Keith David Pagan – and the firm that employs him or her – is regulated by the Financial Industry Regulatory Authority (FINRA).
If you are like most people, before you go out to dinner at a new restaurant, you probably take a quick look at the reviews. This makes sense; you are going to pay for an expensive dinner, and you need to be sure that you are getting a good value.
Yet, when choosing a financial advisor, many people fail to conduct this same level of due diligence. Before turning over access to your money, you need to be sure that you have found a financial advisor that you can trust. Here, our audit report, including details of allegations, complaints, and sanctions will help you decide whether or not to invest with Keith David Pagan.
The stock market is a device for transferring money from the impatient to the patient… Warren Buffet
BrokerComplaints.com is currently investigating allegations related to Keith David Pagan. We provide a free platform for investors to help them in their claims against negligent brokers and brokerage firms.
About Keith Pagan
Keith David Pagan is an Investment Adviser. Keith David Pagan’s Central Registration Depository (CRD) number is 3111825 and the FINRA Profile can be found at – https://brokercheck.finra.org/individual/summary/3111825.
Click here to download a Detailed Audit Report for Keith David Pagan.
Keith David Pagan has previously been reprimanded and has disclosures and/or client dispute(s) listed at FINRA BrokerCheck.
Accusations and Disclosures
You can find below, a quick snapshot of Keith David Pagan’s regulatory actions, arbitrations, and complaints.
DISCLOSURE 1 –
- Event Date: 9/28/2016
- Disclosure Type: Regulatory
- Disclosure Resolution: Final
- Disclosure Detail :: DocketNumberFDA:
- Initiated By: UNITED STATES SECURITIES AND EXCHANGE COMMISSION
- Allegations: IA Release 40-4537, September 28, 2016: The SEC deems it appropriate and in the public interest that public administrative and cease-and-desist proceedings be, and hereby are, instituted pursuant to Section 203(k) of the Advisers Act against Keith D. Pagan. In anticipation of the institution of these proceedings, Pagan has submitted an Offer of Settlement which the Commission has determined to accept. Solely for the purpose of these proceedings and any other proceedings brought by or on behalf of the Commission, or to which the Commission is a party, and without admitting or denying the findings herein, except as to the Commission’s jurisdiction over him and the subject matter of these proceedings, which are admitted, and except as provided herein, Respondent consents to the entry of this Order Instituting Administrative and Cease-and-Desist Proceedings Pursuant to Sections 203(f) and 203(k) of the Investment Advisers Act of 1940, Making Findings, and Imposing Remedial Sanctions and a Cease-and-Desist Order. On the basis of this Order and Respondent’s Offer, the Commission finds that from January 2013 through April 2014, an principal of a commission-registered investment adviser (the IA) invested about a third of the assets held by the RIA’s individual clients into its new mutual fund. The RIA and Pagan failed to disclose to clients the material conflicts of interest inherent in these investments due to the adviser’s financial incentives to invest clients in the affiliated mutual fund. Pagan also caused the RIA’s violations of the Advisers Act relating to compliance rules and Form ADV delivery requirements, which were tasks he was specifically required to perform pursuant to the RIA’s policies and procedures. By virtue of this conduct, the RIA violated Section 206(2) of the Advisers Act, and Pagan caused its violations. Pagan also caused the RIA’s violations of Sections 206(4) and 204(a) of the Advisers Act and Rules 206(4)-7 and 204-3 thereunder.
