James Earl Mahan, of Braunfels, Texas, a stockbroker with J.P. Morgan Securities LLC, was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member firm after consenting to findings that he obstructed a FINRA investigation into allegations of his unauthorized outside business activities. Letter of Acceptance, Waiver and Consent, No. 2015047115101 (July 25, 2016).
According to the AWC, JP Morgan notified FINRA, via Form U5, that Mahan was terminated amid allegations of selling away or his recommending certain investments to a JP Morgan client that were outside the auspices of JP Morgan. FINRA started to investigate Mahan’s conduct pursuant to Rule 8210 subsequent to JP Morgan’s report.
The AWC stated that on May 31, 2016, FINRA personnel sent Mahan a request to provide FINRA with recorded testimony in connection with the allegations. Apparently, Mahan eventually spoke with FINRA via telephone on June 27, 2016. During this time, Mahan seemingly acknowledged FINRA’s request for his recorded testimony to be provided, but indicated that he would not be appearing for such testimony at any point. FINRA found that Mahan’s refusal to cooperate in this regard was violative of FINRA Rules 2010 and 8210, resulting in Mahan’s permanent bar.
Public disclosure records reveal that just prior to JP Morgan’s termination of Mahan in September 2015, Mahan was named in a customer dispute on September 9, 2015. Apparently, the customer requested $101,000.00 after claiming that Mahan solicited from the customer the investment of an outside and unapproved investment.
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