Bentley Edward Blackmon of Little Rock, Arkansas, a stockbroker formerly registered with securities broker dealer, Stephens, has been fined $5,000.00 and suspended for three months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity founded on findings that Blackmon engaged in private securities transactions while he was associated with Stephens. Letter of Acceptance, Waiver, and Consent No. 2020068226001 (March 14, 2022).
According to the AWC, Blackmon engaged in private securities transactions (also known as selling away) with a Stephens customer. Blackmon failed to tell the securities broker dealer about his involvement in the customer’s outside investment affairs.
FINRA states that in March 2020, the customer was introduced by Blackmon to an issuer of a private placement offering. The customer was led to believe that Blackmon was personally investing in the private placement offering. FINRA also states that Blackmon spoke with the customer by phone concerning the offering. In April of 2020, a wire transfer payment had been coordinated by Blackmon, moving the customer’s $195,000.00 in assets into the offering.
In May 2020, Blackmon disclosed his investment to the securities broker dealer. He concealed that he facilitated the securities transaction for the customer. Following this point, Blackmon helped the customer with two more wire transfers, where the customer invested $250,000.00 in the offering.
FINRA states that Blackmon violated FINRA Rules 2010 and 3280 by engaging in private securities transactions.
FINRA Public Disclosure shows that a customer filed an investment related complaint involving Blackmon’s activities where the customer requested compensatory damages supported by accusations of misstatements in regard to common and preferred stock trades executed in the customer’s account during the time that Blackmon was registered with Stephens.
Blackmon was registered with Stephens between February 1, 2003, and October 5, 2020. He was discharged based upon allegations of him selling away.
