FINRA files for Cease-and-Desist Order Against Westor Capital Group for Misappropriation and Misuse of Customer Funds and Securities

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On behalf of Thomas Costello of Costello Law Group

On January 23, 2013, the Financial Industry Regulatory Authority (FINRA) filed a temporary cease-and-desist order against Westor Capital Group (Westor) and its President, Richard Hans Bach, to immediately stop the further misappropriation and misuse of customer funds and securities. In addition to the cease-and desist order, FINRA has filed a complaint alleging the two failed to allow customers to withdraw account balances or deliver securities, misusing customer securities, failing to maintain physical possession or control of securities, and for operating an unapproved self-clearing business.

The charges stem from investor complaints that Westor refused to allow the investor to withdraw money from their account. In addition, that Westor, acting through Richard Bach, misused 65,000 shares of investors’ fully paid common stock to cover short sales by another investor, without the authority to do so.

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