Russel Leo Sadler, of Plymouth, Massachusetts, a stockbroker with LPL Financial, LLC, was fined $25,000.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity for twelve months after consenting to findings that he engaged in unauthorized private securities transactions. Letter of Acceptance, Waiver and Consent, No. 2014039725301 (Sept. 7, 2016).
According to the AWC, while Sadler was registered with LPL Financial, he assisted investors by effecting private securities transactions outside the auspices of his firm. The AWC reported that Sadler had not provided written notice to his firm prior to engaging in such.
The AWC stated that in 2008, Sadler made an investment estimated at $200,000.00 in a company, PRS, which proposed the creation of a Plymouth, Massachusetts, movie studio. Apparently, Sadler engaged a number of his investors in the purchase of securities issued by PRS, where he accumulated nearly $250,000.00 in investor funds in the process. PRS reportedly became a failed enterprise, and all of the aforementioned customers’ principal was lost. FINRA found that Sadler’s conduct was violative of FINRA Rules 2010, as well as NASD Conduct Rules 2110 and 3040.
The AWC further reported that Sadler engaged in unauthorized outside business activities. Specifically, in 2010, Sadler created entities, MI and ERS, despite not providing any notification to his firm prior to engaging in such activities. Sadler reportedly worked in the capacity of the sole manager of the entities through 2013. FINRA found that Sadler’s conduct in this regard was violative of FINRA Rules 2010 and 3270.
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