Investor Allege JoePat Roop Engaged in Fraudulent Misrepresentation

JoePat Roop (CRD #: 2774470), a broker formerly registered with Dempsey Lord Smith, is the subject of two pending investor disputes, according to his BrokerCheck record, accessed on January 24, 2023. Investors may have also engaged his services through Belmont Capital Advisors. Keep reading to learn more about his alleged conduct as a broker.

Pending Disputes

On November 29, 2022, an investor filed a dispute alleging that JoePat Roop engaged in fraudulent misrepresentation, breached his contract, and acted negligently. The client seeks $220,000 in damages.

On August 5, 2021, an investor filed a complaint with the State of North Carolina alleging that JoePat Roop made unsuitable investment recommendations as well as other violations of the suitability rule.

FINRA Rule 2020

The misrepresentation of information related to investments violates FINRA Rule 2020, which bans the use of manipulative, deceptive, and otherwise fraudulent tactics to influence the purchase and sale of securities.

FINRA Rule 2111

FINRA Rule 2111 defines suitable investments as securities that fit an investor’s profile. These profiles describe an investor’s risk tolerance, tax status, and other characteristics.

Investors who rely on their broker for recommendations may be able to recoup their losses through FINRA arbitration.

What is broker negligence?

Brokers may act in many negligent ways. Common examples include misrepresentations or omissions of fact, unsuitable investment recommendations, and excessive or unauthorized trading.

Investors who believe their losses are the result of broker negligence may be able to recover their funds by seeking out FINRA arbitration.

Settled Disputes

On October 2, 2018, multiple investors filed a dispute alleging that JoePat Roop recommended unsuitable investments and sold securities without proper registration in Alabama. The clients alleged that this misconduct took place between January 2011 and July 2014. They sought $100,000 in damages and received a settlement of $90,000.

Four disputes filed from 2020-2022 alleged that JoePat Roop recommended unsuitable investments. 

Regulatory Action by State of North Carolina

On December 1, 2021, the North Carolina Securities Division alleged that JoePat Roop committed the following violations:

• Failed to maintain proper records
• Executed at least one trade without proper power of attorney
• Received commission for at least one trade for out-of-state clients
• Failed to update his Uniform Application for Securities Industry Registration or Transfer (U-4) to disclose an outside business activity that was non-operational

The North Carolina Securities Division alleged violations of Sections 18 NCAC 06A .1414(a and 18 NCAC 06A .1703 of the North Carolina Administrative Code and Chapter §78C-18(d) of the North Carolina General Statutes.

JoePat Roop settled through a consent order for $12,500.

North Carolina Administrative Code and General Statutes

Section 18 NCAC 06A .1414(a) of the North Carolina Administrative Code prohibits the use of dishonest and unethical business practices and holds brokers to high standards of commercial honor.

Section 18 NCAC 06A .1703 requires investment advisers to file a Form U-4 with the Investment Adviser Registration Depository and promptly amend it as necessary.

North Carolina General Statutes Chapter §78C-18(d) requires investment advisers to promptly correct any inaccurate or incomplete information filed with the state.

Background Information

JoePat Roop 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 6TO – Investment Company Products/Variable Contracts Representative Examination
• SIE – Securities Industry Essentials Examination
• Series 31 – Futures Managed Funds Examination
• Series 7 – General Securities Representative Examination
• Series 6 – Investment Company Products/Variable Contracts Representative Examination

He has also worked for the following firms:

• Dempsey Lord Smith (CRD#:141238)
• Kalos Capital (CRD#:44337)
• Wachovia Securities (CRD#:19616)
• Banc of America Investment Services (CRD#:16361)
• Legg Mason Wood Walker (CRD#:6555)
• MML Investors Services (CRD#:10409)
• Pruco Securities (CRD#:5685)

Kurta Law Can Help

If you worked with JoePat Roop 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.