Written by The White Law Group• September 21, 2023• 2:57 pm• Broker Investigations

Dallas Broker Les Jackson Barred by FINRA

Les Jackson Barred by FINRA featured by top securiteis fraud attorneys, the White Law Group

Dallas Broker Les Jackson Barred after Allegations of Selling Away

According to a letter of acceptance, FINRA, the broker regulator, has barred former Dallas, Texas broker Leslie Don Jackson “Les Jackson” (CRD #2176917) from the securities industry. Jackson reportedly failed to provide documents to FINRA as requested in the investigation, which led to the bar.

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FINRA was reportedly investigating allegations that Jackson engaged in private securities transactions totaling $1,975,000 without giving his member firm prior written notice. Jackson was allegedly involved in selling promissory notes issued by entities supposedly operating in the business of financing construction companies. He reportedly recommended these investments to five individuals, which included three clients from his firm, who collectively bought $1,475,000 worth of the issuers’ promissory notes. Jackson also allegedly personally invested $500,000 in these notes.

Jackson’s participation in these investments allegedly involved introducing the investors to the notes, addressing their inquiries about the investments, assisting them in completing subscription documents, and gathering their payments for forwarding to the issuers. Furthermore, he reportedly received periodic payments from the issuers, equivalent to 3% of each investment annually throughout their respective durations, with monthly payouts. Additionally, Jackson purportedly falsely responded to questions regarding his involvement in “private securities transactions” on compliance questionnaires.

Private Securities Transactions (Selling Away)

FINRA (Financial Industry Regulatory Authority) has specific rules and regulations regarding private securities transactions, often referred to as “selling away.” These rules are important for maintaining the integrity of the financial industry and safeguarding investors’ interests. Here are FINRA’s rules for brokers regarding private securities transactions and why they are important to investors:

FINRA Rule 3280 – Private Securities Transactions of an Associated Person:

Rule 3280 defines private securities transactions as any securities transaction outside the regular scope of a broker’s employment with their member firm. This includes selling securities not offered or approved by the firm. Brokers are required to provide written notice to their member firm before participating in any private securities transaction. The firm can then decide whether to approve or disapprove of the transaction. If approved, the broker must still adhere to certain conditions, such as disclosing their role in the transaction to the customer.

Brokers must comply with their firm’s policies and procedures when engaging in private securities transactions. This ensures that the transaction aligns with the firm’s standards and the interests of investors.

Why FINRA Rules Are Important to Investors

FINRA’s rules on private securities transactions are in place to protect investors. They help ensure that brokers do not engage in potentially risky or fraudulent activities outside their firm’s oversight that could harm investors.

Requiring brokers to disclose their involvement in private securities transactions to their member firms helps the firm and investors assess any potential conflicts of interest or risks associated with the transaction. By requiring firms to review and approve these transactions, FINRA’s rules ensure that there is adequate supervision in place. This oversight helps prevent brokers from promoting inappropriate or unsuitable investments to their clients.

If a broker engages in unauthorized private securities transactions without complying with FINRA rules, investors have legal recourse to hold the broker and the firm accountable for any losses or damages incurred.

FINRA BrokerCheck – Leslie D. Jackson (“Les” Jackson)

According to his FINRA broker profile, Les Jackson has one pending customer complaint filed against him in December 2022. Allegations include unsuitable investments. The FINRA BrokerCheck tool is a free online tool that allows investors to research and verify the background and credentials of financial brokers, brokerage firms, and investment advisors registered with FINRA.

BrokerCheck provides investors with detailed information about the professional history, qualifications, and regulatory actions of brokers and brokerage firms. Investors can use the tool to verify whether a broker or brokerage firm is registered with FINRA. It’s also a great way to review their employment history, licensing status, and any regulatory actions or complaints filed against them.

According to his FINRA BrokerCheck report, Les Jackson was registered with Momentum Independent Network in Dallas, Texas for 31 years before he was reportedly discharged in December 2022 for “violating firm policy.”

Recovery of Investment Losses

The White Law Group is investigating potential securities claims involving Les Jackson and the liability his employers may have for failure to supervise him. Brokerage firms that fail to monitor the business activities of their employees may be liable for investment losses due to negligent supervision for the misconduct of their employees.

Our firm is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Seattle, Washington. We represent investors in all 50 states including Texas. Our attorneys have recovered millions of dollars from many brokerage firms in the past.