Jennifer Ceterko, LPL Financial – Barred by FINRA – Outside Business Activities and Supervision Concerns
FINRA has reportedly barred Jennifer Ceterko, also known as Jennifer Hwang (CRD #3091599), from acting as a broker or associating with any FINRA member firm in any capacity. The sanction follows FINRA’s investigation into allegations involving undisclosed outside business activities, undisclosed private securities transactions, supervision issues, and failure to cooperate with a regulatory investigation.
Ceterko was previously registered as both a broker and an investment adviser and had approximately 11 years of industry experience. Her registration history includes associations with PFS Investments Inc. and LPL Financial LLC.
FINRA Bar and Regulatory Findings- Jennifer Ceterko
According to FINRA, without admitting or denying the findings, Jennifer Ceterko reportedly consented to the sanction and to the entry of findings that she:
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Refused to provide documents and information requested by FINRA
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Failed to cooperate with FINRA’s investigation into:
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Undisclosed outside business activities
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Undisclosed private securities transactions
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Whether she accessed customer accounts at her former firm after associating with a new firm
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Refused to appear for on-the-record testimony requested by FINRA
Failure to provide requested documents or testimony is itself a serious regulatory violation. FINRA relies on cooperation from registered representatives to carry out its investor protection mandate, and refusal to cooperate often results in the most severe sanctions, including permanent bars.
Outside Business Activities and Private Securities Transactions
FINRA rules require brokers to fully disclose outside business activities (OBAs) and obtain firm approval before engaging in private securities transactions, sometimes referred to as “selling away.”
Undisclosed activities can expose investors to significant risks, including:
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Investments that are not reviewed or approved by the firm
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Lack of firm supervision or compliance oversight
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Increased risk of fraud, misrepresentation, or unsuitable recommendations
When these activities occur outside a firm’s supervision, investors may not receive the protections normally provided by compliance reviews, due diligence, and supervisory controls.
Supervision Concerns and Firm Responsibilities
This matter also raises broader questions about broker supervision. FINRA member firms are required to establish and enforce reasonable supervisory procedures designed to detect and prevent misconduct, including:
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Monitoring outside business activities
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Preventing unauthorized account access
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Reviewing customer communications and transactions
When supervision fails, investors may have claims not only against the individual broker, but also against the supervising brokerage firm.
Employment Separation After Allegations
BrokerCheck records also reflect an employment separation after allegations, which may be relevant for investors evaluating potential claims. Such disclosures often indicate disputes or concerns that arise prior to or during regulatory investigations.
Investor Recovery Options Through FINRA Arbitration
Investors who suffered losses while working with Jennifer H. Ceterko may have recovery options through FINRA arbitration. FINRA arbitration is the primary forum for resolving disputes between investors and brokerage firms.
Potential claims may include:
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Failure to supervise
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Unsuitable investment recommendations
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Unauthorized transactions
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Selling away or undisclosed investments
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Misrepresentations or omissions
Importantly, FINRA arbitration claims are typically brought against the brokerage firm, not just the individual broker, which can be critical for recovery.
How The White Law Group Can Help Investors
The White Law Group, with offices in Seattle and Chicago, represents investors nationwide in FINRA arbitration proceedings involving broker misconduct, supervision failures, and undisclosed investment activities. Our attorneys focus on helping investors understand their rights and pursue financial recovery when brokerage firms and financial professionals violate industry rules.
If you invested with Jennifer H. Ceterko (Jennifer Hwang) or believe your broker engaged in undisclosed activities, speaking with an experienced securities fraud attorney may help you evaluate your options. Please call 888-637-5510 for a free consultation or visit us at whitesecuritieslaw.com.
Frequently Asked Questions (FAQs) Jennifer Ceterko
Can investors recover losses after a broker is barred by FINRA?
Yes. A FINRA bar does not prevent investors from seeking financial recovery. Investors may still pursue claims through FINRA arbitration, often against the brokerage firm that employed or supervised the broker. Claims may involve failure to supervise, unsuitable recommendations, or undisclosed outside business activities.
What are undisclosed outside business activities and why do they matter to investors?
Outside business activities are any business ventures a broker engages in outside their registered brokerage role. FINRA rules require these activities to be disclosed and approved by the firm. When outside activities are undisclosed, they may lack firm supervision, increasing the risk of unapproved investments, misrepresentations, or fraud.
Who can be held responsible for losses related to broker misconduct?
In many cases, investors may bring claims not only against the individual broker, but also against the brokerage firm for failure to supervise. FINRA rules require firms to monitor their representatives’ activities, and firms may be liable when inadequate supervision allows misconduct to occur.
