Jason Kemble Adams of Atlanta, Georgia, a stockbroker registered with JP Morgan Securities LLC, has been fined $5,000.00 and suspended for three months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity because Adams engaged in an undisclosed outside business activity. Letter of Acceptance, Waiver, and Consent No. 2023078823301 (June 20, 2023).
According to the AWC, between December of 2020 and June of 2021, the rules at JP Morgan Securities insisted that stockbrokers get the company’s written consent before starting any separate business activities. Similarly, Between June and July of 2021, Morgan Stanley’s rules also demanded that its registered members to acquire the company’s written permission before initiating any outside business activities.
In December of 2020, Adams set up a limited liability company headquartered in Wyoming, offering paid investment-related content. Adams was sole owner of this LLC and managed its daily operations. He secured an EIN and bank account for the company and took care of payments on behalf of the company. He also dealt with interactions with suppliers and hired two people to service the company’s paying customers. Between April of 2021 and July of 2021, Adams made $77,500.00 through his work in the LLC.
Adams did not give J.P. Morgan Securities notice before he started his outside activities from December of 2020 to June of 2021. He also didn’t inform Morgan Stanley in writing before starting those activities between June of 2021 and July of 2021. Therefore, Adams violated FINRA Rules 2010 and 3270.
This is not the first time that Adams has been the subject of a regulatory action concerning Adams’ conduct in the securities industry. Public Disclosure shows that Adams has been sanctioned by the state of Missouri because Adams engaged in unauthorized activities relating to investment advice. Consent Order No. AP-22-06 (March 11, 2022).
Adams was also referenced in a customer initiated investment related civil action that was settled for $10,000.00 in damages based upon allegations that Adams breached a contract, breached his fiduciary duties, was negligent, committed forgery, and converted funds in connection with the sale of investments during the time that Adams was associated with The Robinson Humphrey Company Inc. Civil Action No. E-43310 (April 1, 1996).
Adams was associated with JP Morgan Securities LLC as a stockbroker from July 30, 2009, to June 15, 2021.
