The Financial Industry Regulatory Authority announced that it has barred Kevin Cory from associating with any FINRA member.
According to FINRA, from November 2018 through July 2019, while associated with R. F. Lafferty & Co. Inc., Cory created and distributed two fictitious account statements to two of his former Chapin, Davis customers. The customers, a married couple, invested $500,000 of their retirement funds into a purported investment fund that Cory formed and managed. The advisor used the former customers’ funds to make loans to various small businesses, including businesses owned by Cory or managed by his friends and associates. The small businesses, including those owned by Cory, defaulted on the loans from the fund. The account statements reflected that the customers’ investment in the fund had risen in value when, in fact, the fund no longer existed, and their investment was worthless.
From November 2018 through August 2020, FINRA says Cory also sent 14 text messages to these former customers containing false and misleading information regarding their investment in the fund.
Cory violated FINRA Rules and was barred from associating with any FINRA member in all capacities.
Prior to joining Lafferty or Chapin, Davis, Cory worked for three separate firms from 1995 to 2000.