According to Finra’s BrokerCheck website, Buchanan was previously terminated by Morgan Stanley Smith Barney for engaging in “outside activities” without the firm’s approval. Morgan Stanley would later bring Buchanan to arbitration regarding a breach of promissory notes. That arbitration led to a July 2013 decision against Buchanan awarding Morgan Stanley more than $180,000. Finra subsequently suspended Buchanan from December 2013 to November 2015 for failure to satisfactorily respond to an arbitration decision or request for information.
Laurel Wealth undertook several remedial procedures, uncluding hiring a new chief compliance officer, engaging outside compliance consultants and counsel, and raising restrictions on representatives’ personal trading. The firm also cooperated with the SEC in its investigation, according to BrokerCheck.
As a result, the SEC censured Laurel Wealth Advisors and ordered the firm to pay a $100,000 civil penalty.
The SEC barred Buchanan from associations with any broker-dealer, advisor, transfer agent or ratings association, and forbade him to act as an employee, officer, director or board member of any registered investment company. The SEC also issued a cease-and-desist order to prevent both Buchanan and Laurel Wealth Advisors from engaging in future cherry-picking schemes.
Buchanan told the SEC that he is unable to pay disgorgement, prejudgment interest or a civil penalty, thus the SEC waived all but $40,000 of his penalties and disgorgement, the SEC said.