Former LPL Financial financial advisor, James C. Bylenga (Bylenga), recently settled allegations with the Financial Industry Regulatory Authority (FINRA) following an enforcement action (No. 2018060282201). FINRA investigated Bylenga after LPL initiated an internal review concerning personal loans with a client and discharged him from the firm. As a consequence of Bylenga’s failure to cooperate with FINRA’s investigation, FINRA permanently barred him from the financial industry.
Bylenga (FINRA CRD No. 705143) entered the financial industry in 1980 as a general securities representative. Bylenga worked for various firms during his career, including at Comerica Securities from 2009 to 2016, and then at LPL Financial, LLC (“LPL”) from 2016 to 2018. LPL discharged Bylenga in August 2018 and then opened an internal investigation concerning his business practice. Bylenga is no longer associated with any FINRA-member; however, he remains subject to FINRA’s jurisdiction.
FINRA’s Department of Enforcement initiated an investigation into Bylenga’s alleged misconduct. FINRA specifically investigated whether Bylenga entered into personal loan(s) with a customer. FINRA sent Bylenga a request to provide on the record testimony pursuant to FINRA Rule 8210. According to FINRA, Bylenga failed to cooperate with the investigation in any discernable manner.
Based upon the foregoing alleged misconduct, FINRA asserted Bylenga violated FINRA Rules 2010 and 8210. Specifically, FINRA Rule 8210 authorizes FINRA, in the course of its investigations, to require persons associated with a FINRA member to “provide information orally, in writing, or electronically . . . with respect to any matter involved in the investigation...” Here, Bylenga failed to provide information in response to FINRA’s request, thereby violating FINRA Rule 8210.
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