Former broker Kevin Richard Graetz has settled a Finra complaint alleging that he failed to report federal and state tax liens against him totaling more than $1 million over almost seven years.
The Financial Industry Regulatory Authority Inc.'s Form U4 requires registered personnel to disclose whether there are any unsatisfied judgments or liens against them. In amendments Mr. Graetz filed to his Form U4 in February 2013, January 2014 and February 2014, he "inaccurately and misleadingly" indicated that he was not subject to any unsatisfied tax liens, according to a Finra order accepting an offer of settlement.
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Mr. Graetz, whose employment with Paulson Investment Co. in New York ended on April 28, updated his Form U4 to disclose his unsatisfied liens in May 2014, only after Finra uncovered the liens during a cycle examination of his firm.
Finra said that Mr. Graetz's "failure to disclose the tax liens was willful in that he knew that he owed significant unpaid taxes and that he was subject to unsatisfied tax liens."
Over the years, the Internal Revenue Service recorded a laundry list of federal tax liens against Mr. Graetz, including liens of more than $43,000 in February 2007; $16,500 in February 2009; $179,000 and $206,000 in August 2009; $370,000 in September 2009; $206,000 and almost $56,000 in September 2010; and almost $96,000 in July 2011. On January 18, 2013, the State of Connecticut recorded a tax lien against Mr. Graetz in the amount of $25,938.
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Finra said Mr. Graetz received notice of each of the state and federal tax liens entered against him.
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As punishment, Finra suspended Mr. Graetz for six months and fined him $10,000.
Mr. Graetz, a resident of New Canaan, Conn., has spent 25 years in the securities industry and joined Paulson in 2013. He previously was affiliated with Roth Capital Partners, Advanced Equities (which has been expelled by Finra), Oppenheimer & Co., Maxim Co., Ryan Beck & Co., H.C. Wainwright & Co., Josephthal & Co., Tucker Anthony, PaineWebber, Rosenkrantz Lyon & Ross and Gruntal & Co.
