LPL Financial Broker Barred For Undisclosed Private Securities Transactions
John Edgar Simmons Jr (CRD#: 4878890) is listed by FINRA as a previously registered broker and previously registered investment adviser or RIA. From August of 2011 to September of 2015, Mr. Simmons Jr. worked at Investors Capital Corp. in Pensacola, FL. Subsequently, he served as a representative of LPL Financial LLC in Santa Rosa County, Florida.
On May 10th, 2021, the Financial Industry Regulatory Authority (FINRA) announced that Mr. Simmons Jr. has been indefinitely barred from the securities industry. He failed to cooperate with an investigation into alleged unapproved private securities transactions. Here, our Miami private placement attorney discusses the FINRA disciplinary action taken against the former Florida broker.
Barred Sanctions: Former LPL Financial Broker John Edgar Simmons Jr.
Background & Facts
In September of 2020, LPL Financial LLC filed a Form U5 terminating the registration of broker John Edgar Simmons Jr. Approximately one month later, the brokerage firm updated the Form U5 to note that Mr. Simmons Jr. was terminated by the brokerage firm after his alleged “involvement in a private securities transaction without notice or approval by the Firm.” FINRA launched its own independent inquiry into the allegations against this securities broker soon after. The agency requested financial documents and on-the-record testimony from John Edgar Simmons Jr.
Securities Industry Regulations: FINRA Rule 3280 and FINRA Rule 8210
For a number of different reasons, private placement transactions can be risky. In order to help protect the interests of investors, the securities industry has strict rules and regulations in place regarding private securities transactions. Most notably, under FINRA Rule 3280, no registered representative is permitted to engage in a private securities transaction for which they receive financial compensation without:
- Submitting prior written notice to their member firm; and
- Receiving approval from their member firm.
In this case, LPL Financial submitted documentation to FINRA noting that its former broker John Edgar Simmons Jr. failed to provide notice or obtain approval. Pursuant to industry rules, FINRA tried to investigate the matter. However, in violation of FINRA Rule 8210, Mr. Simmons Jr. declined to cooperate with the agency’s attempted investigation into alleged unapproved private securities transactions.
Broker Sanctions
Although he did not admit to or deny any wrongdoing in this case, former LPL Financial broker John Edgar Simmons Jr. consented to the proposed penalties by securities regulators. He accepted an indefinite bar for associating with any FINRA member firm in any professional capacity. The bar took effect in May of 2021.
Call Our Miami, FL Private Securities Losses Attorney for Legal Advice
At Carlson & Associates, P.A., our Florida securities fraud lawyers are devoted to protecting the best interests of investors. If you or your family member suffered financial losses in a private securities transaction, we are more than ready to help. Give us a call now to arrange a confidential consultation with an experienced attorney. With a legal office located in Miami, we advocate for investor rights in Florida, Puerto Rico, and beyond.
Resource:
brokercheck.finra.org/individual/summary/4878890