For immediate release: May 19, 2020
Contact: Maura Browning, Communications Director
(573) 526-0949
St. Louis County Investment Adviser Allegedly Forges Client Signatures, Conducts Other Ethical Violations
Jefferson City, Mo. — Secretary of State Jay Ashcroft’s Securities Division ordered Sean A. Brady to cease and desist after he allegedly engaged in multiple instances of dishonest and unethical conduct in providing investment advice.
Between 2012 and 2017, while Brady was employed as an investment adviser representative and broker-dealer agent with First Allied Securities Inc., he allegedly engaged in multiple instances of dishonest and unethical conduct.
Brady, who resides in Oakville, Missouri, ignored requests for documents by a self-regulating securities body. He exercised discretion in clients’ accounts by placing them in non-liquid investments, many times without clients’ knowledge. Brady forged clients’ signatures on documents many times, and he falsely inflated investors’ liquid net worth on documents ostensibly to pass his firm’s suitability review. He violated the Missouri Code of State Regulations regarding suitability for non-liquid investments. In violation of his firm’s policies, he produced and provided consolidated account reports to clients and sent text messages to clients. Brady also engaged in material misrepresentation and omissions with clients with regard to investments.
After the allegations, the Financial Industry Regulatory Authority Inc. barred Brady from associating with any securities broker dealer due to his misconduct.
At the time of violations, the clients were residents of Arnold, Chesterfield, High Ridge, Imperial and Lesterville, Missouri, along with Naples, Florida.
“You should check out anyone who solicits investment opportunities or gives financial advice,” Ashcroft said. “Call our office or go online to find out if the person is registered or has any prior disciplinary history before investing with them.”
The division ordered Brady to show cause why he should not be ordered to pay restitution plus interest, civil penalties, investigation costs and disgorgement of profits in the form of commissions totaling at least $497,872.
Ashcroft urges all investors to know the risks. If you have any questions about an investment opportunity or wish to check the background and registration status of a financial adviser, please call the toll-free investor protection hotline at 800-721-7996, or go online to www.missouriprotectsinvestors.com to file a complaint.
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Visit www.sos.mo.gov to learn more about the Office of the Missouri Secretary of State.