Jason Barrett Lane of New York New York a stockbroker formerly registered with Wells Fargo Clearing Services LLC has been fined $5,000.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon findings that Lane engaged in unapproved outside business activities during the time that he was associated with Wells Fargo Clearing Services LLC. Letter of Acceptance Waiver and Consent No. 2017056005701 (Apr. 10, 2019).
According to the AWC, in November of 2012, an outside business activity had been undertaken by Lane involving the founding of Agriplas LLC. Evidently, Lane informed Wells Fargo Clearing Services that he was involved with Agriplas; however, he merely detailed his role as advising Agriplas’ management about the ideal way in which crop yield enhancement devices could be created and sold. The AWC stated that Lane’s role, as described to Wells Fargo Clearing Services, was approved conditioned on there being no solicitation by him of the company’s investments. Nevertheless, between June of 2013 to December of 2013, Lane set up and took part in meetings with prospective Agriplas investors. The AWC stated that contrary to Wells Fargo’s policies, the securities broker dealer was not provided information from Lane about his involvement with the investors.
The AWC stated that another outside business activity had been undertaken by Lane involving Atlas Agriculture Systems Inc. – a company which had been created and controlled by Lane in his capacity of Chief Executive Officer. Evidently, Lane failed to fully apprise Wells Fargo Clearing Services about his involvement with this company. The AWC further stated that Lane tried accumulating capital for Atlas Agriculture Systems Inc. without providing this information to Wells Fargo Clearing Services. Critically, Lane was provided authorization from the securities broker dealer to be involved with Atlas Agriculture Systems conditioned on Lane not soliciting Atlas’ investments. Despite Wells Fargo Clearing Services’ restrictions, Lane still tried to accumulate $4,000,000.00 in capital for Atlas Agriculture Systems.
According to the AWC, in July of 2016, a third outside business activity was pursued by Lane which concerned HydroNOx Inc. – an entity which Lane created and controlled. FINRA indicated that Lane notified Wells Fargo about HydroNOx Inc. six months after forming the company. At this time, Lane reported that he was the Chief Executive Officer of HydroNOx Inc. Evidently, Lane’s request to be involved in HydroNOx Inc. was denied by Wells Fargo. Yet, the firm’s denial did not stop Lane from continuing to be involved with HydroNOx Inc. for five additional months. During those five months, Lane reportedly assisted in the preparation of presentations for prospective HydroNOx Inc. investors. Additionally, a plan to raise capital for HydroNOx Inc. had been drafted by Lane without Wells Fargo’s knowledge.
Ultimately, in 2017, Lane’s true involvement in the outside business activities had been discovered by Wells Fargo. Consequently, the firm discharged Lane on October 18, 2017 based upon accusations of his failure to comply with the firm’s directives relating to outside business activities. FINRA found Lane’s failure to fully disclose his outside business activities to be violative of FINRA Rules 2010 and 3270.
