James Cornelius Bylenga of Portage Michigan a stockstockbroker formerly employed by LPL Financial LLC has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based on findings that he failed to comply in FINRA’s investigation into Bylenga’s possible loan arrangements with customers of LPL Financial LLC. Letter of Acceptance Waiver and Consent No. 2018060282201 (Apr. 5, 2019).
According to the AWC, Bylenga was registered with LPL Financial LLC in June of 2016; however, he was terminated by August 7, 2018 supported by accusations of his suspicious advisory structure. Evidently, FINRA was later notified by LPL financial LLC through a Form U5 amendment that an internal inquiry had been made by the firm in September of 2018 to assess if customers of the firm loaned funds to Bylenga during the time that Bylenga was employed by LPL Financial.
Apparently, in the month or so that followed, an investigation had been launched by FINRA into Bylenga’s activities with some of those customers. In particular, the AWC stated that on November 7, 2018, a request had been made by FINRA personnel under Rule 8210 which called upon Bylenga to provide documentation and information to FINRA concerning the activities referenced by LPL Financial LLC in its explanation of Bylenga’s termination.
The AWC stated that Bylenga’s counsel eventually corresponded with FINRA personnel. However, it was made clear to FINRA by the conversation with Bylenga’s counsel, and by way of the AWC, that Bylenga knew about FINRA’s request for his information and documentation and that he would not be handing over anything to the regulator. FINRA found that Bylenga’s refusal to furnish the documents and information was violative of FINRA Rules 2010 and 8210.
This is not the first time that Bylenga has been sanctioned by a securities regulator. In particular, Bylenga was fined $3,000.00 and censured by National Association of Securities Dealers based upon findings that Bylenga sold municipal securities to customers at unfair or unreasonable prices during the time that he was associated with Centennial Securities Co. Case No. CHI-1199-AWC.
Moreover, FINRA Public Disclosure confirms that on February 11, 2019, a customer initiated investment related complaint concerning Bylenga’s activities was resolved for $210,000.00 in damages founded on allegations that Bylenga received unauthorized loans from the customers while Bylenga was associated with LPL Financial LLC.
