Erez Law is investigating claims regarding Jon “Larry” Cox (CRD # 2073950, Knoxville, TN), who has been named a respondent in a FINRA complaint charging he failed to respond to FINRA requests for information following his termination from employment with LPL Financial, LLC. Cox became registered with LPL Financial in May 2001. Cox was a registered representative and registered principal in Knoxville, Tennessee. LPL terminated Cox on January 22, 2014 and the Form U5 filed by LPL with FINRA to terminate Cox’s registration stated that the reason as “violation of firm policy regarding outside business activities.”
Cox conducts business through a D/B/A known as Investment and Retirement Services Group, according to his FINRA CRD. Cox’s FINRA CRD also states that he was a sales agent for Proton Power, Inc., a company for making renewable energy equipment, which allegedly produces cheap hydrogen gas.
While the details of FINRA’s investigation are pending, the reason provided for Cox’s termination indicates a possible “selling away” securities violation. A broker may only sell securities with the knowledge and approval of his or her firm. When a broker sells securities without processing the order through the firm and without the firm’s permission or knowledge, this violates FINRA rules. Federal and state law define securities broadly. Therefore, even products such as leasing arrangements or promissory notes, may be securities which require firm approval. Selling away often involves investment securities that are in the form of a private placement or other non-public investment.
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, LPL Financial may be liable for investment or other losses suffered by Cox’s customers.
If you were a client of Jon “Larry” Cox or LPL Financial, LLC, and have suffered investment losses or financial irregularities, please contact Erez Law to explore your legal options. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies. To learn more, please call us at 888-840-1571 or complete our “contact form.”