John Daniel Quinn, of Berkeley Heights, New Jersey, a stockbroker formerly registered with LPL Financial LLC and Valic Financial Advisors Inc., has been fined $10,000.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon findings that he engaged in unapproved outside business activities and private securities transactions. Letter of Acceptance, Waiver, and Consent No. 2020066408902 (December 16, 2021).
According to the AWC, in May of 2019, Quinn created Quinn Wealth Management (QWM) and disclosed this to LPL Financial as an outside business activity. LPL Financial was led to believe from Quinn that QWM was meant for holding real estate and that he would not market this company. Because of this, Quinn’s request to engage in this activity was approved.
In June of 2019, Quinn also sought permission to be a consultant for a marijuana business, Company A. LPL Financial found this to exceed Quinn’s scope of allowable work in his outside business activity and denied his request.
FINRA states that in July of 2019, consulting services were provided by Quinn to Company A despite LPL Financial prohibiting it. Quinn consulted with Company A about their capital needs, reviewed financials, and provided guidance to the company regarding pensions. The AWC states that Quinn received $85,000.00 for activities which LPL Financial disallowed. Quinn did not tell LPL Financial about his consulting work.
The AWC states that Quinn also provided services to Company A when he joined Valic Financial Services. The securities broker dealer was led to believe that Quinn’s involvement would be buying and selling property. Quinn did not indicate that he was providing consulting work to Company A and that the company was not involved in real estate. The AWC states that Quinn received $20,000.00 for his consulting work, which went undisclosed to Valic.
Quinn also indicated in compliance questionnaires that he did not engage in undisclosed outside business activities while registered with LPL Financial and Valic Financial Advisors. He violated FINRA Rules 2010 and 3270 for engaging in undisclosed outside business activities.
FINRA also states that Quinn engaged in private securities transactions. From June of 2019 to September of 2019, six LPL Financial customers had been solicited by Quinn for a purchase of stock issued by Company A. The investors collectively bought $1,247,500.00 in shares.
Quinn arranged for the investors to speak with Company A’s CEO before making purchases. Quinn also helped investors with completing the required forms, including subscription documents. He also helped two of the investors gather funds to make purchases. He obtained 2,540,000 shares in Company A for making these referrals. All the while, Quinn told LPL Financial that he was not selling away. Quinn violated FINRA Rules 2010 and 3280 for this reason.
FINRA Public Disclosure additionally shows that a customer filed an investment related written complaint on April 21, 2021, in which the customer sought $232,400.00 in damages supported by allegations that Quinn sold an unsuitable variable annuity income rider to the customer when he was associated with Ameriprise Financial Services.
Quinn was registered with LPL Financial between May 10, 2019, and November 22, 2019, and registered with Valic Financial Advisors between October 22, 2019, and February 22, 2021.
