FINRA Bars Broker Over Private Securities Transactions

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FINRA Bars Broker Over Private Securities Transactions

Former broker Brian Smit entered a Letter of Acceptance, Waiver, and Consent, accepting a bar from being associated with any FINRA member in any capacity over engaging in unapproved private securities transaction in violation of his firm’s policy.

Smit entered the securities industry in April 2010, when he became associated with LPL Financial, LLC and registered with FINRA as a General Securities Representative. On August 24, 2015, LPL filed a Uniform Termination Notice for Securities Industry Registration, also known as a Form U-5, disclosing that Smit’s association with LPL had been terminated on August 3, 2015 as a result of participating in unapproved private securities transactions in violation of LPL’s policy.

In February 2016, FINRA requested that Smit appear and provide on-the-record testimony related to allegations he participated in an unapproved private securities transaction. Smit refused to provide said testimony, violating FINA Rules 8210 and 2010.

The nature of Smit’s private transactions is presently unclear. According to public records, though, Smit’s outside business activities include Pinnacle Wealth Management and Smit Holdings, LLC, which is a rental real estate business.

When a broker sells investments outside of a brokerage firm, the broker is committing an act called “selling away,” which is impermissible under FINRA rules.

If you or someone you know has lost money as a result of an investment or Ponzi scheme, please contact Richard Frankowski at 888-741-7503 to discuss your potential legal remedies or complete the contact form.

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