Securities Lawyers Blog
The securities lawyers of Gana Weinstein 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.