And By ‘Outstanding Experience’ the Alleged-$11 Million Fraudster Meant a History of Compliance Violations

finra And By Outstanding Experience the Alleged $11 Million Fraudster Meant a History of Compliance ViolationsIt’s called the FINRA BrokerCheck, people, and before you give some schmloe your money, it wouldn’t hurt to use it. The Securities and Exchange Commission announced charges today against a New York-based fund manager named Jason J. Konior, who allegedly sold $11 million worth of limited partnerships in his Absolute Fund LP, then siphoned proceeds to pay redemptions from earlier investors. So, like, a pyramid scheme.

And poor you if you invested. On the other hand, a quick search on the aforementioned BrokerCheck might have saved you a penny. For it turns out that Mr. Konior, who billed himself on his blog as “an investment advisor in New York with many years of outstanding experience,” amassed a laundry list of compliance violations, including:

in 2008, a $10,000 fine levied under the Connecticut Uniform Securities Act for acting as an unregistered agent;

in 2007, a license suspension for recommending a client purchase more than $200,000 in a “volatile and speculative” stock, for which Mr. Konior did not have reasonable grounds to think his client was well-suited;

in 2006, a license suspension for failing to pay an arbitration award;

in 2005, a $3,000 settlement for executing a trade that was unsuitable to a client’s knowledge or financial situation;

in 2003, a $9,999 settlement for unauthorized trading on behalf of a client;

in 2003, a $150,000 settlement for “excessive trading.”

Not to mention a guilty plea for petit larceny and a conviction for assault in the third degree. Did we mention that he worked for 17 different securities firms between 1996 and 2005? All of which is indeed rather outstanding.

 

 

http://brokercheck.finra.org/Individual/IndividualSummary.aspx?SearchGroup=Individual&FirmKey=-1&BrokerKey=2818111