MML Broker Caught Selling Away
Matthew Leon White of Little Rock Arizona a broker formerly employed by MML Investors Services LLC has been fined $5,000.00 by Arkansas based upon consenting to the Arkansas Securities Department’s findings that White sold away from his firm. Case No. S-18-0105 (Oct. 17, 2018).
According to the Order, prior to White having become registered with MML Investors Services, he established at least two real estate ventures. Those ventures were reportedly disclosed by White as outside business activities; however, he mischaracterized them as simple rental positions. Then, after joining MML Investors Services, White set up three additional real estate ventures. White evidently also mischaracterized those activities. The Order revealed that White’s conduct was discovered after leaving the firm and attempting to register an investment advisory.
The Order indicated that White had actually engaged in private securities transactions. Particularly, White reportedly established and promoted the real estate ventures, involving the firm’s customers as investors in the ventures. Apparently, White neither registered the ventures with SEC or sought an exemption from registration. Arkansas Securities Commissioner found that White’s failure to disclose the private securities transactions in a matter which complied with FINRA Rule 3280 was violative of Rule 308.01(x) of the Rules of the Arkansas Securities Commissioner.
White was discharged by MassMutual on May 30, 2018 founded on allegations that his outside business activities had not been property disclosed by him to the firm.