NEWARK
– Attorney General Paula T. Dow today
announced that an Illinois-based securities
company has been assessed a $10,000 civil
penalty by the New Jersey Bureau of Securities
(NJBOS) for failure to reasonably supervise
two employees at its Brick, New Jersey office.
Regal
Securities allowed employees Kenneth D.
Franklin and Michael J. Kelly to make investments
for consumers when neither was registered
with the NJBOS as an agent as legally required.
In 2005 and 2006, Franklin conducted approximately
495 transactions and Kelly conducted approximately
60 transactions on behalf of investors,
both while unregistered.
“Financial
firms must exercise proper supervision of
their employees, and ensuring representatives
are registered is fundamental to protecting
clients,” Attorney General Dow said.
“The Bureau will continue policing
these obligations on behalf of New Jersey’s
investors.”
Franklin
previously paid a $21,000 civil penalty
to the NJBOS and Kelly paid a $10,000 civil
penalty, for the unregistered activity.
“Giving
hard-earned money to an unregistered person
to invest creates unnecessary risk,”
said Marc B. Minor, Chief of the NJBOS.
“The Bureau of Securities within the
Office of the Attorney General will continue
to aggressively enforce our investor protection
laws.”
Minor
noted that Regal Securities has now implemented
a computerized broker surveillance system
to better monitor its employees.
The
NJBOS can be contacted toll-free within
New Jersey at 1-877-I-INVEST
(1-877-446-8378) or from outside New Jersey
at 973-504-3600. The Bureau's
web site is located at www.njsecurities.gov.
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