FINRA: Broker Barred After Investing $2M Without Firm’s Approval

The Financial Industry Regulatory Authority barred an ex-broker who was affiliated with Momentum Independent Network after he participated in 19 private securities transactions involving promissory notes totaling $2 million between about February 2018 and August 2022 without first getting his firm’s approval.

Why it matters: Momentum is an affiliate of Hilltop Securities, a national full-service RIA and municipal investment bank, headquartered in Dallas with offices across the U.S. Barring a broker is the toughest sanction in FINRA’s arsenal.

What to know: Momentum discharged Leslie D. Jackson in January 2023, after 31 years with the firm, for violating firm policy, according to the FINRA letter of acceptance, waiver and consent he signed Sept. 14. A lawyer for FINRA signed the letter Tuesday.

Jackson also didn’t disclose that he received periodic payments from the issuers in amounts equal to 3% of each investment each year, paid monthly, FINRA said.

Five people were involved in the securities transactions: one of Jackson’s family members ($1.475 million worth of promissory notes), Jackson himself ($500,000 worth) and three Momentum clients (amounts not specified).

As a result of his actions, Jackson violated FINRA Rules 3280 and 2010, the regulator said.

Looking ahead: Jackson is barred from associating with any FINRA member in any capacity. The sanctions imposed in an AWC letter become effective on a date set by FINRA. A bar or expulsion becomes effective upon approval or acceptance of the AWC letter.


(This news/press release has not been altered by, apart from the headline, and has been obtained from a syndicated source:-