Thomas allegedly engaged in outside business activities through a company he formed and controlled without providing notice to his member firm.
The Sonn Law Group is investigating allegations that Raymond Thomas engaged in unauthorized outside business activities. If you or a family member has suffered losses investing, we want to discuss your case. Please contact us today for a free review of your case.
Raymond Thomas (CRD#: 1675282) was recently named in a FINRA complaint concerning his activities while employed with Network 1 Financial Securities (“Network 1”) between February 2014 and September 2017.
According to the complaint, Thomas engaged in outside business activities through a company he formed and controlled, Waverly Capital Group, Inc. (“Waverly Capital”), without providing prior notice to Network 1.
Specifically, Thomas functioned and held himself out as an officer, director, and employee of Waverly Capital. As Waverly Capital’s “Chairman” and “General Manager,” Thomas caused Waverly Capital to enter into a number of agreements, including a consulting agreement with an international venture capitalist.
Many of those agreements show that Thomas had the reasonable expectation of compensation for the activities he performed on behalf of Waverly Capital. Thomas was, in fact, compensated for the outside business activities he performed for Waverly Capital.
Thomas opened bank accounts in Waverly Capital’s name, used those bank accounts to receive numerous third-party wire deposits from entities and individuals with whom Waverly Capital conducted business, and thereafter withdrew cash from the accounts or used the proceeds to pay for his personal expenses. Thomas failed to provide prior written notice of these outside business activities to Network 1, in violation of FINRA Rules 3270 and 2010.
In addition, Thomas repeatedly provided false or misleading information to FINRA Staff in an effort to conceal that he was engaged in outside business activities. During a June 2017 branch examination, Thomas falsely told FINRA Staff that he did not participate in any outside business activities.
Likewise, when FINRA Staff requested, pursuant to FINRA Rule 8210, that Thomas identify all bank accounts that he controlled, for which he had signatory authority, or in which he had a beneficial interest, Thomas did not identify any of the bank accounts that he had established for Waverly Capital, even though he had withdrawn nearly $100,000 from those accounts in the preceding 14 months.
Finally, when FINRA Staff took Thomas’ sworn testimony pursuant to FINRA Rule 8210, he falsely testified, among other things, that his mother had created Waverly Capital and that he did not have control of or signatory authority for any of Waverly Capital’s bank accounts.
In March of 2018, Thomas was terminated from Network 1 after failing to provide records requested by the Firm.
Thomas was the subject of one customer dispute over the course of his career that was settled for $5,000. The customer alleged unauthorized trading in his account.
Contact Us Today
The Sonn Law Group is currently investigating allegations that Raymond Thomas was engaged in outside business activities. We represent investors in claims against negligent brokers and brokerage firms. If you or your loved one experienced investment losses, we are here to help. For a free consultation, please call us now at 866-827-3202 or complete our contact form.