Terrance Richard Hennessy – 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 Terrance Richard Hennessy.
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 Terrance Richard Hennessy. We provide a free platform for investors to help them in their claims against negligent brokers and brokerage firms.
About Terrance Hennessy
Terrance Richard Hennessy is an Investment Adviser. Terrance Richard Hennessy’s Central Registration Depository (CRD) number is 1072712 and the FINRA Profile can be found at – https://brokercheck.finra.org/individual/summary/1072712.
Click here to download a Detailed Audit Report for Terrance Richard Hennessy.
Terrance Richard Hennessy 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 Terrance Richard Hennessy’s regulatory actions, arbitrations, and complaints.
DISCLOSURE 1 –
- Event Date: 6/27/2016
- Disclosure Type: Regulatory
- Disclosure Resolution: Final
- Disclosure Detail :: DocketNumberFDA:
- Initiated By: STATE OF ILLINOIS, ILLINOIS SECURITIES DEPARTMENT
- Allegations: RESPONDENTS RESOURCES PLANNING GROUP, INC., TERRANCE R. HENNESSY AND MICHAEL J. MARIETTI IV VIOLATED SECTION 12.A OF THE ILLINOIS SECURITIES ACT; RESPONDENT RESOURCES PLANNING GROUP, INC VIOLATED SECTION 12.D OF THE ILLINOIS SECURITIES ACT; RESPONDENTS RESOURCES PLANNING GROUP, INC; AND JOSEPH J. HENNESSY, VIOLATED SECTIONS 12.F, 12.G, 12.I AND 12.J OF THE ILLINOIS SECURITIES ACT. HEARING SCHEDULED FOR AUGUST 30, 2016 AT 10:00 A.M.
- Resolution: Stipulation and Consent
- Sanction Details :: Sanctions: Civil and Administrative Penalty(ies)/Fine(s)
- Sanctions: The respondents were assessed 5,000 cost of investigation, jointly and severally which has been paid in full.
DISCLOSURE 2 –
- Event Date: 6/13/2014
- Disclosure Type: Regulatory
- Disclosure Resolution: Final
- Disclosure Detail :: DocketNumberFDA: 2012034822601
- DocketNumberAAO: 2012034822601
- Initiated By: FINRA
- Allegations: RESPONDENT HENNESSY FAILED TO PAY FINES AND/OR COSTS OF $10,000 IN FINRA CASE #2012034822601.
- Resolution: LETTER
- Sanction Details :: Sanctions: Revocation
- Regulator Statement: PURSUANT TO FINRA RULE 8320, RESPONDENT HENNESSY’S FINRA REGISTRATION IS REVOKED AS OF THE CLOSE OF BUSINESS ON JUNE 13, 2014 FOR FAILURE TO PAY FINES AND/OR COSTS.
DISCLOSURE 3 –
- Event Date: 4/3/2014
- Disclosure Type: Regulatory
- Disclosure Resolution: Final
- Disclosure Detail :: DocketNumberFDA: 2012034822601
- DocketNumberAAO: 2012034822601
- Initiated By: FINRA
- Allegations: WITHOUT ADMITTING OR DENYING THE FINDINGS, HENNESSY CONSENTED TO THE SANCTIONS AND TO THE ENTRY OF FINDINGS THAT HE FAILED TO PROVIDE WRITTEN NOTICE TO HIS MEMBER FIRM PRIOR TO, OR EVEN SUBSEQUENT TO, HIS PARTICIPATION IN THE PURCHASE OF MEMBERSHIP INTERESTS IN LIMITED LIABILITY COMPANIES, AS REQUIRED BY THE FIRM’S WRITTEN SUPERVISORY PROCEDURES. THE FINDINGS STATED THAT HENNESSY’S FAILURE TO PROVIDE WRITTEN NOTICE OF HIS PARTICIPATION IN THE PRIVATE SECURITIES TRANSACTIONS, AS WELL AS HIS FIRM’S FAILURE TO INCLUDE THOSE