FINRA’s Department of Enforcement investigated Jackson and alleged he solicited investors to purchase approximately $2 million worth of Equity Indexed Annuities between January 2010 and June 2013. FINRA alleged that several of the individual investors were also JP Morgan customers; however, the investments were not made in the customers’ JP Morgan accounts. During the relevant time period, JP Morgan’s policies and procedures prohibited firm employees from engaging in outside business activities without prior written notice and approval. According to FINRA, Jackson never disclosed these outside investments to JP Morgan.
Based upon the foregoing misconduct, FINRA alleges Jackson violated NASD Conduct Rules 3030 (now FINRA Rule 3270), as well as FINRA Rule 2010. Specifically, NASD Rule 3030 states no FINRA registered person may be an employee or receive compensation for outside business transactions unless he or she has provided prior written notice to their employer. Outside business transactions and selling away are prohibited activities because they serve to undercut the supervisory system implemented by FINRA-member firms and FINRA itself to protect the investing public.
Lufrano Law, LLC is a national securities litigation firm and has experience representing investors who have investment disputes with brokers and broker-dealers. If you lost money investing with in Equity Indexed Annuities with Jackson while JP Morgan employed him you may be able to recover your losses through FINRA arbitration. Our firm only receives a fee if you recover money. Please contact one of our attorneys at (800) 627-2179 to schedule a free consultation.