Kenneth K. Jobson of Saint Petersburg Florida a stockbroker formerly employed by Morgan Stanley has been fined $5,000.00 and suspended for three 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. Letter of Acceptance Waiver and Consent No. 2015048332401 (May 31, 2018).
According to the AWC, in April of 2014, Morgan Stanley was notified by Jobson about his plans to invest and undertake activities in Fuel Service Company. Apparently, Jobson’s outside business activity request was denied by Morgan Stanley. Nonetheless, in June of 2015, a 39.5 percent partnership interest in Fuel Service Company was procured by Jobson. Additionally, from June of 2015 to January of 2017, Jobson reportedly took part in the business of Fuel Service Company by engaging in marketing and planning activities.
The AWC stated that a 21.7 percent ownership interest in Motor Home Company was also acquired by Jobson in February of 2015. The Motor Home Company reportedly compensated Jobson $13,200.00 in 2016 in return for Jobson’s marketing and planning efforts on behalf of the Motor Home Company. Apparently, Jobson’s investment and activities pertaining to Motor Home Company were not disclosed in writing to Morgan Stanley.
The AWC stated that the procedures and policies set forth by Morgan Stanley disallowed Jobson from engaging in outside business activities or investing without the firm having provided written approval. Evidently, in November of 2015, Jobson failed to be forthcoming in Morgan Stanley’s compliance questionnaires by claiming that he did not participate in outside business activities warranting disclosure to the firm.
Consequently, FINRA found that Jobson’s conduct was violative of FINRA Rules 2010 and 3270.
Jobson was discharged from Morgan Stanley on December 20, 2016 founded on allegations that he engaged in undisclosed outside business activities.
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