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FINRA Suspends Los Angeles Broker Kevin Murphy: $10,000 Fine
Former Electronic Transaction Clearing broker Kevin Murphy (CRD# 1645347) was recently the subject of a disciplinary action levied by the Financial Industry Regulatory Authority over allegations he participated in an undisclosed private securities transaction and in undisclosed outside business activities. Formerly registered with Velox Securities, Murphy was issued a seven-month suspension and a fine of $10,000.
According to an order (No. 2017054548001) dated November 2019, Kevin Murphy was registered with Electronic Transaction Clearing when, between July and September 2016, he engaged in a private securities transaction away from, and undisclosed to his member firm when he solicited and negotiated “a $500,000 investment in exchange for shares of common stock of Velox Securities,” a FINRA member firm. The order states that he solicited the investment from a pair of individuals “who jointly owned a corporation” that was a customer of Electronic Transaction Clearing, and the investment was solicited with the goal of providing “funding for Velox Securities to become a FINRA member firm and operate as a clearing firm.” FINRA states, however, that Murphy did not provide his member firm with prior written notice about his involvement in the $500,000 investment, a violation of FINRA Rules 3280 and 2010; and that he also “engaged in undisclosed outside business activities on behalf of Velox Securities” between July and December 2016, activities that included serving as an officer of Velox Securities. FINRA states that his failure to provide his firm with written notice about these outside business activities violated FINRA Rules 3270 and 2010. In connection with the foregoing alleged conduct, Murphy was issued a seven month suspension from associating with any FINRA member firm in any and all capacities. He was also ordered to pay a fine of $10,000.
Kevin Murphy is currently not registered with any FINRA member firm. His previous registrations include Velox Securities, Electronic Transaction Clearing, Linsco/Private Ledger Corporation, Mark Stewart Securities, Assent LLC, Computer Clearing Services, Precision Securities, National Clearing Corporation, Charles Schwab & Company, Del Mar Securities, and Dean Witter Reynolds. He has passed five securities industry qualifying examinations and his BrokerCheck report currently lists no state securities licenses. (Information current as of May 6, 2020.)