Former broker Harry Datys, also known as Harry Seth Datys, allegedly offered and sold 24 promissory notes issued by WestPark Capital‘s parent company, WestPark Financial Services to 14 customers in connection with two securities offerings, according to FINRA’s Letter of Acceptance, Waiver and Consent (AWC), under review by attorney Alan Rosca.
Investor rights attorney Alan Rosca of the Rosca Scarlato LLC law firm is investigating broker Harry Datys and the circumstances surrounding the alleged broker misconduct. Investors who believe they may have lost money in activity related to Harry Seth Datys‘ alleged offering of promissory notes are encouraged to contact attorney Alan Rosca with any useful information or for a free, no obligation discussion about their recovery options. Call 888-998-0530, via email at arosca@rscounsel.law, or through the contact form on this webpage.
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FINRA Suspended and Fined Datys for Offering and Selling Promissory Notes in Connection with Two Securities Offerings
Between January 2012 and February 2016, in connection with two securities offerings, Harry Datys allegedly solicited the sale of 24 promissory notes issued by the firm’s parent, WestPark Financial Services, to 14 customers, the AWC reports. Datys allegedly raised a total of $2,713,000 and received $183,000 in commissions. The securities offerings were structured as loans to the firm’s parent in exchange for five-year promissory notes that could be extended twice, for one-year periods, at the parent’s discretion.
According to the AWC, former broker Harry Datys allegedly did not conduct a reasonable review of offering documents received from the firm’s CEO. The documents reportedly included the subscription agreement and financial statements that contained red flags about WestPark Financials‘ ability to repay the notes. In addition, Datys allegedly did not conduct reasonable due diligence on the offerings and failed to understand and disclose conflicts of interest that presented risks to potential investors.
Datys allegedly emailed customers a false historical analysis that he obtained from the CEO and negligently misrepresented the potential return on promissory notes, without disclosing the information was hypothetical, rather than historical, the AWC reports. Harry S. Datys also allegedly provided investors with offering documents that contained material misrepresentations and omitted material adverse facts.
As reported on the AWC, shortly after customers invested with Harry Datys, they inquired about the status of their investments because they did not receive the equity they expected from the firm’s deal. Datys allegedly did not disclose to noteholders that they were not entitled to any equity from the firm, but he continued to tell noteholders that they would receive an equity soon.
Datys alleged misrepresentations and omissions were in violation of FINRA Rules and as a result, he received a 15-month suspension from associating with any FINRA member in any capacity and a $20,000 fine.
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Datys Was the Subject of Multiple Customer Dispute Disclosures
Between 1998 and 2017, former broker Harry Datys was involved ineight customer dispute disclosures reporetd as settled for amounts ranging between $4,500 to $400,000 according to his FINRA Brokercheck page.
A customer who filed a dispute in February 2017 alleging excessive and unsuitable trading without diversification and false & misleading statements, requested $250,000 in alleged damages. The customer received a settlement of $6,000.
Another customer who filed a dispute in April 2016 alleging various acts of negligence, breach of fiduciary duty, lack of suitability and failure to supervise. The customer requested $200,000 for the alleged damages and received a settlement of $50,000.
In May 2014, a customer filed a dispute alleging misrepresentation, unsuitable investments, and unauthorized transactions requested $500,000 for the alleged damages and received a settlement of $400,000. In September 2011, another customer filed a dispute alleging unauthorized trading. The customer requested $100,000 for the alleged damages and received a settlement of $52,500.
In December 2003, a customer filed a dispute alleging excessive and unauthorized trading, excessive commissions, misrepresentations, unauthorized use of margin, unsuitable investments, and failure to follow instructions. The customer requested $5,809.04 for the alleged damages and received a settlement of $4,500.
In October 1999 and October 1998, two customers filed a dispute involving Harry S. Datys. One customer alleging a sale was not entered for data trend and requested $142,720 for the alleged damages. The customer received a settlement of $52,500. A second customer alleging unauthorized and unsuitable investments, resulting in losses. The customer requested $325,000 for the alleged damages and received a settlement of $45,000.
There is one customer dispute disclosure shown as filed on March 29, 2006 alleging a stock was supposed to be listed on AMEX but there were no assurances made.
Investors who are concerned they may have suffered a loss due to former broker Harry Datys‘ alleged broker misconduct are encouraged to contact attorney Alan Rosca for a free consultation or discussion of recovery options. Call 888-998-0530, via email at arosca@rscounsel.law, or through the contact form on this page.
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Datys Was the Subject of State Investigations for Securities Fraud and Unlicensed Sale of Securities
According to the Datys‘ FINRA Brokercheck page, in April 2014, the New Jersey Bureau of Securities initiated a regulatory disclosure alleging Harry Datys actively conducted business in accounts of New Jersey residents after his registration was revoked. Datys allegedly accepted numerous orders for securities trades in accounts of up to four New Jersey residents between May 2008 and August 2012 even though he was no longer registered with WestPark.
In order to continue to doing business with the four New Jersey residents, Harry Seth Datys allegedly advised his clients to change their principal address to New York. Datys received a civil and administrative fine in the amount of $15,000, as reported on his FINRA Brokercheck page.
The New Jersey Bureau of Securities initiated another regulatory disclosure on May 15, 2008 alleging Harry Datys violated his supervisory agreement by failing to inform the bureau of new disclosure in Colorado. Datys received a monetary fine in the amount of $6,000, as reported on his FINRA Brokercheck page. In May 2006, the Colorado Division of Securities initiated a regulatory disclosure alleging Datys conducted unlicensed offer and sale of securities and participated in securities fraud. Datys received a sanction and denial of registration in Colorado.
While registered with Joseph Stevens & Company in 2002, former broker Harry Datys voluntarily resigned from the company due to three client complaints alleging wrongful acts of unauthorized transaction according to hiss FINRA Brokercheck page.
In addition, there are four tax liens between May 2018 and October 2019 in the amounts of $33K, $230.7K, $26.4K, and $39.4K on Datys FINRA Brokercheck page.
Finally, it is important to note that, as of the date of this article, there has not been a finding of liability as to the complaints or allegations mentioned in this article, unless otherwise indicated. Any reader should also read the original sources hyperlinked in this blog for accuracy, including any BrokerCheck report and/or record of any disciplinary or regulatory action. Those sources are incorporated by reference into the text of this blog, and are the governing materials in case of any inconsistencies or typos in this blog.
Potential Recovery Options for Harry Seth Datys Investors
Investor rights attorneys at Rosca Scarlato have decades of combined experience advocating on behalf of clients who have lost money after working with brokers who misused their funds, including representing investors who suffered losses after investing in promissory notes. The firm takes most cases of this type on a contingency fee basis and advances the case costs, and only gets paid for their fees and costs out of money recovered for clients.
Investor rights attorney Alan Rosca is investigating the allegations involving broker misconduct of Harry Seth Datys and is prepared to pursue legal remedies to recover compensation on behalf of investors who believe they have suffered investment losses.
Concerned Harry Datys investors are encouraged to contact Rosca Scarlato for a free, no-obligation consultation to review their case and be informed about their rights. You should reach out to attorney Alan Rosca and his colleagues at 888-998-0530, by email at arosca@rscounsel.law, or through the contact form on this page.
