Claimant alleges violations of federal securities laws, New York consumer protection act, breach of contract, common law fraud, breach of fiduciary duty, negligence and gross negligence.

$400,000.00

$500,000.00

FINRA

RESPONDENT MCGUIRE FAILED TO RESPOND TO FINRA REQUEST FOR INFORMATION.

LETTER

Bar (Permanent)

All Capacities

Indefinite

10/26/2015

Pursuant to FINRA Rule 9552(h) and in accordance with FINRA's Notice of Suspension and Suspension from Association letters dated July 21, 2015 and August 14, 2015, respectively, on October 26, 2015, McGuire is barred from association with any FINRA member in any capacity. Respondent failed to request termination of his suspension within three months of the date of the Notice of Suspension; therefore, he is automatically barred from association with any FINRA member in any capacity.

FINRA

FINRA BY-LAWS ARTICLE V, SECTION 2(C), FINRA RULES 1122, 2010, 3270, NASD RULES 2110, 3030, 3050: MCGUIRE CONVERTED A TOTAL OF APPROXIMATELY $95,000 FROM A FORMER CUSTOMER BY MISREPRESENTING THAT TWO PURPORTED INVESTMENTS OF $60,000 AND $35,000 WERE FOR THE PURCHASE OF PRODUCTS SIMILAR TO ANNUITIES AND ISSUED BY A COMPANY. IN FACT, THE COMPANY WAS A BUSINESS OWNED AND CONTROLLED BY MCGUIRE AND THE CHECKS PROVIDED BY THE CUSTOMER WERE DEPOSITED IN A BANK ACCOUNT THAT MCGUIRE CONTROLLED. THE FUNDS DEPOSITED WERE USED BY MCGUIRE TO PAY FOR PERSONAL EXPENSES AND TO BENEFIT HIS UNAPPROVED OUTSIDE BUSINESS. WHEN THE CUSTOMER ASKED TO WITHDRAW A PORTION OF HER $95,000 INVESTMENT, MCGUIRE DECLINED TO DO SO ADVISING HER THAT A WITHDRAWAL WOULD RESULT IN THE ASSESSMENT OF SEVERE FINANCIAL PENALTIES. IN RESPONSE TO FINRA INQUIRIES, MCGUIRE PROVIDED TO FINRA COPIES OF TWO DOCUMENTS, EACH ENTITLED LOAN AGREEMENT, IN WHICH HE FORGED OR CAUSED TO BE FORGED THE SIGNATURE OF THE CUSTOMER. MCGUIRE FAILED TO NOTIFY FOUR FINRA-REGULATED BROKER DEALER EMPLOYERS OF HIS ACTIVITIES RELATED TO THREE OUTSIDE BUSINESSES, INCLUDING HIS COMPANY. MCGUIRE ALSO FAILED TO MAKE WRITTEN NOTIFICATION TO VARIOUS FINRA-REGULATED BROKER DEALER EMPLOYERS OF TWO SECURITIES ACCOUNTS HE MAINTAINED - ONE IN HIS OWN NAME AND ONE IN HIS COMPANY'S NAME - AT OTHER BROKERAGE FIRMS. MCGUIRE ALSO WILLFULLY FAILED TO DISCLOSE UNSATISFIED STATE AND FEDERAL TAX LIENS ON HIS FORM U4.

Decision

Bar (Permanent)

All Capacities

Indefinite

12/17/2015

Monetary Penalty other than Fines

$17,696.71

Restitution

$95,000.00

interest; The decision includes a finding that McGuire willfully failed to disclose a material fact on a Form U4, and that under Section 3(a)(39)(f) of the Securities Exchange Act of 1934 and Article III, Section 4 of the FINRA By-Laws, this omission make him subject to a statutory disqualification with respect to association with a member.

