Peyton Nelson Jackson, of New York, New York, was fined $20,000.00 and suspended for six months from associating with any Financial Industry Regulatory Authority (FINRA) member firm after consenting to findings that he engaged in unauthorized outside business activities. Letter of Acceptance, Waiver and Consent, No. 2012032095801 (Apr. 28, 2016).
According to the AWC, FINRA launched an investigation into Jackson’s conduct that took place while working for three firms: Alexander Capital, L.P., Legend Securities, Inc., and Dawson James Securities, Inc. The AWC stated that from January 2010 through December 2012, Jackson did not disclose to his firms several outside business activities, and that such activities were unauthorized by such firms. Particularly, Jackson’s failed disclosures consisted of his offerings of commercial marketing, investment banking and relations, and business development work through a company that Jackson apparently controlled.
Jackson reportedly received compensation from another company in connection with his insurance services. The AWC stated that Jackson was a successor trustee for a third entity. In the aforementioned instances, each of which involved an outside business entity, FINRA found that Jackson had violated FINRA Rules, 2010, 3270, as well as NASD Rule 3030.
The AWC further stated that from March 23, 2010 and December 31, 2012, Jackson did not disclose outside brokerage account(s) to his former firms. Jackson apparently maintained this account, in which he had owned and controlled, at another brokerage firm. FINRA found that Jackson’s failure to disclose his outside brokerage accounts was violative of FINRA Rule 2010 and NASD Rule 3040. Jackson was additionally found to have violated FINRA Rule 3040 and 2010, by way of failing to indicate to the FINRA member firm (in which he had his outside brokerage account) that he was affiliated with other FINRA member firm(s).
Public disclosure records reveal that Jackson has been subject to twelve disclosure incidents. On October 24, 1994, Jackson settled a customer dispute for $13,000.00 after the customer claimed churning, unauthorized trading, and unsuitability. On January 16, 2001, Jackson settled a customer dispute for $100,000.00 after the customer claimed unauthorized trading, churning, omissions of material facts, breach of fiduciary duty, fraud, and breach of contract.
On January 7, 2002, Jackson settled a customer dispute for $42,500.00 after the customer claimed unsuitable recommendations. On January 11, 2002, Jackson settled a customer dispute for $150,000.00 after the customer claimed unsuitable advice was provided.
On March 9, 2015, Jackson settled a customer dispute for $3,500.00 after the customer claimed that Jackson over-concentrated the customer’s investments, and committed breach of fiduciary duty. On November 25, 2015, through February 12, 2016, he became subject to six additional pending disputes, where customers are requesting an aggregate of $1,700,000.00 in damages after alleging fraud, unsuitability, negligent misrepresentations, and breach of fiduciary duties.
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