FINRA barred broker Forrest Nolan Jackson for selling away and failing to provide his firm prior written notice of outside business activities. The particular securities Jackson allegedly sold away were promissory notes offered by a firm that subsequently became the target of a Securities and Exchange Commission ("SEC") lawsuit alleging multi-million-dollar fraud.
Disciplinary Proceeding #20100235029-01
According to the findings, while associated with PlanMember Securities Corporation as an investment company products representative, Jackson created and became CEO of an entity called Your Platinum Distributors Insurance Marketing, Inc. and participated in the sales of over $60 million in Diversified Lending Group ("DLG") notes, generating gross commission revenues of over $6 million.
These sales were conducted away from PlanMember and the investigation states Jackson failed to inform PlanMember of these transactions, much less provide the firm with prior written notice or seek written approval to participate.
FINRA discovered that DLG was a California corporation purportedly in the business of acquiring and operating income-producing properties. Investigators also referenced a 2009 SEC lawsuit against DLG, filed March 4, 2009, in the United States District Court for the Central District of California.
The SEC alleged DLG had engaged in a multi-million-dollar securities fraud involving the misappropriation of millions of dollars, including from customers who purchased one- or five-year Secured Investment Notes that Jackson and Your Platinum had marketed to their clients.
The investigation found that in 2007, Jackson, acting on behalf of Your Platinum, signed a selling agreement with DLG subsidiary AEI, which allowed Your Platinum to wholesale market DLG notes.
FINRA's sole cause of action against Jackson is the charge of selling away, the Authority alleging that Jackson participated in sales of and received commissions from DLG sales, though he failed to provide prior written disclosure to FINRA member-firm PlanMember of these outside business activities.
If you have invested with Forrest Nolan Jackson, Your Platinum Distributors or with any broker that has sold you securities away from the FINRA-member firm, and such inappropriate sales have resulted in investment losses or proven harmful to your interests, please call The Law Offices of Jonathan W. Evans & Associates at (800) 699-1881 for an investigation and consultation.