|NEWARK – The New Jersey Division of Consumer Affairs and the Bureau of Securities announced that a California-based securities company, WestPark Capital, has been assessed a civil monetary penalty for failure to reasonably supervise a financial broker it employed, who previously had his registration with the Bureau revoked.
WestPark Capital permitted the broker, Harry Datys, 47, of Warwick, New York, to conduct financial transactions for New Jersey residents when he was not registered with the Bureau as an agent of WestPark Capital. Specifically, Datys conducted financial transactions for up to four New Jersey residents after his registration was revoked by the Bureau in May 2008. Datys caused these New Jersey clients to change their addresses from their actual addresses in New Jersey to either a business address or a post office box located in New York. Datys caused these address changes, in violation of WestPark Capital’s operating policies, in order to continue to do business with them without being registered in New Jersey.
“The deception conducted by this individual, and also the firm’s failure to monitor it, will not be tolerated,” Acting Attorney General John J. 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.”
WestPark Capital, which does not have an office in New Jersey, cooperated with the Bureau’s investigation. WestPark Capital was assessed a $50,000 civil penalty, with $20,000 suspended. Datys was assessed a $15,000 civil penalty and his registration remains revoked.
“All financial brokers, including out-of-state brokers, will be held accountable when they try to get around New Jersey’s registration requirements for the securities industry,” said Steve C. Lee, Acting Director of the New Jersey Division of Consumer Affairs. “We will always put New Jersey investors first and work to protect them.”
“Performing due diligence is a vital first step before an investment is made,” said Amy G. Kopleton, Acting Chief of the Bureau of Securities. “Every person working in the state’s Securities industry, and also the products offered to investors, must be registered with the Bureau unless exempt. The Bureau is here as a resource for investors and as the watchdog against investment fraud.”
Stephen Bouchard, Director of Broker-Dealer Investment Adviser Examinations at the Bureau, conducted the investigation.
The Bureau can be contacted toll-free within New Jersey at 1-866-I-INVEST (1-866-446-8378) or from outside New Jersey at 973-504-3600. The public is encouraged to visit the Bureau's web site at www.njsecurities.gov.