FINRA Sanctions J.P. Morgan Stockbroker For Selling Away
Robert Patrick Pachciarz of Naperville Illinois a stockbroker formerly employed by J.P. Morgan Securities LLC has been fined $5,000.00 and suspended for six months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity supported by findings that Pachciarz took part in undisclosed private securities transactions involving the sale of a $500,000.00 note to a customer of J.P. Morgan Securities. Letter of Acceptance Waiver and Consent No. 2018059912001 (Sept. 12, 2019).
According to the AWC, in June of 2018, Pachciarz and a customer of J.P. Morgan Securities LLC had discussed a private investment. The customer was subsequently introduced to a private company’s founder by Pachciarz so that the customer could invest in that company. The AWC indicated that a $500,000.00 note had been subsequently purchased by the customer through Pachciarz’s involvement.
FINRA stated that Pachciarz was involved in the customer’s transactions through the stockbroker’s participation in investment discussions; attendance at meetings relating to the customer’s investment; facilitation of the purchase of that investment; and party to the execution of the documents necessary to effect the customer’s purchase.
The AWC stated that stockbrokers were required under the firm’s supervisory procedures to first notify the firm and procure authorization before taking part in any transactions away from the firm. This restriction was effective regardless of whether the stockbroker stood to earn compensation through the securities transaction. Pachciarz violated J.P. Morgan Securities’ procedures by failing to notify the securities broker dealer about the private securities transaction. FINRA indicated that J.P. Morgan neither knew nor authorized Pachciarz’s participation in the $500,000.00 note sale. FINRA determined that Pachciarz’s undisclosed and unapproved transaction was violative of FINRA Rules 2010 and 3280.
Pachciarz was registered with J.P. Morgan Securities LLC between October 1, 2012 and September 21, 2018.