FINRA Sanctions NMS Stockbroker For Selling Away
Jeffrey Hall Heely of Beverly Hills California a stockbroker formerly registered with NMS Capital Advisors LLC has been fined $5,000.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon findings that he engaged in undisclosed outside business activities. Letter of Acceptance Waiver and Consent No. 2019063224501 (Apr. 21, 2020).
According to the AWC, between January of 2019 and May of 2019, during the time that Heely was associated with NMS Capital Advisors, he established MainBrace Associates LLC without notifying the securities broker dealer. On behalf of MainBrace, Heely contracted with another company regarding the issuance of senior secured notes to investors through a private placement offering. The AWC stated that Heely was compensated for the work he performed.
FINRA indicated that NMS Capital Advisors was left in the dark about Heely’s work through MainBrace since Heely falsely relayed to its compliance personnel that he was not involved in any outside business activities. Heely’s conduct was violative of FINRA Rules 2010 and 3270.
FINRA Public Disclosure also reveals that on September 23, 2019, a customer filed an investment related complaint involving Heely’s conduct in which the customer requested $40,000.00 in damages based upon allegations that the customer was solicited by Heely for a private placement transaction to be effected outside the auspices of the securities broker dealer. According to the complaint, an unauthorized engagement agreement had been used to effect the transaction. Funds had allegedly been accepted without the firm’s knowledge.
Heely’s registration with NMS Capital Advisors has been terminated as of May 20, 2019.