The law firm of Oakes & Fosher is currently investigating the possible misconduct of former securities broker Arthur Meunier. According to his publicly available FINRA BrokerCheck report, Arthur Meunier has been the subject of a FINRA sanction.
Arthur Meunier was a New York based securities broker. He worked in the securities industry for five years. During his career, he was registered with three different securities firms. He is no longer working as a registered securities broker in any fashion.
His Registrations
- Goldman Sachs & Co. (2010-2012)
- White Bay PT (2012-2013)
- Morgan Stanley (2013-2016)
The Allegations
Arthur Meunier was sanctioned by FINRA in April 2018. The findings in this matter state that he had been engaging in an outside business activity involving blockchain technology. Meunier’s member firm had supervisory procedures in place that required all of the firm’s employees to request, and then receive, approval from the firm before they engage in any outside business dealings. These supervisory procedures also dictated that employees must keep the information regarding their outside business dealing current, and that they were to report any changes to the firm. The findings go on to state that Arthur Meunier invested around $80,000 dollars of his money to develop the blockchain technology. He created a website, a social media profile, and even created a team of advisors. He published two position papers describing the blockchain technology and its application as a self-amending crypto-currency. These papers were published under the pseudonym L.M. Goodman. The website and social media profile were also launched under this name. Arthur Meunier presented the business plan to individual and institutional investors. Four of the investors that he pitched the business plan to were already clients of his member firm.
FINRA’s findings also state that Arthur Meunier never once told his member firm that he was taking part in this outside business. Him using the pseudonym completely concealed his involvement with blockchain technology from his member firm. He even falsified his answers on two firm questionnaires by claiming that he had disclosed all of his outside business activities to the firm. FINRA’s findings go on to state that this business plan created by Meunier did not provide a balanced presentation and sound basis for evaluating an investment in the technology. The plan did not discuss the circumstances in which the blockchain technology might not realize the revenues that were projected in the plan. The plan only focused on the positives about the product and did not adequately disclose the possible risks with the investments. The plan also contained very “optimistic” predictions of the company’s performance even while the blockchain technology was still developing and the company had no revenue. The business plan was presenting a possible future of the product from its current state, when really it was a possible future if the investors chose to invest and blockchain raised the necessary working capital.
As stated by the findings, Arthur Meunier failed to disclose his involvement in the blockchain technology to his member firm. The business plan he created and distributed to prospective investors was misleading and failed to adequately disclose the risks of investing with that security. For his actions, Arthur Meunier was fined $20,000. He was also suspended by FINRA from acting as a securities broker in any fashion for a period of two years.
Oakes & Fosher Can Help
Many investors are unaware of the legal recourse available to them after losing money due to securities broker fraud and/or negligence. The truth is that investors who have lost money in this fashion may actually be entitled to damages.
Oakes & Fosher dedicates its entire legal practice to helping investors across the nation. If you, or someone you know, have lost money investing with Arthur Meunier, please contact Oakes & Fosher for a free and private consultation. We work on a contingency basis, which means there are no fees charged unless we collect for you.
