Samuel Ryan McClain, of Boston, Massachusetts, a stockbroker with Northwestern Mutual Investment Services, LLC, was named in a FINRA Department of Enforcement Complaint alleging that McClain failed to comply with a FINRA investigation into allegations of McClain’s misconduct which consisted, inter alia, of outside business activities. Department of Enforcement v. Samuel Ryan McClain, No. 20150455320-02 (Aug 10, 2016).
According to the Complaint, in July of 2016, Northwestern Mutual Services, LLC, notified FINRA that it terminated McClain amid allegations of McClain’s failure to disclose prior judgments, a bankruptcy over a business in which McClain was in control of, and business that McClain had exercised control of which was being investigated by the State of Massachusetts.
The Complaint alleged that on September 15, 2015, Northwestern Mutual notified FINRA via Form U5 that the firm discovered McClain to have entered into multiple sponsorship agreements with PC, and to have agreed to compensate PC more than $400,000.00 associated with marketing. Apparently, McClain did not notify his firm about such sponsorship agreements, and the firm did not provide him with the authority to enter into such.
Following Northwestern’s termination of McClain, FINRA launched an investigation into McClain’s potential misconduct cited by Northwestern. The Complaint stated that since December 21, 2015, FINRA submitted multiple requests to McClain to provide recorded testimony, per FINRA Rule 8210, in connection with the allegations. On numerous occasions, as indicated by the Complaint, McClain did not respond.
The Complaint further indicated that after McClain did eventually respond, he was granted an extension of time for providing FINRA with recorded testimony. However, McClain ultimately never cooperated as FINRA had requested. As such, FINRA claimed that McClain violated FINRA Rules 2010 and 8210.
Public disclosure records reveal that McClain has been subject to five disclosure incidents. Prior to FINRA’s Complaint against McClain, he was suspended by FINRA on October 13, 2016, for failing to respond to FINRA’s requests for documentation and information in connection with the allegations of his misconduct.
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