Richard Joseph Jackson, of New York, New York, a stockbroker registered with Equity Services Inc., has been fined $5,000.00 and suspended for one month from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity because Jackson made misleading claims in communications with customers. Letter of Acceptance, Waiver, and Consent No. 2022076868701, (August 22, 2024).
FINRA Rule 2210 prohibits stockbrokers from making exaggerated or misleading claims, predicting future performance, or making guarantees about investment returns. For example, stockbrokers must give a complete and honest view of any risks associated with a particular investment rather than making overly optimistic statements. When these rules are broken, it also constitutes a violation of FINRA Rule 2010.
According to the AWC, Jackson sent misleading emails to at least 20 customers between January 2020 and November 2022. In these emails, Jackson made exaggerated and unrealistic claims about the future performance of certain stocks without mentioning any associated risks. For example, he told one customer that a technology company would likely grow more than 20 percent per year for the next five years and predicted that the company’s growth would significantly exceed expectations. He reportedly told another customer that a pharmaceutical company’s stock could reach over $1,000 within 12 to 36 months, which FINRA found to be a highly optimistic and speculative claim.
The regulator found that Jackson’s statements were misleading because they were based on unrealistic projections and omitted key details about potential risks. By making those claims, the regulator found that Jackson created an unfair and imbalanced picture of the investments, leading his customers to have overly optimistic expectations without a full understanding of potential downsides. He violated FINRA Rules 2210 and 2010.
Jackson was associated with Equity Services, Inc. in New York, New York, from October 9, 2018, to November 15, 2022. Jackson was associated with MML Investors Services, LLC in Tarrytown, New York, from March 18, 2013, to May 14, 2018.