- Resolution: Order
- Sanction Details :: Sanctions: Cease and Desist Sanctions: Undertaking
DISCLOSURE 2 –
- Event Date: 6/30/2014
- Disclosure Type: Regulatory
- Disclosure Resolution: Final
- Disclosure Detail :: DocketNumberFDA: 14-BCC-014
- DocketNumberAAO: 14–014
- Initiated By: NATIONAL FUTURES ASSOCIATION
- Allegations: NFA RELEASE, JUNE 30, 2014: HAVING REVIEWED THE INVESTIGATIVE REPORT SUBMITTED BY THE COMPLIANCE DEPARTMENT OF NATIONAL FUTURES ASSOCIATION, AND HAVING FOUND REASON TO BELIEVE THAT NFA REQUIREMENTS ARE BEING, HAVE BEEN OR ARE ABOUT TO BE VIOLATED AND THAT THE MATTER SHOULD BE ADJUDICATED, NFA’S BUSINESS CONDUCT COMMITTEE ISSUES THIS COMPLAINT AGAINST KEITH D. PAGAN AND A FIRM. PAGAN AND THE FIRM FAILED TO MAKE TIMELY REIMBURSEMENT PAYMENTS TO A COMMODITY POOL FOR ITS MONTHLY OPERATING EXPENSES THAT EXCEEDED THE EXPENSE LIMITATION AGREEMENT’S MONTHLY EXPENSE CAP, INCLUDING A $102,000 ARREARAGE. PAGAN AND THE FIRM HAVE FAILED TO PAY THE COMMODITY POOL APPROXIMATELY $20,000 THEY OWE IT AS REIMBURSEMENT FOR ITS EXCESS OPERATING EXPENSES. BY REASON OF THE FOREGOING ACTS AND OMISSIONS, PAGAN AND THE FIRM ARE CHARGED WITH VIOLATIONS OF NFA COMPLIANCE RULE 2-4. PAGAN AND THE FIRM MADE WILLFUL MISREPRESENTATION TO PARTICIPANTS IN THE COMMODITY POOL FUND CONCERNING THE POOL’S ASSETS. PAGAN AND THE FIRM ALSO WILLFULLY PROVIDED FALSE AND MISLEADING INFORMATION TO NFA REGARDING THE FINANCIAL SOLVENCY OF THE FIRM AND A LOAN RECEIVED FROM A LENDING FUND. BY REASON OF THE FOREGOING ACTS AND OMISSIONS, PAGAN AND THE FIRM ARE CHARGED WITH VIOLATIONS OF NFA COMPLIANCE RULES 2-2(A) AND (F). PAGAN, AS CEO, FAILED TO ADEQUATELY CARRY OUT HIS SUPERVISORY DUTIES. PAGAN AND THE FIRM LACKED OVERSIGHT AND FAILED TO SUPERVISE THE FIRM’S OPERATIONS. BY REASON OF THE FOREGOING ACTS AND OMISSIONS, PAGAN AND THE FIRM ARE CHARGED WITH VIOLATIONS OF NFA COMPLIANCE RULE 2-9(A).
- Resolution: Decision & Order of Offer of Settlement
- Sanction Details :: Sanctions: Bar (Permanent)
- Sanction Details :: Registration Capacities Affected: ALL CAPACITIES
- Duration: Indefinite
- Duration Explanation: RIGHT TO REAPPLY AFTER 5 YEARS.
- Start Date: 10/28/2014 Sanctions: Civil and Administrative Penalty(ies)/Fine(s)
- Sanction Details :: Amount: $5,000.00 Sanctions: Restitution
- Sanction Details :: Amount: $21,166.13
- Broker Comment: WE WERE COERCED INTO A SETTLEMENT WITH NO DETERMINATION OF THE MERITS OF THE CHARGES OF WRONGDOING. SADLY, THIS IS TYPICAL WHEN THE RESOURCES OF THE ACCUSED PALE IN COMPARISON TO THOSE OF THE REGULATOR. IT IS BEYOND REGRETFUL IN ITS LACK OF FAIRNESS THAT ONE GETS THE JUSTICE ONE CAN AFFORD. WE ARE PROUD OF OUR ENTIRE RECORD AND LOOK FORWARD TO SHARING THE FACTS AND DETAILS.
