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Blakely Page: FINRA Suspends Bryn Mawr Advisor over Hedge Fund Stats
Securities regulators recently sanctioned Blakely Page (CRD# 2922955), formerly a representative of Spouting Rock Capital Advisors. Financial Industry Regulatory Authority records show that the former Bryn Mawr, Pennsylvania-based broker and investment advisor allegedly made negligent representations to investors.
According to a Letter of Acceptance, Waiver, and Consent (No. 2019062612901) issued in May 2020, Blakely Page formed a hedge fund in 2017, when he was registered with Spouting Rock Capital Advisors. FINRA’s findings state that he formed this fund, known as the Feeder Fund, in order “to pool investor funds and make an investment in another, unaffiliated hedge fund” known as the Master Fund. That same year, he “gathered information from the Master Fund” to be used in marketing materials for the Feeder Fund. FINRA’s findings state specifically that the Master Fund “provided unaudited financials claiming that the fund had realized, net of fees, a rate of return exceeding 80% in 2016.” Mr. Page allegedly did not independently verify these figures, which FINRA states “significantly overstated the Master Fund’s historic rate of return, a material fact.”
From October 2017 until October 2018, the AWC Letter continues, Mr. Page distributed marketing materials that contained materially inaccurate information “to more than two dozen prospective investors.” Additionally, he allegedly “exchanged emails with multiple prospective investors in which he affirmed the accuracy of the Master Fund’s performance results as set forth in the Feeder Fund’s marketing materials.” FINRA states that investors in the Feeder Fund made “seven different investments… totaling approximately $1.7 million.” These investors received full redemptions when the Master Fund “stopped providing continuing performance information and other customary investment materials to the Feeder Fund.” FINRA found that Mr. Page’s allegedly negligent misrepresentations of material facts constituted violations of FINRA rules, issuing him a six-month suspension from associating with any FINRA member and fining him $5,000.
According to the Financial Industry Regulatory Authority, Blakely Page holds 21 years of securities industry experience. He was most recently based in Bryn Mawr, Pennsylvania as a broker and investment advisor with Spouting Rock Capital Advisors from 2007 until 2021. His past registrations include Cascade Financial Management, Banc of America Securities, Susquehanna Financial Group, Thomas Weisel Partners, and Morgan Stanley & Company. His credentials include the passage of four securities industry qualifying examinations: the General Securities Principal Examination, or Series 24; the General Securities Representative Examination, or Series 7; the Securities Industry Essentials Examination, or SIE; and the Uniform Securities Agent State Law Examination, or Series 63. He is not currently licensed as a broker or as an investment advisor. (Information current as of August 14, 2022.)
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