Securities Arbitration Lawyers BlogFINRA Bars Leslie Jackson Following Private Security Transactions
Leslie Jackson (Leslie Don Jackson CRD# 2176917) is a previously registered broker and investment advisor last employed with Momentum Independent Network Inc. (CRD# 17587), of Dallas Texas, where he spent his entire 31-year career. He began in the industry at Momentum in 1991.
Momentum discharged Jackson on 12/9/2022 and filed a Uniform Termination Notice for Securities Industry Registration (Form U5) on January 6, 2023. In it, Momentum listed the reason for his termination as “violation of firm policy.” No additional information was listed.
A customer dispute followed on 12/20/2022 with allegations of “Unsuitable recommendations; breach of contract and breach of fiduciary duty.” The client requests damages of $675,000; this claim is listed as “pending.”
FINRA began its own investigation following the Form U5 filing. Jackson was involved in the sale of promissory notes that were from a company allegedly involved in financing for construction companies. Jackson made recommendations for these promissory notes to five individuals, including one family member and three Momentum clients, who collectively bought $1,475,000 worth of the promissory notes. Jackson himself spent $500,000 on the notes. Along with Jackson, all six individuals bought a total of 19 investments in the promissory notes totaling $1,975,000.
In 2022, two state securities regulators brought actions against the issuers and others. In these actions, the regulators alleged that that the promissory notes were part of a fraudulent scheme. However, Jackson was not named as a defendant in these actions.
Jackson made recommendations to the investors about the notes, answered their questions, assisted them in completing the subscription documentation, and accepted payments from the investors for the notes’ issuers. For his effort, Jackson also received recurrent monthly payments from the issuers equal to three percent of each investment per year during their corresponding terms.
Momentum’s written policies required all brokers and associated persons including Jackson to disclose and notify the firm in writing of any private securities transactions they may be involved in or conducting. The firm required notification and written permission from the firm prior to involvement in the private securities transactions. Jackson failed to take this step.
Additionally, Jackson also falsely stated that he had not participated in private securities transactions on the firm’s compliance questionnaires from 2019 through 2022.
By these actions, Jackson violated FINRA’s Rule 3280 and Rule 2010.
Jackson neither confirmed nor denied the allegations in the Letter of Acceptance, Waiver & Consent AWC), and signed the letter affirming the indefinite bar from affiliation with any FINRA member. Jackson signed the AWC letter on 9/14/2023, and FINRA signed it on 9/19/2023, putting the bar into effect immediately.
Did You Invest With Leslie Jackson?
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