Jeffrey Wayne Davidson of Austin, Texas, a stockbroker registered with Equitable Advisors LLC, has been fined $15,000.00 and suspended for 21 months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity because Davidson engaged in private securities transactions or selling away. Letter of Acceptance, Waiver, and Consent No. 2022073948401 (February 16, 2024).
According to the AWC, Davidson, while associated with Equitable Advisors LLC, participated in a private offering of securities from May of 2021 through January of 2022. This offering raised $10,210,000.00 for a fitness company, Company A, which Davidson founded and owned. Davidson’s involvement included hiring a placement agent, presenting business plans to investors, approving private placement memorandums, and negotiating terms. The offering brought in 18 investors, including two of Davidson’s customers at Equitable Advisors. The AWC stated that Davidson and his co-owner sold part of their ownership in Company A for approximately $2,400,000.00.
At the time of these transactions, Equitable Advisors LLC’s policies required Davidson to notify the securities broker dealer in writing and get written permission before engaging in private securities transactions. Davidson’s failure to comply with these policies and his participation in the transactions without Equitable Advisor’s approval resulted in a violation of FINRA Rules 2010 and 3280.
Davidson was associated with Equitable Advisors LLC in Austin, Texas from September 25, 2002, to January 31, 2022. Davidson was also registered with Purshe Kaplan Sterling Investments in Austin, Texas from February 4, 2022, to March 7, 2023.
