Securities Arbitration Lawyer Blog
FINRA has barred former WestPark Capital broker Gregory Walter McCloskey from the securities industry. According to an Office of Hearing Officers (“OHO”) order, McCloskey participated in two undisclosed private securities transactions involving a customer who was an elderly, retired widow and then sought to conceal these transactions from his member firms and FINRA.
If you have lost money with Gregory Walter McCloskey, or WestPark Capital, contact FINRA arbitration lawyers Iorio Altamirano LLP for a free and confidential evaluation of your account.
FINRA Disciplinary Proceeding No. 2018059242801
FINRA’s Enforcement filed a Complaint on December 1, 2020, alleging that, while associated with FINRA member firms, between 2008 and 2018, McCloskey participated in two undisclosed private securities transactions.
The first transaction occurred between 2008 and 2009 when McCloskey solicited the elderly customer to purchase $20,000 in shares of stock in a technology company that purportedly developed a wireless network system to control lighting for energy conservation. McCloskey never disclosed the transaction to his member firm.
In 2015 and 2016, during a FINRA investigation into whether McCloskey participated in private securities transactions away from his firm, FINRA asked McCloskey to identify all firm customers who invested in the technology company. While McCloskey identified to FINRA some firm customers who invested in the company in his written response to the Rule 8210 request and during his on-the-record testimony, McCloskey never disclosed to FINRA that the elderly, retired widow invested in the company.
In May 2017, McCloskey settled FINRA’s investigation into his private securities transactions. At the time, FINRA found that McCloskey participated in undisclosed private securities transactions in the technology company with two firm customers. FINRA, however, did not make any findings relating to McCloskey’s private securities transactions with the elderly, retired widow because McCloskey lied to FINRA during its investigation.
The OHO order indicates that, following FINRA’s receipt of information regarding the elderly widow’s complaint, FINRA opened another investigation into McCloskey’s selling away activities, which McCloskey then attempted to obstruct.
In August 2018, while under investigation by FINRA, McCloskey called the customer to urge her to create and sign a false written statement indicating that McCloskey did not participate in any manner in the customer’s $20,000 investment in the company.
McCloskey hid his participation in the customer’s private securities transactions in the technology company from his firms by using an unapproved email account to communicate with the customer about her investment.
McCloskey never provided his member firms with these emails or preserved them. In doing so, he precluded his member firms from reviewing these communications and from complying with their books and records obligations. McCloskey also concealed his misconduct by providing false information to his then firm on an annual compliance questionnaire and to FINRA on a Personal Activity Questionnaire.
On November 5, 2019, WestPark Capital filed a Uniform Termination Notice for Securities Registration (Form U-5) terminating McCloskey’s registration and indicating that the firm had permitted him to resign: (i) due to McCloskey’s failure to follow a heightened supervision plan, and (ii) after allegations were made that accused McCloskey of violating investment-related statutes, regulations, rules and industry standards of conduct.
The firm’s “Selling Away” guidelines prohibited private securities transactions unless registered representatives provided written notice to WestPark Capital’s Chief Compliance Officer (CCO) prior to participating in the proposed transactions.
The OHO decision was published on April 7, 2021. You can read more about selling away here.
Gregory Walter McCloskey (CRD#: 2820510)
McCloskey has 21 years of experience in the securities industry and was registered with WestPark Capital in Newport Beach, CA, between July 2016 and November 2019.
McCloskey was registered as a broker with Newport Coast Securities, Inc. in Irvine, CA, between December 2007 and July 2016. The firm was expelled by FINRA in June 2018.
McCloskey’s public CRD shows one pending customer dispute seeking $20,000 in damages.
How to Recover Losses or Obtain a Free Consultation
If you have lost money with Gregory Walter McCloskey, or WestPark Capital, contact FINRA arbitration lawyers August Iorio and Jorge Altamirano of Iorio Altamirano LLP at august@ia-law.com, jorge@ia-law.com or toll-free at (855) 430-4010 for a free and confidential evaluation of your account.
Iorio Altamirano LLP is a securities arbitration law firm based in New York, NY. We pursue FINRA arbitration claims nationwide on behalf of investors to recover financial losses arising out of wrongful conduct by financial advisors and brokerage firms.