Brian Lewis Pittman of Miami, Florida, a stockbroker with Sabadell Securities USA, Inc., was fined $10,000 and suspended for six months from associating with any Financial Industry Regulatory Authority (FINRA) member in all capacities after consenting to findings that he engaged in unauthorized private securities transactions. Letter of Acceptance, Waiver and Consent, No. 2016048480901 (Feb. 2, 2016).
According to the AWC, on June 1, 2013, Pittman referred one of Sabadell’s affiliated firm customers to a petroleum company opportunity, specifically for the customer to make a $100,000 investment in the petroleum company’s promissory note. FINRA found that Pittman earned $4,000 from the petroleum company in connection with his participation in the private securities transaction.
The AWC indicated that the firm?s supervisory procedures called for written notification and approval with respect to outside private securities transactions prior to engaging in such. The AWC stated that Pittman had not notified his firm in writing concerning his aforementioned private securities transaction prior to partaking in it, nor did Pittman retrieve authorization from his firm to engage in the conduct.
Further, the AWC stated that in January 2014, Pittman indicated to his firm via the firm’s annual compliance questionnaire that he had not engaged in any private securities transactions. FINRA found that Pittman violated NASD Conduct Rule 3040 and FINRA Rule 2010 as a result.
Public disclosure records via BrokerCheck reveal that Pittman has been subject to prior discipline concerning private securities transactions. On December 12, 2014, Pittman was fined $7,500 and suspended for four months by FINRA after consenting to findings that he engaged in unauthorized private securities transactions. Pittman reportedly failed to provide his firm written notice and gain approval prior engaging in the conduct, resulting in his violation of FINRA Rule 2010 and NASD Conduct Rule 3040.
In March 9, 2009, Pittman became subject to a customer dispute where a customer requested $100,000 in damages after complaining about unrealized account losses and the execution of stop loss orders to manage downside risk.
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