Florida Broker Suspended for Two Months for FINRA Violations
Nathaniel Walter Adams (CRD#: 5703267) is a previously registered investment adviser (RIA) and previously licensed securities broker. From 2016 to 2022, Mr. Adams was a representative of Infinex Investments in Lakes Wales. For three months in 2022, he worked at LPL Financial, LLC. Finally, from November of 2022 to May of 2023, Mr. Adams served as a registered representative of AAG Capital in Wesley Chapel, Florida.
In May of 2023, Mr. Adams was charged with a criminal offense in relation to allegations that he improperly used a two-way device to steal trade secrets from a former employer. Soon after, Mr. Adams was permitted to resign by AAG Capital. Recently, the Financial Industry Regulatory Authority (FINRA) took enforcement action. Here, our Miami securities fraud lawyer discusses the enforcement action taken against the financial advisor in more detail.
Florida Broker Fined and Suspended in Relation to Customer Information Trade Secret Case
In June of 2024, FINRA announced its enforcement action against former AAG Capital registered representative Nathaniel Walter Adams. Notably, the self-regulatory body launched an investigation into this broker’s conduct after receiving the U-5 Form indicating that he was separated from his member firm following allegations of misconduct.
The key allegations in this case are centered around conduct that Mr. Adams engaged back in June of 2022, shortly before he left Infinex Investments in Lakes Wales, Florida. According to the allegations, Mr. Adams improperly emailed an unencrypted spreadsheet that contained sensitive (private) personal details of more than 2,000 brokerage firm customers to a family member’s email. Mr. Adams then allegedly used that information at his future firm to gain an advantage.
Criminal and civil action was taken against former Infinex Investments broker Nathaniel Walter Adams for violating FINRA regulations and breaking trade secret laws. Broadly defined, a trade secret is a type of intellectual property that comprises confidential business information which provides an enterprise a competitive edge. Some common examples that can be an issue in the financial industry include client lists and proprietary trading algorithms.
Broker Sanctions: Fine and Suspension
Without admitting to or rejecting any of the specific allegations raised in this case, former FINRA broker Nathaniel Walter Adams consented to findings that he violated FINRA Rule 2010 in relation to his downloading confidential customer information shortly before leaving his member firm. The protection of the personal identifying information of investors is very important, Along with other things, FINRA imposes the following penalties against this broker:
- A $5,000 fine; and
- A two month suspension from the securities industry.
Consult Our Miami Securities Fraud Attorney for a Confidential Initial Consultation
At Carlson & Associates, P.A., our Miami investor losses attorney has the skills, tenacity, and proven experience you can count on. If you suffered investment losses because your broker breached FINRA regulations, we are here to help. Contact us today to arrange a fully private initial consultation. Our firm represents investors in South Florida and throughout the whole region.
Source:
brokercheck.finra.org/individual/summary/5703267