James Daniel Kent Jr. of San Mateo, California, a stockbroker formerly registered with Emerson Equity LLC, has been fined $5,000.00 and suspended for eight months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity for failing to update his Form U4. Letter of Acceptance Waiver and Consent No. 2021071506202 (July 19, 2022).
According to the AWC, Emerson Equity LLC filed a Uniform Termination Notice on May 26, 2021 (Form U5), indicating that Kent was no longer associated with the firm. As a result, FINRA began its investigation into the allegations that caused his termination. According to the investigation, between August 9, 2020, and April 12, 2021, Kent failed to disclose that he was convicted of a felony as required by FINRA Rules. Specifically, Kent was charged with a felony on August 9, 2020. FINRA Rules required Kent to update his Form U4 within 30 days of the charge. Kent did update his U4 Form on August 11, 2020, but did not disclose the felony charge.
FINRA sent Kent multiple requests for the production of documents and information relating to the allegations. Kent was required to respond to the requests by August 4, 2021. He failed to respond in a timely manner. As a result, Kent violated FINRA Rules 2010 and 8210.
Kent was also disciplined by FINRA in January 2021 regarding his failure to disclose a federal tax lien. Kent was required to disclose any unsatisfied judgments or liens that were levied against him on FINRA’s Uniform Application for Securities Industry Registration or Transfer (Form U4). Kent violated FINRA Rules 2010 and 1122.
Public Disclosure shows that Kent is referenced in four total customer initiated investment related disputes concerning Kent’s conduct while associated with securities broker dealers, including Emerson Equity LLC. On August 14, 1996, a complaint involving Kent’s conduct was settled for $30,000.00 in damages based upon allegations that Kent churned the customer’s account, used margin without authorization, and overconcentrated the customer’s account in stocks when Kent was associated with PaineWebber Incorporated.
Kent is referenced in a customer initiated investment related complaint that was settled on August 25, 1997, for $14,990.00 in damages based upon allegations that Kent made unsuitable transactions in connection with the recommendation and sale of investments when Kent was associated with PaineWebber Incorporated.
On June 23, 2010, different customer complaint involving Kent’s activities in which the customer requested compensatory damages based upon allegations that Kent made unsuitable transactions and misrepresentations concerning variable annuities at Brecek and Young Advisors Inc.
On April 22, 2022, another customer filed an investment related FINRA securities arbitration claim involving Kent’s activities in which the customer requested $600,000.00 in damages based upon alleged breach of contract, breach of fiduciary duty, negligence, and violation of federal securities laws with regard to the recommendation and sale of investments when Kent was associated with Emerson Equity LLC. FINRA Arbitration No. 22-00882.
Kent was discharged by Emerson Equity LLC on May 12, 2021, for allegedly failing to disclose a criminal charge.
