Securities Equity Stockbroker Investigated For Fee Omissions
John Randall Gladden of El Cajon California a stockbroker formerly registered with Securities Equity Group is the subject of an Idaho Department of Insurance Investigation that commenced on February 27, 2018 into Gladden’s activities following the Department’s receipt of a customer complaint where the customer alleged that the negative effect of management fees on the customer’s insurance policy riders had not been properly communicated by Gladden.
This is not the first time that Gladden has been subject of regulatory action for alleged misconduct. In particular, Gladden been fined $15,000.00 and suspended for twelve months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon a FINRA Office of Hearing Officers Order Accepting Offer of Settlement containing findings that Gladden effected securities transactions outside Securities Equity Group’s auspices during the time that he was employed by the securities broker dealer. Department of Enforcement v. John Randall Gladden Disciplinary Action No. 2014038996201 (July 19, 2016).
According to the Order, private securities transactions had been executed by Gladden without him either notifying Securities Equity Group or procuring authorization from the securities broker dealer. Specifically, two funds were established by Gladden for purposes of loaning certain churches funds to refinance their real estate loans. More than $2,100,000.00 had been accumulated by Gladden for this purpose. The Order stated that he engaged in management activities on behalf of those funds. Gladden participated in these private securities transactions and management activities while informing Securities Equity Group that he complied with policies which prohibited them. FINRA found his conduct violative of FINRA Rules 2010, 3270 and National Association of Securities Dealers (NASD) Rules 3030 and 3040.
On December 23, 2016, Gladden’s stockbroker registration in the State of Arizona was revoked according to an Arizona Corporation Commission Securities Division Order based on findings of Gladden being sanctioned from FINRA. Docket No. S-20998A-16-0478 (Mar. 22, 2017).
Also, on February 27, 2017, Gladden was subject of an Alaska Division of Insurance Investigation based upon allegations that a customer filed a complaint alleging that misrepresentations and omissions had been made by Gladden concerning a Jackson National Life annuity sold to the customer; and that the customer was charged management fees without the customer’s consent. Gladden was subsequently prohibited from, inter alia, being a stockbroker or investment adviser in the State of Alaska according to a Consent Order containing findings that Gladden distributed investment materials to Alaska residents when he was not registered in the state; conduct violative of AS 45.55.030(a). In the matter of J. Randall Gladden Order No. 17-204-S (Oct. 10, 2017).
FINRA Public Disclosure additionally reveals Gladden is referenced in a customer initiated investment related complaint on January 19, 2018 in which the customer sought $150,000.00 in damages based upon accusations that the customer was placed into an unsuitable variable annuity when Gladden was associated with Securities Equity Group.
Gladden’s employment with Securities Equity Group was terminated on March 15, 2016.