Grant P. Talbert of Lexington Kentucky a stockbroker formerly registered with NYLife Securities LLC has been fined $15,000.00 and suspended for sixteen months from being an investment adviser representative, investment adviser, agent or broker-dealer in the State of Kentucky based upon findings that (1) Talbert and an investment adviser entered into a solicitor relationship without NYLife Securities LLC ever authorizing the arrangement and (2) Talbert lied to the Kentucky Department of Financial Institutions when it investigated Talbert’s activities. Department of Financial Institutions vs. Grant Talbert Administrative Action No. 16-AH-00102 (Jan. 9, 2017).
According to the Order, in 2015, during which time Talbert was employed as a broker dealer of NYLife, he and New Millennium Asset Management Inc. – a fee based registered investment advisory – entered into a Solicitor’s Agreement. The Agreement called for Talbert to be compensated in return for being the firm’s investment adviser representative. However, at the time that Talbert entered the relationship, Talbert failed to inform NYLife and procure its permission.
The Order stated that Talbert had been compensated $23,957.66 by New Millennium Asset Management Inc. for Talbert engaging in investment advisory services on its behalf. The Order further revealed that when NYLife Securities LLC had been investigated by the Kentucky Department of Financial Institutions, Talbert misled or lied to the regulator concerning the arrangement that Talbert and New Millennium made. Specifically, Talbert denied having entered into the Agreement.
Talbert reportedly met with investors at the Department of Financial Institutions on May 3, 2016, where he then admitted to having been party to the relationship with New Millennium and failing to disclose the outside business activity to NYLife. The Department of Financial Institutions found Talbert’s conduct violative of KRS 292.440 and 808 KAR 10:440, Section 1(27).
Additionally, Talbert reportedly engaged in business in the State of Kentucky without registration as an investment advisor representative. Consequently, Talbert’s conduct was found by the Department of Financial Institutions to be violative of KRS 292.330(11).
Moreover, Talbert 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 Talbert engaged in undisclosed outside business activities. Letter of Acceptance Waiver and Consent No. 2016049229001 (Nov. 18, 2016).
According to the AWC, through Talbert’s arrangement with New Millennium Asset Management Inc, Talbert was provided compensation based on a portion of advisory fees procured by the firm from investment advisory customers. Evidently, Talbert facilitated seven customers’ deposits of $7,648,500.00 through the arrangement. FINRA found that Talbert’s failure to inform NYLife about this arrangement was violative of FINRA Rules 2010 and 3270.
Talbert’s registration with NYLife Securities LLC was terminated on March 14, 2016.
