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The Secretary of State’s Securities Division recently suspended Mississippi-registered broker-dealer Brant Ray of Southaven from operation in the State for at least six months.
Under the administrative order, Ray was also fined $5,000: $2,500 for borrowing money from a customer and $2,500 for material misrepresentations to the Securities Division.
In December 2015, the Securities Division initiated an investigation after receiving a formal complaint alleging Ray improperly borrowed a customer’s money. Ray claimed he borrowed money from a former—not current—customer. A promissory note and other information and documentation obtained by the Division substantiated the allegation Ray borrowed from a current customer.
Ray also represented to the Division during the investigation that the Financial Industry Regulatory Authority (FINRA) had investigated his borrowing activities and found no violation. In January 2017, however, FINRA provided Ray with an impending enforcement action, including sanctions for violating its rule relating to borrowing from customers.
When Ray’s six-month suspension ends, he may apply for registration in Mississippi under heightened supervision, provided he has paid the administrative penalty. See Miss. Code § 75-71-412. Heightened supervision may include measures such as e-mail review, unannounced audits, additional training, and daily review of trades.
For more information about the Secretary of State’s Securities Division, visit http://www.sos.ms.gov/Securities/Pages/default.aspx or call (601) 359-1334.
