November 4, 2016
On October 14, 2016, the Securities Exchange Commission (SEC) publicized an Order Instituting Administrative Proceedings Pursuant to Section 15(b) of the Securities Exchange Act of 1934 and Section 203(f) of the Investment Advisers Act of 1940, Making Findings, and Imposing Remedial Sanctions (Order) announcing their acceptance of broker Keith Rogers’ Offer of Settlement for violations of securities industry rules. Rogers was a registered representative at G.L.S. & Associates, Inc. located in Huntsville, Alabama from January 2006 through January 2013.
According to the Order, the Alabama Securities Commission issued an administrative cease-and-desist order (C&D) against Rogers in July 2014. The C&D concluded that between 2009 and 2014, Rogers solicited and sold unregistered securities, conducted unauthorized fund transfers, and converted client funds for his personal use. The C&D barred Rogers from any activity in the securities industry in Alabama.
On March 4, 2016, Rogers entered a guilty plea in the Circuit Court of Madison County, Alabama to one count of fraud. The criminal indictment to which Rogers’ pled guilty alleged, among other things, that he “misappropriated over $2.5 million from investors in a private entity Rogers created, and misrepresented to investors that their funds would be placed into legitimate investment programs and would be used to purchase securities positions such as stocks and bonds.” On May 18, 2016, Rogers was sentenced to ten years in prison and ordered to pay $1,716,723.86 as restitution and to serve three years with the balance suspended for five years of probation. Rogers is permanently barred by the Financial Industry Regulatory Authority (FINRA) and SEC from acting as a broker or otherwise associating with firms that sell securities or provide investment advice to the public.