Alexander Capital Stockbroker Charged With Obstructing

Peyton Nelson Jackson, of New York, New York, a stockbroker formerly registered with Alexander Capital, L.P., and Legend Securities, Inc., has been charged by Financial Industry Regulatory Authority in a Complaint which alleges that Jackson failed to cooperate in a FINRA investigation into allegations that he effected fraudulent transactions in customer accounts. Department of Enforcement v. Peyton Nelson Jackson, No. 2016049252901 (Apr. 18, 2017).

According to the Complaint, FINRA launched an investigation into misconduct committed by Jackson during the time he was associated with his former firms, Alexander Capital, L.P., and Legend Securities, Inc. Jackson was alleged to have made misrepresentations to customers, effected transactions in the their accounts which were not suitable, and committed fraud. Specifically, from 2015 to 2016, Jackson was identified in eight customer initiated investment related disputes containing allegations of Jackson’s misconduct, in which customers’ allegations included breach of contract, misrepresentation, unsuitability, and fraud.

The Complaint alleged that on September 6, 2016, Jackson received a letter from FINRA, based on Rule 8210, which called upon Jackson to provide recorded testimony concerning the allegations of his sales practice violations. Without explanation, Jackson reportedly failed to testify on September 23, 2016. The Complaint stated that two additional letters were sent by FINRA on September 27, 2016, wherein Jackson was asked to provide information and documentation, which included his brokerage and personal account data, as well as provide recorded testimony as formerly requested. The Complaint stated that Jackson failed to respond to FINRA personnel on the due dates.

Jackson then apparently signed documentation on November 3, 2016, indicating that he received FINRA’s third request; however, he did not respond by the due date of November 18, 2016. Finally, on the fourth try, counsel for Jackson confirmed that Jackson received FINRA’s requests for documentation and information, as well as FINRA’s request for testimony. The Complaint stated that Jackson never complied with FINRA’s requests. FINRA alleged that Jackson’s conduct was violative of FINRA Rule 2010 and 8210.

Financial Industry Regulatory Authority (FINRA) Public Disclosure reveals that Jackson has been identified in thirteen customer initiated investment related disputes containing allegations of Jackson’s misconduct while employed with McKim Capital, Inc., Dawson James Securities, Inc., Legend Securities Inc., Alexander Capital, LP, Morgan Stanley, Tamaron Investments, Inc., and A.G. Edwards & Sons, Inc.

In addition to the customer disputes referenced in FINRA’s Complaint, on February 2, 2002, a customer initiated investment related arbitration claim involving Jackson’s conduct was settled for $100,000.00 in damages based upon allegations that Jackson defrauded the customer, breached his fiduciary duties, breached his contractual duties, omitted information concerning the customer’s margin account, negligently managed the customer’s investment portfolio, churned the customer’s account, and effected unsuitable, unauthorized and excessive trades. From February 15, 2002, to February 22, 2002, two customer initiated investment related written complaints regarding Jackson’s activities were resolved for a total of $192,500.00 in damages based upon allegations of unsuitability pertaining to equity transactions effected in the customers’ accounts.

Further, on December 10, 2015, a customer initiated investment related arbitration claim involving Jackson’s conduct was settled for $3,500.00 in damages based upon allegations that Jackson breached his fiduciary obligations to the customer due to his investment recommendations having involved overconcentrating the customer’s assets in risky investments.

Since October 26, 1989, Jackson has been associated with eight different broker dealers, five of which have been expelled by securities regulators for violation of federal securities laws or are otherwise defunct.  #cockroach

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