Broker Receives $10,000 Kick-Back after Encouraging His Customer to Loan Money to an Entertainment Company, According to Securities Regulators

Carlos Evertsz-Seda, a general securities representative with K.C. Ward Financial, was suspended from the securities industry for one month and fined $5,000 by the Financial Industry Regulatory Authority in connection with claims that Seda engaged in outside business activity.

In 2012, Seda solicited one of his firm’s former customers to provide a $60,000 loan to an entertainment company, according to FINRA. Seda received $10,000 from the entertainment company shortly after the loan was made, according to FINRA. Generally, a registered representative who fails to provide his firm with notice that he is engaging in business activity outside the scope of the relationship with his firm is in violation of regulatory rules designed to protect the investing public.

Seda consented to his fine and suspension without denying or admitting FINRA’s factual allegations.

Investors who believe they lost money as a result of investment fraud or misconduct may contact the securities lawyers at Peiffer Rosca, Alan Rosca or Joe Peiffer, for a free, no-obligation evaluation of their recovery options, at 888-998-0520.

phil korosec (1252 Posts)

In our legal system, every person is innocent until and unless found guilty by a court of law or a tribunal. Whenever we reference “allegations” or charges that are “alleged,” such allegations or charges have not been proven, and are merely accusations, not findings of fault, as of the date of the blog. We do not have, nor do we undertake, a duty to continue to monitor or follow cases about which we report, and/or to publish subsequent blogs regarding various developments that may occur in such cases. Readers are encouraged to conduct their own research regarding any such cases and any developments that may or may not have occurred in such cases.