The Financial Industry Regulatory Authority has barred Bradley Mascho for refusing to appear for on-the-record testimony relating to its investigation of fraud, undisclosed outside business activities, and private securities transactions. Last month, Mascho was terminated by Western International Securities Inc., where he was registered as a general securities representative since 2009.
Although details of the investigation were not disclosed in FINRA’s letter of acceptance, waiver and consent, the regulators said that it was investigating Mascho for “potential serious violations.”
Mascho, the onetime chief financial officer of Dawn Bennett’s DJB Holdings LLC, was charged by the Securities and Exchange Commission last month with aiding and abetting an offering fraud in connection with the sale of more than $20 million in convertible and promissory notes. The U.S. Attorney’s Office for the District of Maryland also filed parallel criminal charges against Mascho.
Bennett, a former Western investment advisor and radio talk show host, made headlines over the summer when federal investigators revealed her lavish lifestyle and penchant for using witchcraft to silence those involved in the investigation.
In August 2017, the SEC charged Bennett and DJB Holdings with fraud in connection with the sale of notes backed by the company, alleging that she repeatedly misled investors regarding the financial condition of her company and her plan to divert millions of dollars in investor funds to personal use.
The SEC amended its complaint to add Mascho as a defendant, alleging that he aided and abetted Bennett’s fraud by various means, including preparing false financial statements and related offering materials, lying to regulators and to his employer regarding his knowledge of and role in the sale of notes, facilitating Bennett’s efforts to target his firm’s brokerage customers, and attempting to disguise certain note sales by creating new, “backdated” notes and false affidavits misrepresenting the details of the note offering.
Refusing to appear for a FINRA hearing is a violation of FINRA rules 8210 and 2010.