FINRA Sanctions PFS Stockbroker In Loan Referral Kickback Scheme
Keith Trevor Rich of Marietta Georgia a stockbroker formerly employed by PFS Investments Inc. and JP Morgan Securities LLC has been fined $5,000.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based on findings that Rich engaged in an undisclosed outside business activity while employed by PFS Investments and JP Morgan Securities. Letter of Acceptance Waiver and Consent No. 2019063012001 (Jan. 30, 2020).
According to the AWC, a third-party company who provided business loans had enlisted Rich as a loan referral arrangement. The AWC stated that business loans had been solicited by Rich when he was associated with PFS Investments and JP Morgan Securities. The stockbroker had an arrangement in which he would be provided up to six percent on loans that he closed. Rich was expected to furnish written notice to those securities broker dealers before he solicited loans. He neglected to notify them or obtain permission. FINRA determined that Rich’s conduct was violative of FINRA Rules 2010 and 3270.
On June 11, 2019, Rich was discharged by JP Morgan based upon accusations of his outside business activities.