- February 8, 2021
- JP Morgan Securities
Jasmit Singh (CRD#: 6483304), an Investment Advisor previously associated with J.P. Morgan Securities, LLC, entered the securities industry in 2017. He ended his employment with J.P. Morgan Securities, LLC on February 18, 2020.
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), in January 2020, FINRA suspended Jasmit Singh for a period of seven months beginning on February 1, 2021, and levied against him a civil and administrative penalty/fine of $10,000 and disgorgement of $5,500.
The FINRA sanction states, “Without admitting or denying the findings, Singh consented to the sanctions and to the entry of findings that he failed to provide written notice to his member firm prior to marketing apparel, vaping products, and event promotion services through e-commerce companies he co-owned, and prior to performing consulting services for a small business that was not a customer of the firm. The findings stated that Singh received compensation in connection with these outside business activities (OBA). In addition, Singh submitted annual compliance questionnaires to the firm in which he stated inaccurately that he had no OBAs to disclose. The findings also stated that Singh did not provide notice to or receive approval from his firm prior to participating in private securities transactions. Singh solicited investors, who were not customers of the firm, to invest in private placement offerings through a venture capital fund. Singh communicated with the investors verbally and in writing to inform them about the offerings and encourage them to invest, introduced them to and arranged discussions with a general partner of the fund, and facilitated the transactions by sending the investors subscription agreements and wiring instructions that he received from the general partner. Singh received finder’s fees in connection with these transactions.”
For a copy of Jasmit Singh’s FINRA disciplinary action details, click here.
For a copy of Jasmit Singh’s FINRA BrokerCheck, click here.
Often times, Financial Advisors who participate in private securities transactions are said to be “selling away.” FINRA strictly prohibits financial advisors from “selling away” or selling securities and investments to clients that are not offered by the brokerage firm with which they are employed. For example, it is illegal and a violation of industry rules for a financial advisor to recommend or even suggest that a client invest in the financial advisor’s own business or a business operated by his or her friends or family. It is not necessary that the financial advisor earn any compensation for recommending an outside investment.
The purpose behind this prohibition is to ensure that a financial advisor only offers to sell securities that have been vetted by his or her employer brokerage firm through a rigorous due diligence process. Most brokerage firms have an approved list of investments, products, and research that can be provided or made available to clients. Any deviation by the financial advisor from the approved product list may constitute selling away.
The Wolper Law Firm, P.A. represents investors nationwide in securities litigation and arbitration on a contingency fee basis. Matt Wolper, the Managing Principal of the Wolper Law Firm, P.A., is a trial lawyer who has handled hundreds of securities cases during his career involving a wide range of products, strategies and securities. Prior to representing investors, he was a partner with a national law firm, where he represented some of the largest banks and brokerage firms in the world in securities matters. We can be reached at 800.931.8452 or by email at firstname.lastname@example.org.