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Man Suggests That His Employment By Brokerages That Get Shut Down And His Own Recent Suspension Are Merely Unfortunate Coincidences

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The practice of scurrying from one failing or fraudulent brokerage to another even has a wonderfully evocative name: cockroaching. And the wiliest of the cockroachs, according to the Journal, is Kenneth Dwyer, who's closed down half of the brokerages he's worked for but will have to wait awhile to notch his next.

Regulators expelled the first brokerage firm where Kenneth Dwyer sold securities. They did the same to his third, fourth, seventh and eighth. His 10th closed in June after regulators accused it of fraud….

Regulators on Sept. 30 suspended Mr. Dwyer for nine months and fined him $10,000, for allegations that included excessive trading, filings show. Mr. Dwyer agreed to the sanctions without admitting or denying wrongdoing….

In an interview before the disciplinary action against him, Mr. Dwyer, 37 years old, declined to comment on the regulatory matter and on claims involving him through his career. About his former employers' track records, he said: "It's just unfortunate."

Anyone care to hazard a guess as to which which brokerage was his last?

Mr. Dwyer left EKN in September 2011, eventually landing at his 10th brokerage, John Thomas Financial of New York City….

Mr. Dwyer left John Thomas Financial in June, the month that firm closed, and hasn't been registered with Finra since then, his regulatory records show.

Finra and the SEC each took enforcement action earlier this year against John Thomas and its CEO, Anastasios "Tommy" Belesis. Among the allegations: defrauding investors in a penny stock. Ira Sorkin, a lawyer for Mr. Belesis, said his client will fight the charges, which he said are "in many respects unfounded."

More Than 5,000 Stockbrokers From Expelled Firms Still Selling Securities [WSJ]


"Brokers who show up with stubble are sent to the bathroom, where a bow-tied attendant dispenses razors, cologne and candy."

Back in February, FINRA informed John Thomas Financial founder Anastasios “Tommy” Belesis, he of rallies for Wall Street and Wall Street 2: Money Never Sleeps fame, that he "may face disciplinary action on a claim that he artificially inflated the price of a stock," while the Post reported that the firm was being probed by the FBI and the SEC. According to the firm's lawyer, Robert Bursky, "There is not a shred of evidence that suggests there is an ongoing inquiry by the FBI," and if you asked David Pitts, a spokesman for John Thomas, if the brokerage is a boiler room, which Bloomberg did, he'd say it is not (and that, on the contrary, "it helps real companies raise money and provides honest advice to investors"). Regardless of whether or not any of the allegations are true, a few business practices one might want to avoid if questions like "is this place legit" or "is this business entirely modeled after 2000's Boiler Room" are being raised include: