- February 9, 2020
- National Securities Corp.
Jason Hawke (CRD # 4177415) was a Financial Advisor at National Securities Corp. in Meridian, Idaho. Jason Hawke has been in the securities industry since 2000 and previously worked at Newbridge Securities Corp and JP Turner & Co.
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), in April 2019, the Idaho Department of Finance sanctioned Jason Hawke, suspending him for 30 days and fining him $10,000. According to the sanction, “MR. HAWKE, AS AGENT OF NATIONAL SECURITIES CORPORATION (“NSC”), VIOLATED NSC’S WRITTEN POLICIES AND PROCEDURES AND FINRA RULE 3280 WHEN HE FAILED TO PROVIDE NOTICE TO NSC PRIOR TO ENGAGING IN PRIVATE SECURITIES TRANSACTIONS.”
Just prior to the regulatory sanction, Jason Hawke was terminated by National Securities Corp. for engaging in undisclosed private securities transactions in violation of FINRA rules and firm policy.
Unapproved private securities transactions are referred to in the industry as “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.
In addition, Jason Hawke has been the subject of eight customer complaints during his career, alleging various sales practice misconduct. Among the complaints, include the following:
• June 2014—”MISREPRESENTATION, UNSUITABILITY, NEGLIGENCE, COMMON LAW FRAUD AND BREACH OF FIDUCIARY DUTY.” The dispute was settled for $17,500.
• December 2012—”ALLEGES UNSUITABILITY IN CONNECTION WITH THE PURCHASE OF INLAND WESTERN REIT IN 2004.” The dispute was settled for $2,000.
• June 2011—”UNSUITABLE INVESTMENTS, BREACH OF FIDUCIARY DUTY, COMMON LAW FRAUD, VIOLATION OF SECURITIES EXCHANGE ACT AND VIOLATION OF IDAHO SECURITIES LAWS.” The dispute was settled for $25,000.
• March 2010—”NEGLIGENCE, UNSUITABILITY, BREACH OF FIDUCIARY DUTY, MISREPRESENTATION AND FAILURE TO PERFORM DUE DILIGENCE.” The dispute was settled for $50,000.
For a copy of Jason Hawke’s CRD, click https://brokercheck.finra.org/individual/summary/4177415#disclosuresSection.
Financial advisors have a legal and regulatory obligation to recommend only suitable investments that are appropriate for their clients’ needs and objectives. Their employing brokerage firm has a legal and regulatory obligation to supervise the Financial Advisors’ sales practices and dealings with clients. To the extent any of these duties are breached, the customer may be entitled to a recovery of his or her investment losses.
The Wolper Law Firm represents investors nationwide in securities litigation and arbitration on a contingency fee basis. Matt Wolper, the Managing Principal of the Wolper Law Firm, 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.