FINRA Sanctions LPL Stockbroker For Selling Away
John George Kallis of Louisville Kentucky a stockbroker formerly employed by LPL Financial LLC has been fined $5,000.00 and suspended for forty-five days from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity founded on findings that Kallis engaged in undisclosed private securities transactions while employed by LPL Financial. Letter of Acceptance Waiver and Consent No. 2018060587401 (July 1, 2020).
According to the AWC, in September of 2014, two investors had been solicited by Kallis to invest $25,000.00 each in an LLC that was intended for an investment in a minor league soccer team. The AWC stated that one of those investors held accounts with LPL Financial. Between September of 2014 and December of 2017, Kallis took part in two additional investment transactions relating to the LLC which concluded with customers investing $95,141.20 in sum. During this period, the investors had been provided with written investment material and subscription agreements from Kallis. They also received input from Kallis pertaining to their investment purchases.
FINRA stated that LPL Financial was never notified by Kallis about his engagement in the private securities transactions or otherwise asked if the stockbroker could partake in those activities. The AWC stated that Kallis was also administered a compliance questionnaire in which he falsely attested to not having engaged in any private securities transactions outside of the securities broker dealer’s auspices. FINRA found that Kallis’ conduct was violative of FINRA Rules 2010 and 3280 as well as National Association of Securities Dealers (NASD) Rule 3040.
Kallis was discharged by LPL Financial on November 16, 2018 for selling away from the securities broker dealer and engaging in undisclosed outside business activities. Since December 18, 2018, he has been associated with both Kestra Investment Services and Kestra Advisory Services.