FINRA Suspends & Fines Broker Brian Pearce after Allegations of Selling Away
According to public disclosures from the Financial Industry Regulatory Industry (FINRA), the regulator has suspended financial advisor Brian Stanley Pearce (CRD # 1334784) from the securities industry for allegations of private securities transactions also known as “selling away.”
Pearce allegedly sold Future Income Payments (FIP), a structured cash flow investment, without approval from his member firm, according to a Letter of Acceptance, Waiver and Consent. FINRA’s findings stated that Pearce allegedly solicited investors to purchase $607,730 in Future Income Payments, a company that purportedly purchased pensions at a discount from pensioners and then sold a portion of those pensions as a pension stream to investors. Future Income Payments generally promised investors a seven to eight-percent rate of return on their investment.
Pearce reportedly received a total of $24,309 in commissions in connection with his sales of the securities, even though his member firm prohibited its registered representatives from participating in private securities transactions without prior written approval from the firm.
In addition to the seven-month suspension, Pearce was reportedly ordered to pay a $5,000 find and $9,723 disgorgement.
According to his broker report, Brian Pearce was affiliated with the following firm during his career in the securities industry, among others.
06/20/2019 – 05/11/2021, WORLD EQUITY GROUP, INC. (CRD#:29087), Winter Haven, FL
08/02/2018 – 06/20/2019, TAYLOR CAPITAL MANAGEMENT INC. (CRD#:43559), Winter Haven, FL
11/07/2012 – 08/03/2018, FSC SECURITIES CORPORATION (CRD#:7461), WINTER HAVEN, FL
04/27/1998 – 11/07/2012, SECURITIES SERVICE NETWORK, INC. (CRD#:13318), WINTER HAVEN, FL
Pearce’s broker report further indicates he has 3 customer complaints filed against him, with one currently pending from June 2021, for allegations that he recommended “structured cash flows administered by Future Income Payments, LLC., which was not sold through the firm.”
The White Law Group is investigating the liability that Pearce’s former employer may have for his actions in regards to his outside business activities.
When a FINRA registered representative conducts business outside the scope of the brokerage firm where they are registered, the act can be considered “selling away.” Some brokers, looking to supplement their income, will go outside the traditional market, trying to find other products to push.
If a registered broker “sells away” from their firm, the brokerage firm may still be liable for negligent supervision of their broker representative and may be responsible for investment losses in a FINRA dispute resolution claim.
If you have suffered losses investing with Brian Pearce, the securities attorneys at The White Law Group may be able to help you. For a free consultation with a securities attorney, please call (888) 637-5510.
The foregoing information, which is all publicly available, is being provided by The White Law Group.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Seattle, Washington. For more information, please visit our website, www.whitesecuritieslaw.com.