Jordan Caleb Allen, of New York, New York, a stockbroker formerly associated with Fidelity Brokerage Services LLC, was sanctioned by Financial Industry Regulatory Authority (FINRA) for violations of FINRA Rules 3280 and 2010. The violations stemmed from Allen’s participation in private securities transactions without providing prior written notice to his employer, Fidelity Brokerage Services LLC. Letter of Acceptance, Waiver, and Consent (AWC) No. 2023079459502.
These activities occurred between February and June 2023, during which Allen executed 1,507 securities transactions in an external brokerage account held by a customer referred to as Customer A. The account was maintained at a different member firm. Allen and Customer A had a personal relationship, and Customer A provided Allen with login credentials to facilitate these trades. The transactions, including options trades, amounted to $726,585 in gross value.
Fidelity discovered Allen’s unauthorized trading activities and reported them to FINRA in August 2023 via a Form U5. At that time, Allen had already voluntarily resigned from Fidelity on July 6, 2023. The Form U5 disclosed an internal review that identified Allen’s trading in the third-party account without the firm’s knowledge or approval. Additionally, when questioned by Fidelity, Allen initially misled the firm by claiming the trades were merely hypothetical or paper trades. His failure to notify Fidelity of these transactions violated FINRA Rule 3280, which requires stockbrokers to provide written notice to their member firm before engaging in any securities transactions outside their regular course of employment.
In response to FINRA’s investigation, Allen submitted a Letter of Acceptance, Waiver, and Consent, agreeing to sanctions without admitting or denying the findings. FINRA imposed an eight-month suspension from associating with any FINRA member in all capacities, effective from November 18, 2024, to July 17, 2025. Allen was also fined $10,000.00, which he is required to pay upon reassociation with a member firm or prior to applying for relief from statutory disqualification.
