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.

Alan Rosca (1163 Posts)

Alan is a securities lawyer. He also teaches Securities Regulation at the Cleveland-Marshall College of Law. He focuses his legal practice on complex commercial and financial litigation and arbitration, particularly in the areas of securities and investment fraud. His office is in Cleveland, Ohio.


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