Brian Stanley Pearce of Winter Haven Florida a stockbroker formerly registered with FSC Securities Corporation has been fined $5,000.00 and suspended for seven months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity supported by findings that Pearce engaged in private securities transactions without getting approval from FSC Securities Corporation. Letter of Acceptance Waiver and Consent No. 2020065314401 (November 2, 2021).
According to the AWC, between August of 2016 and May of 2017, investors were solicited by Pearce to buy Future Income Payments (FIP LLC) investments. The investors collectively bought $607,730.00 in securities of this company, which was in the business of buying pensions from pensioners and then selling them to investors through pension streams. The AWC states that FIP investors were promised between seven and eight percent returns on their investments. Pearce made commissions of $24,309.00 relating to his FIP securities sales.
The AWC states that Pearce was not allowed to engage in FIP sales because this investment was not offered through FSC Securities Corporation but instead through Pearce in a private transaction that was not disclosed to the firm and not approved by it in writing. The regulator indicated that Pearce concealed his FIP activities from FSC Securities Corporation in violation of FINRA Rules 2010 and 3280.
Pearce has been identified in three customer initiated investment related disputes concerning allegations of his sales practice violations while employed by securities broker dealers, including FSC Securities Corporation, Securities Service Network Inc., and Smith Barney Shearson Inc.
FINRA Public Disclosure shows that in a customer initiated investment related FINRA securities arbitration claim about Pearce, Smith Barney Shearson Inc. was found liable on the customer’s claims of sales practice violations and ordered to pay $33,958.00 in compensatory damages. The Statement of Claim alleges breach of fiduciary duty, unsuitable transactions, omissions, and Smith Barney Shearson’s failure to supervise, resulting in damages to the customer.
Another customer filed an investment related complaint involving Pearce’s activities in which they sought $456,964.00 in damages based upon accusations that Pearce’s poor management led the customer to experience losses in a managed advisory account. The complaint alleges that the customer’s instructions of investing conservatively were not followed by Pearce at Securities Service Network.
On June 21, 2021, a different customer filed an investment related FINRA securities arbitration claim concerning Pearce’s conduct. They requested $200,000.00 in damages founded on allegations that the customer received recommendations from Pearce to invest in Future Income Payments. This investment purchase allegedly occurred away from FSC Securities Corporation. FINRA Arbitration No. 21-01558.
Pearce was registered with FSC Securities Corporation between November 7, 2012, and August 3, 2018. He was registered with Taylor Capital Management Inc. between August 2, 2018, and June 20, 2019, and registered with World Equity Group between June 20, 2019, and May 11, 2021.