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Kari Bracy: Ex-NYLife Broker Barred After Future Income Payments Probe
Kari Bracy (CRD# 5656186), a financial professional previously working as a broker in Jacksonville Beach, Florida, has been barred by the Financial Industry Regulatory Authority over allegations involving the potential misuse of customer funds and a potential undisclosed outside business activity.
According to a Letter of Acceptance, Waiver and Consent (No. 2018059595101) dated January 2020, Kari Bracy was associated with NYLife Securities as an Investment Company Variable Contracts Representative from July 2009 until January 30, 2019, when the firm disclosed her termination. FINRA subsequently commence an investigation into her “sale of a Future Income Payments, LLC’s structured cash flow settlement” involving pension streams. As part of this probe, FINRA sent her a request on December 30, 2019 to appear on January 16, 2020 and provide on-the-record testimony about the matters under FINRA’s inquiry, as it is empowered to do by FINRA Rule 8210. FINRA’s findings go on to state that in a December 31, 2019 phone call with FINRA staff, she acknowledged that she had received its request for testimony, but that she had no intention to appear and provide it, which she then did not when the scheduled date arrived. According to FINRA, this refusal violated FINRA Rules 8210 and 2010. As a result of the foregoing alleged conduct, she was barred from associating with any FINRA member firm.
Her BrokerCheck report also lists one customer complaint against her. Filed in July 2018, the complaint alleges that as a representative of NYLife Securities, she misrepresented an investment in Future Income Payments LLC, which was a private securities transaction, as “conservative and safe,” with a 7.5% annual return for ten years. The complaint reached a settlement in November 2018 of $80,000.
Kari Bracy is currently not registered as a broker or investment adviser. Her previous registrations include NYLife Securities in Jacksonville Beach, Florida. She has passed three securities industry qualifying examinations and her BrokerCheck report lists zero state securities licenses. (Information current as of May 15, 2020.)