coordinating AB's meetings and appointments, reviewing correspondence, making banking deposits, attending and participating in trade shows, and testing the functionality of company's website. Yniguez had a company-issued email address, and received approximately $5,000 as compensation from AB for his services.
solicited and referred 11 individuals, including eight of his Firm customers, to invest in shares of Company C. Yniguez recommended that his Firm customers and the other individuals invest in Company C, endorsing the company and its management; and referred them to Company C to complete their investment. Yniguez also collected the investors' checks and delivered them to, or deposited them on behalf of, Company C.
No registered person may be an employee, independent contractor, sole proprietor, officer, director or partner of another person . . . unless he or she has provided prior written notice to the member, in such form as specified by the member.
FINRA Rule 3280: Private Securities Transactions of an Associated Person(a) ApplicabilityNo person associated with a member shall participate in any manner in a private securities transaction except in accordance with the requirements of this Rule.(b) Written NoticePrior to participating in any private securities transaction, an associated person shall provide written notice to the member with which he is associated describing in detail the proposed transaction and the person's proposed role therein and stating whether he has received or may receive selling compensation in connection with the transaction; provided however that, in the case of a series of related transactions in which no selling compensation has been or will be received, an associated person may provide a single written notice.(c) Transactions for Compensation(1) In the case of a transaction in which an associated person has received or may receive selling compensation, a member which has received notice pursuant to paragraph (b) shall advise the associated person in writing stating whether the member:(A) approves the person's participation in the proposed transaction; or(B) disapproves the person's participation in the proposed transaction.(2) If the member approves a person's participation in a transaction pursuant to paragraph (c)(1), the transaction shall be recorded on the books and records of the member and the member shall supervise the person's participation in the transaction as if the transaction were executed on behalf of the member.(3) If the member disapproves a person's participation pursuant to paragraph (c)(1), the person shall not participate in the transaction in any manner, directly or indirectly.(d) Transactions Not for CompensationIn the case of a transaction or a series of related transactions in which an associated person has not and will not receive any selling compensation, a member which has received notice pursuant to paragraph (b) shall provide the associated person prompt written acknowledgment of said notice and may, at its discretion, require the person to adhere to specified conditions in connection with his participation in the transaction.(e) DefinitionsFor purposes of this Rule, the following terms shall have the stated meanings:(1) "Private securities transaction" shall mean any securities transaction outside the regular course or scope of an associated person's employment with a member, including, though not limited to, new offerings of securities which are not registered with the Commission, provided however that transactions subject to the notification requirements of Rule 3210, transactions among immediate family members (as defined in FINRA Rule 5130), for which no associated person receives any selling compensation, and personal transactions in investment company and variable annuity securities, shall be excluded.(2) "Selling compensation" shall mean any compensation paid directly or indirectly from whatever source in connection with or as a result of the purchase or sale of a security, including, though not limited to, commissions; finder's fees; securities or rights to acquire securities; rights of participation in profits, tax benefits, or dissolution proceeds, as a general partner or otherwise; or expense reimbursements.
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The firm was advised by the U.S. Securities and Exchange Commission that the Representative may be involved in referring customers to an outside investment opportunity. Upon investigation by the firm, the Representative acknowledged that he had referred certain TFA customers, as well as non-customers, to an investment opportunity not approved by the firm. The Representative also acknowledged making a personal investment with this outside entity, as well as performing certain work functions for the entity. The Representative did not seek or receive firm approval to engage in any of these activities.
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