TRANSACTIONS IN ITS BOOKS AND RECORDS, DEPRIVED FINRA OF ITS ABILITY TO OVERSEE HENNESSY’S AND HIS FIRM’S SECURITIES ACTIVITIES SINCE THE FIRM HAD NO RECORD OF THOSE ACTIVITIES. FINRA’S INABILITY TO OVERSEE THE SECURITIES ACTIVITIES WAS COMPOUNDED BY HENNESSY’S MISLEADING AND EVASIVE RESPONSES TO FINRA DURING ITS INVESTIGATION. HENNESSY PROVIDED CONTRADICTORY AND MISLEADING RESPONSES REGARDING HIS INVOLVEMENT IN THE PURCHASE OF MEMBERSHIP INTERESTS BY ONE OF THE COMPLAINING CUSTOMERS. HENNESSY’S MISLEADING RESPONSES IMPEDED AND DELAYED FINRA’S INVESTIGATION OF HENNESSY’S AND HIS FIRM’S INVOLVEMENT IN THE ONE OF THE LIMITED LIABILITY COMPANIES. THE FINDINGS ALSO STATED THAT HENNESSY, AS HIS FIRM’S PRESIDENT AND CHIEF COMPLIANCE OFFICER, FAILED TO IMPLEMENT ANY PROCEDURES OR CONTROLS TO DETERMINE WHETHER HIS FIRM’S REGISTERED REPRESENTATIVES ENGAGED IN PRIVATE SECURITIES TRANSACTIONS, AND IF SO, TO DETERMINE WHAT, IF ANY, RESPONSIBILITIES THE FIRM HAD TO SUPERVISE THE TRANSACTIONS AND INCLUDE THEM IN ITS BOOK AND RECORDS. THE FINDINGS ALSO INCLUDED THAT HENNESSY WILLFULLY FAILED TO DISCLOSE A JUDGMENT ON HIS FORM U4 AND MADE AN AFFIRMATIVE MISREPRESENTATION ON A FORM U4 AMENDMENT. HENNESSY UNDERSTOOD THAT THE JUDGMENT WAS REQUIRED TO BE DISCLOSED AND HE WAS THE FIRM PRINCIPAL IN CHARGE OF FORM U4 DISCLOSURES AT THE TIME. HENNESSY AND HIS FIRM FAILED TO IMPLEMENT PROPER PROCEDURES, AND FAILED TO ENFORCE THEIR OWN PROCEDURES, TO ENSURE ACCURATE AND TIMELY REPORTING OF DISCLOSABLE EVENTS. HENNESSY KNEW ABOUT AN INDIVIDUAL’S DISCLOSABLE EVENTS, YET HE DID NOT ENSURE THAT THEY WERE DISCLOSED ON THE INDIVIDUAL’S FORM U4, AND DID NOT ENSURE ACCURATE REPORTING ON THE INDIVIDUAL’S FORM U5. FINRA FOUND THAT HENNESSY WAS INVOLVED IN OUTSIDE BUSINESS ACTIVITIES THAT HE DID NOT DISCLOSE TO HIS FIRM. THE UNDISCLOSED OUTSIDE BUSINESS ACTIVITIES WERE SEPARATE ENTITIES THAT HENNESSY CREATED, OR PARTICIPATED IN THEIR CREATION, FOR A VARIETY OF BUSINESS PURPOSES, AND OF WHICH HENNESSY WAS AN OFFICER, DIRECTOR, OWNER, MEMBER AND/OR REGISTERED AGENT. THIS FAILURE ALSO DEPRIVED FINRA OF THE ABILITY TO PROPERLY OVERSEE HENNESSY’S FIRM AND ITS REGISTERED REPRESENTATIVES BECAUSE THERE WAS NO WRITTEN RECORD OF THESE ACTIVITIES. HENNESSY’S FAILURE TO DISCLOSE HIS OUTSIDE BUSINESS ACTIVITIES WAS WILLFUL SINCE AS THE PRINCIPAL RESPONSIBLE FOR FORM U4 DISCLOSURES, HENNESSY WAS AWARE OF THE SCOPE OF THE DISCLOSURE REQUIREMENTS AND YET FAILED TO APPROPRIATELY MAKE HIS OWN DISCLOSURES. THIS FAILURE TO DISCLOSE NOT ONLY DEPRIVED FINRA OF ITS OVERSIGHT OVER THE OUTSIDE BUSINESS ACTIVITIES OF HENNESSY, IT ALSO DEPRIVED THE INVESTING PUBLIC OF MATERIAL INFORMATION REGARDING THE ACTIVITIES OF HENNESSY. FINRA ALSO FOUND THAT HENNESSY AND HIS FIRM FAILED TO SUPERVISE AND IMPLEMENT SUPERVISORY PROCEDURES DESIGNED TO COMPLY WITH OUTSIDE BUSINESS ACTIVITY DISCLOSURES OF ITS REGISTERED REPRESENTATIVES, AND FAILED TO ENFORCE THEIR OWN PROCEDURES TO ENSURE ACCURATE REPORTING OF AN INDIVIDUAL’S OUTSIDE BUSINESS ACTIVITIES.
