Sign of the Financial Industry Regulatory Authority

Garrett Scott Neubart of New York New York a stockbroker formerly registered with Deutsche Bank Securities Inc. has been suspended for two months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity founded on findings that Neubart took part in outside business activities that were not disclosed or otherwise approved by Deutsche Bank Securities. Letter of Acceptance Waiver and Consent No. 2019062347901 (Aug. 23, 2021).

According to the AWC, between September of 2017 and November of 2018, during the time that Neubart was associated with Deutsche Bank, he was required under firm policy to provide written notice regarding outside business activities. Stockbrokers were also required to obtain authorization by the firm before taking part in the activities.

Neubart was an Institutional Equity Sales Group Director at Deutsche Bank Securities which involved him servicing the accounts of institutional clients. His job did not involve him making client referrals. The AWC stated that from September of 2017 to November of 2018, Neubart arranged meetings and spoke with clients about an artificial intelligence (AI) company’s services and products. He sent clients marketing products and other information about the company. For this work he received incentive units in that AI company which enabled him to buy shares for a certain price when he wanted.

Throughout this period there was no written notice provided to Deutsche Bank Securities by Neubart regarding the AI company and his outside activities relating to that company’s products and services. FINRA noted that Neubart verbally requested authorization to engage in these activities but had been told by Deutsche Bank Securities’ compliance department that he could not take part in them and could not receive any form of compensation relating to those activities.

According to the AWC, the incentive units were mischaracterized by Neubart when he identified to the securities broker dealer in December of 2017 that he maintained a passive investment in the AI company. The regulator also noted that Neubart was required to complete compliance attestations for 2017 and 2018. In submitting those attestations, he represented to Deutsche Bank Securities that he made disclosures of his outside business activities. FINRA determined that Neubart violated Rules 2010 and 3270.

Neubart has been registered with Deutsche Bank Securities since April 28, 2006.