NEWARK, N.J. (Legal Newsline) - New Jersey Acting Attorney General John Hoffman announced a settlement on Wednesday with a California-based securities company that allegedly failed to supervise a financial broker it employed.
WestPark Capital allegedly permitted Harry Datys, a broker who previously had his registration with the New Jersey Bureau of Securities revoked, to conduct financial transactions for four New Jersey residents. Datys allegedly caused the New Jersey clients to change their addresses to a business address or post office box located in New York. He allegedly did this to continue doing business with them without being registered in New Jersey.
The address changes were in violation of WestPark Capital's operating policies.
"The deception conducted by this individual, and also the firm's failure to monitor it, will not be tolerated," Hoffman said. "We will not allow a financial broker entrusted with an investor's nest egg to operate in defiance of the bureau's legally binding orders."
Under the terms of a settlement, WestPark Capital will pay a $50,000 civil penalty with $20,000 of the penalty suspended. WestPark Capital cooperated with the bureau on this matter.
In a separate settlement, Datys was assessed a $15,000 civil penalty. His registration remains revoked.