- Resolution: Acceptance, Waiver & Consent(AWC)
- Sanction Details :: Sanctions: Civil and Administrative Penalty(ies)/Fine(s)
- Sanction Details :: Amount: $50,000.00 Sanctions: Suspension
- Sanction Details :: Registration Capacities Affected: ANY CAPACITY
- Duration: 18 MONTHS
- Start Date: 4/7/2014
- End Date: 10/6/2015
- Sanctions: $10,000 OF HENNESSY’S $50,000 FINE IS JOINT AND SEVERAL. THIS SETTLEMENT INCLUDES A FINDING THAT HENNESSY WILLFULLY OMITTED TO STATE MATERIAL FACTS AND WILLFULLY MISREPRESENTED MATERIAL FACTS ON HIS FORM U4, AND THAT UNDER SECTION 3(A)(39)(F) OF THE SECURITIES EXCHANGE ACT OF 1934 AND ARTICLE III, SECTION 4 OF FINRA’S BY-LAWS, THIS OMISSION MAKES HIM SUBJECT TO STATUTORY DISQUALIFICATION WITH RESPECT TO ASSOCIATION WITH A MEMBER.
DISCLOSURE 4 –
- Event Date: 4/1/2012
- Disclosure Type: Investigation
- Disclosure Resolution:
- Disclosure Detail :: Initiated By: UNITED STATES SECURITIES AND EXCHANGE COMMISSION
- Description of Investigation: IT IS CURRENTLY UNKNOWN WHAT THE EXACT INVESTIGATION CONCERNS. WE HAVE ONLY BEEN ASKED TO PROVIDE A BROAD ARRAY OF FILES AND DEPOSITIONS
- Broker Comment: IT IS CURRENTLY UNKNOWN WHAT THE EXACT INVESTIGATION CONCERNS. WE HAVE ONLY BEEN ASKED TO PROVIDE A BROAD ARRAY OF FILES AND DEPOSITIONS
DISCLOSURE 5 –
- Event Date: 9/14/2011
- Disclosure Type: Customer Dispute
- Disclosure Resolution: Settled
- Disclosure Detail :: Allegations: CLIENT ALLEDGES THAT MONEY WAS IMPROPERLY INVESTED ON HER BEHALF IN NON PUBLIC SECURITIES
- Damage Amount Requested: $375,000.00
- Settlement Amount: $150,000.00
- Arbitration Docket Number:
DISCLOSURE 6 –
- Event Date: 2/12/2002
- Disclosure Type: Customer Dispute
- Disclosure Resolution: Denied
- Disclosure Detail :: Allegations: CLIENT ALLEGE UNSUITABILITY IN PURCHASE OF A LIMITED PARTNERSHIP ON OR ABOUT 1991.
- Damage Amount Requested: $464,000.00
- Arbitration Docket Number:
DISCLOSURE 7 –
- Event Date: 10/16/1997
- Disclosure Type: Customer Dispute
- Disclosure Resolution: Settled
- Disclosure Detail :: Allegations: FIDUCIARY BREACH
- Settlement Amount: $150,000.00
- Arbitration Claim File Detail: 97-04994
- 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.
- HLM SECURITIES, INC. (CRD#: 133216) :: 4/22/2005 – 7/18/2013 :: CHICAGO, IL
- ROYAL ALLIANCE ASSOCIATES, INC. (CRD#: 23131) :: 11/19/1989 – 12/9/2004 :: JERSEY CITY, NJ
- INTEGRATED RESOURCES EQUITY CORPORATION (CRD#: 6403) :: 10/17/1985 – 11/19/1989
- NML EQUITY SERVICES, INC. (CRD#: 2881) :: 9/20/1984 – 2/13/1986
- NEW YORK LIFE SECURITIES CORP. (CRD#: 5167) :: 11/16/1982 – 2/19/1985
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 Terrance Richard Hennessy, 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 Terrance Hennessy
In order to prevail in an investment fraud lawsuit or FINRA arbitration cases, you must be able to assert a viable ‘cause of action’.
Terrance Richard Hennessy – 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 (1072712) for the broker – Terrance Richard Hennessy
- 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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