DISCLOSURE 3 –
- Event Date: 2/6/2010
- Disclosure Type: Judgment / Lien
- Disclosure Resolution:
- Disclosure Detail :: Judgment/Lien Amount: $210,658.00
- Judgment/Lien Type: Tax
- Broker Comment: INITIAL INDICATION WAS THAT THESE WERE DISCHARGED IN 2008. RECENT NOTICES REINSTATED THIS DISPUTE AND LIEN. ONGOING DISPUTE RELATIVE TO INVESTMENTS.
DISCLOSURE 4 –
- Event Date: 1/4/2010
- Disclosure Type: Judgment / Lien
- Disclosure Resolution:
- Disclosure Detail :: Judgment/Lien Amount: $33,996.00
- Judgment/Lien Type: Tax
- Broker Comment: INITIAL INDICATION WAS THAT THESE WERE DISCHARGED IN 2008. RECENT NOTICES REINSTATED THIS DISPUTE AND LIEN. ONGOING DISPUTE RELATIVE TO INVESTMENTS.
DISCLOSURE 5 –
- Event Date: 6/9/2000
- Disclosure Type: Customer Dispute
- Disclosure Resolution: Closed-No Action
- Disclosure Detail :: Allegations: CUSTOMER ALLEGES THAT FC PURCHASED MORE SHARES OF A STOCK THAN SHE HAD AUTHORIZED AND THAT HE DID NOT FOLLOW HER INSTRUCTIONS TO SELL THE STOCK.
- Arbitration Docket Number:
According to a study prepared for the FINRA Investor Education Foundation, 80 percent of American investors report that they have been solicited to participate in a fraud scheme, while 11 percent of American investors report that they personally lost money as a result of fraud.
FINRA notes that the rate of investment fraud is most likely much higher than it is reported. This is because many victims of financial advisor scams are too ashamed to come forward. Further, the study also found that a significant number of investors do not know how to spot common red flags of investment fraud. The least you should do is share your experience with other potential victims of investment scams.
Previous Associations
Under federal securities law and securities industry regulations, registered investment firms have a legal duty to supervise their financial advisors. Section 15(b)(4)(E) of the Securities and Exchange Act of 1934 makes a securities firm liable for the conduct of representatives.
- MERCURY SECURITIES, LLC (CRD#: 40368) :: 10/24/2012 – 11/24/2014 :: NOVATO, CA
- BELVEDERE GLOBAL INVESTORS LLC (CRD#: 129715) :: 9/12/2008 – 11/29/2010 :: TIBURON, CA
- SANCTUARY SECURITIES LLC (CRD#: 144091) :: 10/17/2007 – 2/25/2009 :: BELVEDERE, CA
- BIGELOW & COMPANY (CRD#: 38636) :: 2/24/2005 – 10/15/2007 :: BELVEDERE, CA
- PENSION PLANNERS SECURITIES, INC. (CRD#: 14068) :: 8/12/2003 – 9/30/2004 :: SACRAMENTO, CA
- SALOMON SMITH BARNEY INC. (CRD#: 7059) :: 4/28/2000 – 11/21/2001 :: NEW YORK, NY
- MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED (CRD#: 7691) :: 9/30/1998 – 4/28/2000 :: NEW YORK, NY
The duty to supervise securities representatives is a strong legal requirement. Registered investment firms must take many different steps to ensure that they are protecting their customers from irresponsible and criminal financial advisors.
Legit or Not?
Unfortunately, stockbroker fraud is more common than many investors would like to think. And yes, stockbrokers (including Keith David Pagan, but not limited to) can (and do) steal money from their clients. While it’s rare that a broker will literally steal his client’s money (though that does happen), typically the “theft” of investment funds comes in the form of other fraudulent violations of securities law and FINRA rules which leads to significant investment losses.
Sometimes investment losses occur because advisors, stockbrokers, and even brokerage firms, commit fraud. Massimo Vignelli
Investors generally understand that there are risks associated with buying and selling securities. The market can go up, and the market can go down. No matter how skilled of an investor you are, there are always risks. With that being said, sometimes investment losses cannot be blamed on simple back luck.
