (CRD#:15271)

Kurta Law Can Help

If you worked with Glen Armand 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.