Nathan A. Majors, of South Holland, Illinois, a stockbroker with J.P. Morgan Securities LLC, was fined $5,000.00 and suspended for four months from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity after consenting to findings that he engaged in outside business activities which were not permitted by his firm. Letter of Acceptance, Waiver and Consent, No. 2015044545001 (Sept. 23, 2016).
According to the AWC, between 2010 and 2014, while Majors was associated with J.P. Morgan Securities, he effected the sales of an estimated $2,000,000.00 in equity indexed annuities to customers. The AWC stated that such annuities were not offered via J.P. Morgan. Majors reportedly received an estimated $130,000.00 in commissions associated with his sales, several of which were also customers of J.P. Morgan.
The AWC reported that Majors was subject to his firm’s policy that called for him to report to his firm regarding outside business activities which Majors was involved. Apparently, Majors was required to obtain J.P. Morgan’s permission of such outside business activity prior to Majors engaging in such.
Majors reportedly failed to cooperate with J.P. Morgan’s procedures, in that he never notified his firm regarding his involvement in the annuity sales, neither had he identified within his annual compliance certifications that he was involved in such. FINRA found that Major’s conduct was violative of FINRA Rules 2010 and 3270, as well as NASD Conduct Rule 3030.
FINRA Public Disclosure records reveal that Majors has been subject to a customer dispute from April 5, 2004, in which the customer alleged that Majors made misrepresentations to the customer concerning payment plans associated with variable universal life insurance policies. Majors worked for LPL Financial LLC subsequent to his termination from J.P. Morgan, but was terminated on May 8, 2015, in connection with LPL Financial LLC learning about Major’s aforementioned misconduct of engaging in outside business activities.
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