FINRA Sanctions Broker Peyton Jackson Over Outside Business Activities

shutterstock_177231071The securities lawyers of Gana LLP are investigating customer complaints filed with The Financial Industry Regulatory Authority (FINRA) against broker Peyton Jackson (Jackson).  According to BrokerCheck records Jackson has been subject to at least eleven customer complaints.  The customer complaints against Jackson allege securities law violations that including unsuitable investments, fraud, misrepresentation, negligence, and violations of industry rules among other claims.  Many of the complaints involve equities and private placements.

In addition, in April 2016, FINRA settled a regulatory action against Jackson alleging that he failed to disclose certain outside business activities and an outside brokerage account to his employing brokerage firms. According to FINRA, Jackson failed to disclose in writing to his firms that he offered investment banking, investor relations, commercial marketing, and Eastern Europe business development services through an outside entity that he controlled, received compensation for insurance services from another outside entity, and served as a successor trustee on behalf of a third party outside entity. FINRA also determined that Jackson failed to disclose to his firms the existence of a brokerage account that he opened in the name of an outside business entity owned by and controlled by him.

Brokers have a responsibility treat investors fairly which includes obligations such as making only suitable investments for the client.  In order to make a suitable recommendation the broker must meet certain requirements.  First, there must be reasonable basis for the recommendation the product or security based upon the broker’s investigation and due diligence into the investment’s properties including its benefits, risks, tax consequences, and other relevant factors.  Second, the broker then must match the investment as being appropriate for the customer’s specific investment needs and objectives such as the client’s retirement status, long or short term goals, age, disability, income needs, or any other relevant factor.

The number of events listed on Jackson brokercheck is high relative to his peers.  According to InvestmentNews, only about 12% of financial advisors have any type of disclosure event on their records.  Brokers must publicly disclose certain types of reportable events on their CRD including but not limited to customer complaints.  In addition to disclosing client disputes brokers must divulge IRS tax liens, judgments, and criminal matters.  However, FINRA’s records are not always complete according to a Wall Street Journal story that checked with 26 state regulators and found that at least 38,400 brokers had regulatory or financial red flags such as a personal bankruptcy that showed up in state records but not on BrokerCheck.  More disturbing is the fact that 19,000 out of those 38,400 brokers had spotless BrokerCheck records.

Jackson entered the securities industry in 1989.  From May 2002 until February 2010 Jackson was associated with McKim Capital, Inc.  From January 2010 until April 2011, Jackson was registered with Dawson James Securities, Inc.  From March 2011 until December 2012, Jackson was associated with Legend Securities, Inc.  Finally, from December 2012 until April 2015, Jackson was registered with Alexander Capital, L.P. out of the firm’s New York, New York office location.

The investment fraud attorneys at Gana LLP represent investors who have suffered securities losses due to the mishandling of their accounts.  The majority of these claims may be brought in securities arbitration before FINRA.  Our consultations are free of charge and the firm is only compensated if you recover.