Matthew Leon White of Little Rock Arkanas a stockbroker formerly registered with MML Investors Services LLC (also known as MassMutual) has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity supported by findings that White neglected to comply with FINRA’s instructions during the period in which he was being investigated for engaging in undisclosed and unpermitted outside business activities while associated with the securities broker dealer. Letter of Acceptance Waiver and Consent No. 2018058815501 (Nov. 21, 2019).
According to FINRA Public Disclosure, White was discharged by MassMutual on May 30, 2018 founded on allegations that he engaged in activities outside the scope of his employment without providing any notification to MassMutual. This precluded the securities broker dealer from knowing the impact that White’s activities had on the company’s operations.
The AWC stated that on October 25, 2019, FINRA investigators followed up on the circumstances of MassMutual’s termination of White by requesting the stockbroker’s recorded testimony. As soon as White received the request from FINRA, his legal counsel contacted FINRA to report that the stockbroker would not comply with it. White’s failure to testify constituted violations of FINRA Rules 2010 and 8210.
This is not the first time that White has been sanctioned by a securities regulator for misconduct. In fact, he has been ordered by the Arkansas Securities Commissioner to pay a $5,000.00 civil penalty based upon consenting to findings of him engaging in unapproved private securities transactions while employed by MML Investors Services LLC. Case No. S-18-0105.
According to the Order, no less than five real estate business ventures had been organized by White while he was associated with MassMutual. These activities were apparently presented by White to MassMutual as outside business activities and were authorized by the securities broker dealer for this reason.
The Order stated that the real estate ventures had been examined by Arkansas Securities Department following the stockbroker’s discharge from MassMutual. The Department discovered that White’s outside business activities were misclassified – the real estate ventures were private securities transactions. The Department discovered that multiple clients of White invested in the real estate ventures after he promoted them. The Order stated that White neglected to comply with FINRA Rule 3280 in this regard which constituted the violation of 308.01(x) of the Rules of the Arkansas Securities Commissioner.
White was employed by MassMutual between June 9, 2015 and May 30, 2018.
