Ronald Marvin (CRD #722277, Registered Representative, Weston, Connecticut)

Limited Partnership Fraud, Mismanagement, Negligent Supervision, Selling Away and Unauthorized Outside Business Activity FINRA Arbitration and Litigation Attorney, Russell L. Forkey, Esq.

October, 2011:

Ronald Marvin (CRD #722277, Registered Representative, Weston, Connecticut) submitted a Letter of Acceptance, Waiver and Consent in which he was barred from association with any FINRA member in any capacity. Without admitting or denying the findings, Marvin consented to the described sanction and to the entry of findings that he misused approximately $145,000 in funds obtained from investors in a limited partnership that he owned and controlled. The findings stated that Marvin established the limited partnership as a general investment fund and referred to it as a hedge fund; the limited partnership had investors who were Marvin’s long-standing friends/customers. The findings also stated that Marvin maintained the limited partnership’s brokerage account at his member firm and made all of the investment decisions for the fund, which primarily involved stock transactions; Marvin was also the registered representative for the limited partnership’s account and received commissions from trades in the account. The findings also included that the general partner of the limited partnership was another entity Marvin owned and controlled.

FINRA found that under the terms of the limited partnership’s offering memorandum, the limited partnership was required to pay an annual management fee of 1 percent to the other entity Marvin owned and controlled. FINRA also found that there was approximately $1 million invested in the limited partnership; therefore, the other entity was only entitled to an annual management fee of approximately $10,000, but Marvin wired approximately $145,000 more from the limited partnership’s brokerage account to the other entity’s bank account and used those funds to pay his salary and other expenses of the other entity. In addition, FINRA determined that Marvin had no authority to withdraw the additional $145,000 from the limited partnership’s account; Marvin repaid the limited partnership for the excess funds he had withdrawn from its account. (FINRA Case #2010021174501).