Jeffrey Hall Heely of Tiburon, California submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Financial Industry Regulatory Authority (FINRA) in which he allegedly engaged in an undisclosed outside business activity in violation of FINRA Rules 3270 and 2010.
From June 2018 until May 2019, Jeffrey Hall Heely was registered with NMS Capital Advisors as a General Securities Principal and a General Securities Representative. According to FINRA, between January and May 2019, Heely entered into a contract with another company and solicited fourteen potential investors to invest in a private placement offering of senior secured notes. The findings stated that Heely allegedly conducted the activities through a personal email address and received $17,000 as compensation. In addition, Heely allegedly denied having engaged in any outside business activities to his firm. Heely is not currently registered or associated with a member but remains subject to FINRA’s jurisdiction pursuant to Article V, Section 4 of FINRA’s By-Laws.
FINRA Rule 3270 provides that “no registered person may be an employee, independent contractor, sole proprietor, officer, director or partner of another person, or be compensated, or have the reasonable expectation of compensation, from any other person as a result of any business activity outside the scope of the relationship with his or her member firm, unless he or she has provided prior written notice to the member, in such form as specified by the member.” A violation of FINRA Rule 3270 also constitutes a violation of FINRA Rule 2010.
Without admitting or denying FINRA’s findings, Jeffrey Hall Heely was assessed a deferred fine of $5,000 and suspended from association with any FINRA member in all capacities for two months. The suspension was in effect from May 4, 2020, through July 3, 2020.
Stockbrokers have been known to engage in many practices that may violate industry and firm rules, practices, and procedures. In order to protect investors from stockbroker misconduct, FINRA rules require brokerage firms to establish and implement a supervisory system. The implementation of these industry rules requires supervisors to monitor their employees to ensure compliance with federal and state securities laws, securities industry rules and regulations, and the brokerage firm’s own policies and procedures. If broker-dealers and/or their supervisors fail to establish and implement these protective measures, they may be liable to investors for damages which flow from the broker’s misconduct. Therefore, investors who have suffered losses stemming from outside business activities, and/or other misconduct by their broker can file claims to recover damages against broker-dealers, like NMS Capital Advisors, which should consistently oversee its brokers’ activities in order to prevent the above-described misconduct.
Have you suffered losses in your NMS Capital Advisors account due to misconduct by your broker? Was Jeffrey Hall Heely your stockbroker? If so, call Robert Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation. Mr. Pearce is accepting clients with valid claims against NMS Capital Advisors stockbrokers who may have engaged in broker misconduct and caused investors’ losses.
The most important of investors’ rights is the right to be informed! This Investors’ Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 40 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues. The lawyers at our law firm are devoted to protecting investors’ rights throughout the United States and internationally! Please visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at email@example.com for answers to any of your questions about this blog post and/or any related matter.