Richard J. Jackson, a former broker at Equity Services in New York, faced suspension by FINRA for one month. This action came after an investigation into his conduct following his termination in November 2022.
FINRA, the Financial Industry Regulatory Authority, cited Jackson for violating Rule 2210. He made false and misleading claims to at least 20 customers about a pharmaceutical company’s stock.
Jackson wrongly stated the stock would exceed $1,000 within 12 to 36 months. As a result, FINRA fined him $5,000 and suspended him from the securities industry. Jackson held a license with Equity Services from October 2018 until November 2022.
His record shows three tax liens since 2013, hinting at possible money troubles. Equity Services may bear some blame for not watching Jackson closely enough. As of August 23, 2024, Jackson is not registered with any broker-dealer firm.
This case shows the serious consequences of breaking FINRA rules. The story doesn’t end here.
Key Takeaways
Table of Contents
- Richard J. Jackson, a former financial advisor, was suspended by FINRA for one month and fined $5,000 for making false claims about stocks.
- Jackson violated FINRA Rule 2210 by making misleading statements about a pharmaceutical company’s stock value and failing to do proper research.
- The suspension came after Jackson was terminated from Equity Services in 2022, which triggered an investigation by KlaymanToskes.
- Jackson’s actions affected at least 20 customers, potentially leading to poor investment choices and financial losses.
- Investors who lost money with Jackson may have options to seek help from firms that handle such cases.
Overview of Allegations Against Richard J. Jackson
FINRA accused Richard J. Jackson of serious misconduct. He allegedly made false claims about a tech company’s stock and failed to do proper research.
Specific Violations Cited by FINRA
FINRA cited specific violations against Richard J. Jackson. These violations related to FINRA Rule 2210, which governs public communications in the financial industry.
- False claims about stock value: Jackson stated a pharmaceutical company’s stock would surpass $1,000 within 12 to 36 months. This claim lacked proper support and misled investors.
- Misleading representations: Jackson made false and misleading statements about investments to clients. These statements could have led to poor investment choices and financial losses.
- Violation of communication rules: Jackson’s actions went against FINRA Rule 2210. This rule sets standards for clear and honest communication with the public.
- Lack of due diligence: Jackson failed to research and verify his claims about the technology company’s stock. This oversight led to spreading inaccurate information to investors.
- Exaggerated investment potential: Jackson overstated the possible gains from the pharmaceutical stock. Such exaggeration can cause investors to make risky decisions based on false hopes.
- Disregard for investor protection: By making unsupported claims, Jackson put his clients’ investments at risk. This behavior goes against FINRA’s mission to protect investors.
- Breach of professional conduct: As a financial advisor, Jackson was expected to provide accurate information. His actions fell short of this professional standard.
Consequences Faced by Richard J. Jackson
Richard J. Jackson faced a $5,000 fine and a four-month suspension from FINRA. Read on to learn more about the case and its impact on the financial industry.
A regulatory action was initiated by FINRA against Jackson in August 2024. The allegations were that he:
- Made promissory, unwarranted, and exaggerated claims in email communications to customers
- Provided unwarranted predictions and projections of future performance
- Sent emails that were not fair and balanced, omitting key risks associated with specific stocks or industries discussed
Without admitting or denying the findings, Jackson consented to sanctions including:
- A one-month suspension from all capacities (September 3, 2024 to October 2, 2024)
- A $5,000 fine
Fine and Suspension Details
FINRA imposed significant penalties on Richard J. Jackson for his misconduct. The regulatory body took decisive action to address the violations.
| Penalty Type | Details |
|---|---|
| Suspension | One month |
| Fine | $5,000 |
| Reason | Exaggerated and unwarranted representations to at least 20 customers |
| Investigation Trigger | Termination from Equity Services in 2022 |
| Investigating Entity | KlaymanToskes |
The suspension and fine were direct results of FINRA’s findings. Jackson’s actions affected multiple clients, leading to serious consequences. His termination from Equity Services prompted further scrutiny.
Judgments/Liens
Three outstanding judgments/liens were reported:
- $49,376 civil judgment filed by Citibank on October 4, 2013 in Nassau County, NY
- $41,460.66 tax lien filed by the IRS on July 24, 2013
- $39,000 civil judgment filed by Citibank on January 1, 2013 in Nassau County, NY
Jackson stated the third judgment was “currently being resolved through innovative solutions at $705.00 per month.”
Conclusion
Richard Jackson’s suspension highlights the risks of trusting financial advisors blindly. His actions broke rules and hurt many investors. This case shows why people must check their advisor’s background carefully.
Investors who lost money with Jackson may still have options. They can seek help from firms that handle such cases. The financial world needs honest advisors who put clients first.
Smart investors stay alert and ask questions to protect their money.
FAQs
1. Why was Richard J. Jackson suspended by the Financial Industry Regulatory Authority?
The Financial Industry Regulatory Authority (FINRA) suspended Richard Jackson for making exaggerated claims about investment losses. His actions were deemed broker misconduct, leading to disciplinary action.
2. What is a BrokerCheck report and how does it relate to this case?
A BrokerCheck report is a public record of a financial advisor’s professional history. In this case, it shows Richard Jackson’s suspension and details about his investment fraud, helping investors make informed decisions.
3. What is a Letter of Acceptance, Waiver, and Consent in FINRA proceedings?
This letter is a formal document used by FINRA in disciplinary actions. It outlines the charges against Richard Jackson, his acceptance of the findings, and agreement to the imposed sanctions without admitting or denying guilt.
4. How does this suspension affect investors and other financial advisors?
The suspension serves as a warning to investors about the risks of investment fraud. It also reminds other financial advisors about the consequences of misconduct and the importance of ethical behavior in the financial industry.