EXTENDED HEARING PANEL DECISION RENDERED NOVEMBER 3, 2014 WHEREIN MCGUIRE IS BARRED FROM ASSOCIATION WITH ANY FINRA MEMBER IN ANY CAPACITY, ORDERED TO PAY $95,000, PLUS INTEREST, IN RESTITUTION TO A CUSTOMER'S ESTATE, AND ORDERED TO PAY COSTS IN THE AMOUNT OF $16,500.03. THE SANCTIONS WERE BASED ON FINDINGS THAT MCGUIRE CONVERTED A CUSTOMER'S FUNDS. THE FINDINGS STATED THAT MCGUIRE TOOK $95,000 FROM A CUSTOMER UNDER FALSE PRETENSES, USED THE MONEY FOR HIS OWN PURPOSES, AND THEN, WHEN THE CUSTOMER REQUESTED THE MONEY BACK, REFUSED TO COMPLY WITH HER REQUEST. THE FINDINGS ALSO STATED THAT MCGUIRE FORGED OR CAUSED TO BE FORGED THE CUSTOMER'S SIGNATURES ON LOAN AGREEMENTS HE GENERATED AND COPIED, SUPPLIED TO FINRA, AND USED IN AN EFFORT TO SUPPORT HIS FALSE ASSERTIONS THAT THE CUSTOMER LOANED HIM MONEY. THE FINDINGS ALSO INCLUDED THAT MCGUIRE FAILED TO PROVIDE NOTICE OF THREE OUTSIDE BUSINESS ACTIVITIES TO HIS EMPLOYING FIRMS. FINRA FOUND THAT MCGUIRE FAILED TO INFORM THREE OF HIS FINRA-REGISTERED BROKER-DEALER EMPLOYERS OF THE EXISTENCE OF TWO BROKERAGE ACCOUNTS HELD AWAY FROM THOSE EMPLOYERS AND LIKEWISE FAILED TO INFORM THE BROKER-DEALERS HOLDING HIS ACCOUNTS OF HIS ASSOCIATION WITH HIS EMPLOYERS. FINRA ALSO FOUND THAT MCGUIRE WILLFULLY FAILED TO DISCLOSE TWO STATE TAX WARRANTS AND ONE FEDERAL TAX LIEN ON HIS FORM U4. ON NOVEMBER 28, 2014, MCGUIRE APPEALED THIS MATTER TO THE NATIONAL ADJUDICATORY COUNCIL (NAC) AND THE SANCTIONS ARE NOT IN EFFECT PENDING REVIEW. NAC DECISION RENDERED DECEMBER 17, 2015 WHEREIN THE NAC AFFIRMED THE FINDINGS AND SANCTIONS IMPOSED BY THE HEARING PANEL. THE NAC ORDERED APPEAL COSTS OF $1,196.38. THE BAR IS EFFECTIVE AS OF DECEMBER 17, 2015. THE DECISION IS FINAL AS OF JANUARY 19, 2016.

