Lance Baraker Suspended by FINRA for Alleged Undisclosed Outside Business
Lance Baraker (CRD #: 4647994), a broker formerly registered with Velocity Clearing, was recently suspended by FINRA, according to his BrokerCheck record, accessed on September 30, 2022. If you want to know more about Lance Baraker’s conduct as a broker, read on.
FINRA Suspension
According to a Letter of Acceptance, Waiver & Consent (AWC) filed on July 27, 2022, Lance Baraker allegedly engaged in an outside business activity without providing notice to his firm, Rise Financial Services (also doing business as WPS Prime Services).
The AWC alleges that, in April 2019, Lance Baraker and four other individuals formed Company A in order to pool their funds for investing. Though Lance Baraker allegedly did not contribute any funds to Company A, he allegedly did serve as its director and treasurer, and signed its shareholder agreement as the managing member of Company B, a personal limited liability company.
In his role as director and treasurer, Lance Baraker allegedly facilitated the wire of $350,000 of Company A’s funds to an asset manager in April 2019. He allegedly also signed the Management and Deposit Agreement and escrow agreement with this asset manager on behalf of Company A. The asset manager eventually filed for bankruptcy. Lastly, the AWC alleges that Lance Baraker failed to provide advance notice to his firm with respect to his business activities with Company A and Company B.
The AWC concludes that these allegations constitute violations of FINRA Rules 3270 and 2010.
FINRA Rules 3270 and 2010
FINRA Rule 3270 requires brokers to inform their firm and receive approval for any business activities they engage in beyond their firm.
FINRA Rule 2010 holds brokers to high standards of commercial honor and just and equitable principles of trade.
Sanctions
Lance Baraker consented to the following sanctions:
- $5,000 fine
- 30-day suspension
His suspension began on August 1, 2022, and ended on August 30, 2022.
You can read a copy of the AWC here.
Other business activities
Lance Baraker’s detailed BrokerCheck report lists two outside business activities:
- Independent contractor working with Westfuller Advisors, where he evaluates alternative investments and recommends compatible fund managers.
- Working with Scalebuilder Allocation Platform, where he evaluates investments and recommends hedge fund managers.
Tax Liens
From 2015-2019, Lance Baraker was the subject of $44,609.83 in tax liens.
Background Information
Lance Baraker has passed the following exams:
- Series 63 – Uniform Securities Agent State Law Examination
- SIE – Securities Industry Essentials Examination
- Series 3 – National Commodity Futures Examination
- Series 7 – General Securities Representative Examination
- Series 30 – NFA Branch Manager Examination
He previously worked for the following firms:
- Velocity Clearing (CRD#:126588)
- WPS Prime Services (CRD#:146103)
- Celadon Financial Group (CRD#:36538)
- TradeStation Securities (CRD#:39473)
- Saratoga Capital Markets (CRD#:120888)
- Shoreline Trading Group (CRD#:41888)
Kurta Law Can Help
If you worked with Lance Baraker 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.
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