FINRA Bars Registered Representative for Concealing Outside Activities

A FINRA hearing panel barred a California-based registered representative for participating in private securities transactions and actively concealing outside business activities from his employer, in violation of FINRA Rules 2010 and 3270.

The hearing panel found that the representative formed a private investment company in order to solicit foreign investors in connection with the U.S. government's EB-5 program, which allows certain investors to obtain U.S. residency in exchange for making investments that meet specific requirements. The panel determined that the representative began soliciting investments while still registered as a securities representative with his former employer and lied repeatedly on compliance certifications. He also misled company inspectors during onsite reviews at the representative's office by attesting that he had no outside business activities.

Subject to an appeal to FINRA's National Adjudicatory Council ("NAC") or a review by the NAC, the decision will become final after 45 days.