Jason H. LeBlanc, of Fulshear, Texas, a stockbroker formerly registered with Girard Securities, Inc., has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that he sold away from his firm, engaged in outside business activities without apprising his firm, misused customers’ monies, and did not fully cooperate with FINRA’s investigation into allegations of his wrongdoing. Letter of Acceptance, Waiver and Consent, No. 2015047168101 (June 29, 2017).
According to the AWC, in October of 2014, an independent activity questionnaire had been furnished by LeBlanc to his firm, wherein he failed to apprise his firm of his involvement in a money lending entity, as well as his involvement in companies DL, MS and HGJH. Apparently, DL was an entity that LeBlanc’s wife owned, in which LeBlanc operated the entity’s business and financial affairs. In 2012, LeBlanc purportedly effected the sale of $80,000.00 worth of promissory notes to four of the firm’s customers for purposes of utilizing the customers’ funds to invest in real estate.
The AWC stated that MS was another entity that LeBlanc’s spouse owned, in which LeBlanc was responsible for running the business and accumulating $113,000.00 from four of the firm’s customers in 2014 to pool funds for another real estate venture. LeBlanc also reportedly assisted MS between April of 2014 and September of 2014, where he effected the sale of $346,218.00 worth of promissory notes.
Further, LeBlanc created a limited liability company, HGJH, in April of 2014, where he set the company up and handled its financial affairs. Partnership interests of AGC, an entity that HGJH was seventy-four percent owner of, were subsequently sold to seven Girard customers from March of 2014 to January of 2015.
According to the AWC, LeBlanc made securities recommendations to customers despite claiming not to have done so when questioned by Girard Securities. His involvement in the money lending entity, DL, MS and HGJH consisted of outside business activities that LeBlanc failed to convey to his firm; conduct violative of FINRA Rules 2010 and 3170. FINRA also found that LeBlanc’s sales of promissory notes constituted securities transactions. Since LeBlanc evidently failed to apprise Girard Securities about his role in the transactions or compensation he expected to derive from his efforts, FINRA found that LeBlanc sold away from his firm. Consequently, FINRA found LeBlanc’s conduct to be violative of FINRA Rule 2010 and FINRA Rules 3280, as well as NASD Rule 3040.
Moreover, FINRA noted that LeBlanc misused customers’ funds. Specifically, he retrieved $23,000.00 from customer MG in February of 2015, wherein the customer’s funds were utilized for purposes of a real estate investment despite LeBlanc having made the customer believe that her funds would be invested elsewhere. Additionally, the AWC stated that LeBlanc, via his control of twenty-five business banking accounts from January of 2012 and September of 2015, commingled funds of customers to pay off his personal expenses and other bills of companies he controlled. FINRA found that LeBlanc’s conduct in this regard was violative of FINRA Rules 2010 and 2150.
According to the AWC, in December of 2016, LeBlanc was prompted by FINRA staff to provide information and documentation contained within QuickBooks in regard to LeBlanc’s transactions involving DL and MS, as part of FINRA’s investigation into allegations of his wrongdoing. LeBlanc reportedly neglected to provide FINRA with information about DL as requested, despite claiming to FINRA staff that he maintained the data on the company. FINRA found that LeBlanc’s failure to cooperate in this regard was violative of FINRA Rules 2010 and 8210.
FINRA Public Disclosure reveals that LeBlanc has also been identified in three customer initiated investment related disputes containing allegations of his misconduct while employed with Stanford Group Company. Specifically, on August 31, 2010, a customer filed an investment related written complaint involving LeBlanc’s conduct, in which the customer requested $59,878.00 in damages based upon allegations against LeBlanc of misrepresentations in regard to the customer’s certificate of deposit purchases.
On May 6, 2011, another customer brought an investment related claim, wherein the customer sought $1,100,000.00 in damages founded on allegations of LeBlanc’s sales practice violations in reference to the customer’s certificate of deposit purchases. Moreover, on August 28, 2012, a customer filed an investment related written complaint regarding LeBlanc’s activities, where the customer requested $135,267.78 in damages based upon allegations that he misrepresented the customer’s account information to make it appear as though the customer was accredited in order for the customer’s certificate of deposit purchase to be completed.
LeBlanc’s registration with Girard Securities, Inc. was terminated on September 23, 2015, based upon allegations of his misconduct concerning outside business activities.
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