There are 10 major types of complaints we receive against Investment Brokers –
- Outright Theft (Conversion of Funds)
- Unauthorized Trading
- Misrepresentation or Omission of Material Facts
- Excessive Trading (Churning)
- Lack of Diversification
- Unsuitable Investment Recommendations
- Failure to Disclose a Personal Conflict of Interest
- Front Running of Transactions
- Breakpoint Sale Violations
- Negligent Portfolio Management
Do your due diligence before investing. Public records are available for everybody to review and decide on the safest bet.
How to Protect Yourself
We, as citizens, place a great deal of trust in the financial advisors who are tasked with helping us achieve and maintain financial security. Most of the time financial advisors and stockbrokers are honest folks who work diligently in their client’s best interests. However, on occasion financial advisors and the brokerage firms who employ them mess up and cause serious financial harm to their clients. Sometimes these losses are caused by simple negligence. Other times fraud or other serious misconduct is to blame.
Here are 5 signs that your broker needs to be reported –
- Breach of Fiduciary Duty: Under the Investment Advisers Act of 1940, certain investment professionals, known as registered investment advisors (RIAs), owe fiduciary obligations to their customers. Your investment broker must always look out for your best interests. If you lost money because of your broker’s breach of fiduciary duty, you may be entitled to compensation for the full value of your damages.
- Unsuitable Investments: Many financial advisors are not fiduciaries. Instead, they are held to the suitability standard. These stockbrokers and financial advisors can only sell and recommend financial products that are appropriate for a customer’s unique investment profile. If you lost money in unsuitable investments, you should consider reporting them.
- Material Misrepresentations or Omissions: Brokers have a duty to make fair and honest representations to their clients. If they fail to do so, and an investor loses money due to a misrepresentation or a material omission, the broker may be liable for the investor’s losses.
- Lack of Diversification: Brokers must also act with the appropriate level of professional skill. Pushing a customer into over-concentrated investments is highly risky. Brokers can be held liable for losses sustained because of an investor’s inappropriate lack of diversification.
- Excessive Trading (Churning): Stockbrokers and financial advisors must have a well-grounded, reasonable basis to execute all trades. Unfortunately, there are cases in which brokers will frequently trade on a customer’s account, simply to increase their own fees. This unlawful practice is known as churning.
- Unauthorized Trading: Brokers must have the proper legal authority to make transactions on behalf of a client. If you lost money because your broker made trades that you never approved of, you may have been the victim of unauthorized trading. You should consult with an experienced attorney.
Report Keith Pagan
In order to prevail in an investment fraud lawsuit or FINRA arbitration cases, you must be able to assert a viable ‘cause of action’.
Keith David Pagan – and the firm that employs this broker – is regulated by the Financial Industry Regulatory Authority (FINRA). FINRA provides an online form to allow investors to file a formal complaint against their financial advisor, stockbroker, or brokerage firm.
Click here to go to FINRA’s Online Complaint Form →
This form will ask you for specific information related to your complaint. Be prepared by gathering the following:
- Name and symbol for the investment product in question.
- The CRD number (3111825) for the broker – Keith David Pagan
- Your complete contact information.
Remember, it is advised to report your broker to FINRA, only after you have exhausted all of your other remedies and carefully prepared a compelling complaint. Once you file a complaint against your broker at FINRA, your case will be bound by FINRA’s rules and the arbitration panel’s eventual decision. The time clock will start, and your complaint will be served on your broker or broker-dealer.
The views and opinions expressed in these articles are those of the source BrokerComplaints.com and do not necessarily reflect the official position of ‘The Skeptic Files,’ which shall not be held liable for any inaccuracies presented. The information provided within this article is for general informational purposes only. While we try to keep the information up-to-date and correct, there are no representations or warranties, express or implied, about the completeness, accuracy, reliability, suitability or availability of the information in this article for any purpose.
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