Jon Lewis Sugick of Detroit Michigan a stockbroker formerly registered with NYLife Securities LLC has been fined $5,000.00 and suspended for two months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that he engaged in undisclosed outside business activities while associated with NYLife. Letter of Acceptance Waiver and Consent No. 2016051184601 (July 26, 2018).
According to the AWC, between April of 2015 and August of 2016, two outside business activities had been pursued by Sugick despite Sugick’s failure to provide NYLife with required written notification.
The AWC stated that In the first instance, in April of 2015, a limited liability company had been created by Sugick that he planned to utilize for the trading of commodities. Sugick apparently listed himself as chief executive officer of the company. The AWC indicated that written notice of the outside business activity was not provided to NYLife by Sugick until six months after the company had been created by Sugick. Critically, Sugick had requested to engage in the outside business activity but that request was denied by the company.
The AWC stated that Sugick was then informed by NYLife that the company either needed to be dissolved by Sugick, otherwise Sugick was required to relinquish his stake in his company. Evidently; however, Sugick ignored the instructions of the firm; he continued to serve as the chief executive officer of his company while employed by NYLilfe.
The AWC revealed that in the second instance, between June of 2015 and September of 2015, eleven individuals, nine of which included customers of NYLife, had been referred by Sugick to a commodities trading adviser. Apparently, Sugick was provided referral fees estimated at $11,000.00 as a result. The AWC revealed that substantial losses were incurred by those individuals who invested funds with the commodities trading advisor. Sugick reportedly failed to furnish written notification to NYLife concerning his outside business activity in that regard.
Moreover, the annual compliance questionnaire that NYLife administered called upon Sugick to disclose any and all outside business activities. Sugick’s November 2015 attestation was evidently inaccurate in this respect. FINRA found that Sugick’s conduct was violative of FINRA Rules 2010 and 3270.
FINRA Public Disclosure reveals that a customer initiated investment related arbitration claim involving Sugick’s conduct was settled for $80,000.00 in damages founded on allegations that unbeknownst to customers, a commodity trading account had been established, wherein the customer suffered catastrophic losses. FINRA Arbitration No. 17-00558 (Aug. 8 ,2017). The customer contended that $100,000.00 was provided to Sugick based on the customer’s belief that the customer’s principal would not be at risk, but the customer ultimately lost the entire $100,000.00 investment.
On August 3, 2016, Sugick was terminated from NYLife supported by accusations that he refused to cooperate with NYLife representatives in an investigation into Sugick’s outside business activities involving unapproved commodity sales.
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