IN RESPONSE TO THE ALLEGATIONS REGARDING FORGERY AND CONVERSION, RICHARD MCGUIRE PROVIDED ALL THE REQUESTED DOCUMENTATION AND OTHER RECORDS TO FINRA SHOWING THAT THE FUNDS WERE A BONA FIDE LOAN FROM A FAMILY FRIEND (THE CLAIMANT) AND NOT A SECURITIES PRODUCT SALE OR ANY OTHER TYPE OF INVESTMENT TO AN EXISTING CLIENT. THE CLAIMANT ACTUALLY APPROACHED MCGUIRE TO HELP HIM BY LENDING FUNDS AS A FAMILY FRIEND. WHEN MCGUIRE AGREED TO ACCEPT THE LOAN HE INSISTED ON PROTECTING BOTH PARTIES BY ENTERING INTO A FORMAL WRITTEN LOAN AGREEMENT, WHICH HAS BEEN PRODUCED TO FURTHER EVIDENCE NO WRONGDOING BY MCGUIRE. THE CLAIMANT'S CHECKS WERE USED BY MCGUIRE TO PAY DOWN DEBT AND WERE NEVER INTENDED TO BE USED IN A SECURITIES OR INVESTMENT TRANSACTION. THIS PERSONAL LOAN FROM THE CLAIMANT IS PAYABLE BACK TO THE CLAIMANT UNDER THE TERMS OF THE LOAN AGREEMENT AND WITH INTEREST. CLAIMANT'S ALLEGATIONS WERE MADE AFTER A FALLING OUT BETWEEN THEM THAT IS UNRELATED TO ANY INVESTMENT-RELATED MATTER, AFTER A FRIENDSHIP FOR OVER TWO YEARS AFTER THE PERSONAL LOAN WAS MADE. MCGUIRE'S OUTSIDE BUSINESS ACTIVITIES WERE ACCURATELY DISCLOSED TO HIS REGISTERED PRINCIPAL MANAGERS, WHO APPARENTLY DID NOT ARRANGE FOR THEM TO BE PROCESSED ON MCGUIRE'S CRD RECORDS. CREDIBLE DOCUMENTATION TO EVIDENCE THAT THESE DISCLOSURES BY MCGUIRE WERE MADE HAS BEEN PROVIDED TO FINRA. MCGUIRE DISCLOSED THE OUTSIDE BROKERAGE ACCOUNT TO HIS REGISTERED PRINCIPAL MANAGERS, WHO APPARENTLY DID NOT CREATE OR MAINTAIN THE APPROPRIATE RECORDS AS REQUIRED BY FINRA. MCGUIRE DILIGENTLY DISCLOSED HIS TAX LIENS AND PROVIDED THE PROOF OF TIMELY PAYMENT / RESOLUTION. MCGUIRE HAS ENGAGED COMPETENT LEGAL COUNSEL AND IS IN THE PROCESS OF RESPONDING TO THESE ALLEGATIONS AND SHOWING THAT THEY ARE ALL WITHOUT ANY MERIT. UPON PROVING THESE ALLEGATIONS TO BE FALSE AND MISLEADING, MCGUIRE WILL SEEK THE EXPUNGEMENT OF THIS ERRONEOUS INFORMATION FROM HIS EMPLOYMENT RECORDS.

$2,044.00

Tax

MCGUIRE HAS ENTERED INTO AND IS CURRENT WITH A PAYMENT PLAN THAT WILL RESOLVE THIS MATTER IN THE VERY NEAR FUTURE.

AMERITAS INVESTMENT CORP

Discharged

DISCHARGED - AFTER VERBAL NOTIFICATION OF TERMINATION FOR CAUSE DUE TO FAILURE TO FOLLOW POLICY AND PROCEDURES IN REGARD TO REPORTING OUTSIDE BUSINESS ACTIVITIES, RR SUBMITTED VOLUNTARY RESIGNATION.

MCGUIRE HAS ENGAGED COMPETENT COUNSEL AND IS IN PROCESS OF PROVING THAT THESE ALLEGATIONS ARE INCORRECT. UPON PROVING THE ALLEGATIONS FALSE, MCGUIRE WILL SEEK THE EXPUNGEMENT OF THESE UNTRUE AND MISLEADING DICLOSURES.

$21,167.00

Tax

MCGUIRE IS CURRENT ON AN AGREED UPON PAYMENT PLAN THAT WILL RESOLVE THIS MATTER IN THE IMMEDIATE FUTURE.

CUSTOMER ALLEGES THE REPRESENTATIVE SIGNED HIS NAME TO THE DECEMBER 2004 APPLICATION THAT CONVERTED HIS TERM INSURANCE RIDER TO A NON-VARIABLE LIFE INSURANCE POLICY. NO SPECIFIC COMPENSATORY DAMAGES WERE ALLEGED.

TFS SECURITIES RECEIVED RESPONSE FROM REPRESENTATIVE. REPRESENTATIVE CLAIMS THE ALLEGATIONS AGAINST HIM ARE FALSE. NEW ENGLAND SECURITIES RETAINED ALL CLIENT FILES. REPRESENTATIVE HAS NO DOCUMENTATION. REPRESENTATIVE STATES INSURANCE POLICIES WERE CONVERTED BY A TEAM FORMED AT NEW ENGLAND FINANCIAL. HE WAS NOT THE ONLY REPRESENTATIVE WHO WORKED WITH [CUSTOMER].