Erez Law is investigating claims related to Jason Daniel Sayles (CRD #4140191, St. Petersburg, Florida). Sayles recently submitted a FINRA Letter of Acceptance, Waiver and Consent (“AWC”) in which he was assessed a deferred fine of $15,000 and suspended from association with any FINRA member in any capacity for 10 months. The suspension is in effect from February 1, 2016, through November 30, 2016. See FINRA Case #2013037390601. “Sayles was associated with Genworth Financial Securities Corporation, LLC (“Genworth”), which was acquired by Cetera Financial Specialists, LLC (“Cetera”) in November 2012, as an Investment Company and Variable Contracts Products Representative (Series 6) from December 2007 until June 2013. Sayles resigned from Cetera while the firm was conducting an inquiry regarding his activities related to self-directed individual retirement accounts held away from the firm, according to FINRA. Thereafter, Sayles was associated with NFP Securities, Inc. (“NFP”), from June 2013 until February 2014. NFP permitted Sayles to resign citing a “business decision to discontinue associate based on activities conduced by representative outside broker dealer.” according to FINRA.
Without admitting or denying the findings, Sayles consented to the sanctions and to the entry of findings that he exceeded the scope of the permission he was given by his member firms to engage in the business of a CPA firm as an outside business activity. According to his CRD, Sayles was Director of Operations for Hajek’s CPAs P.C. beginning in December 2008. FINRA Rule 3270 (formerly NASD rule 3030) states that a broker may not engage in any outside business activity unless he timely has provided written notice to his/her brokerage firm. FINRA found that although Sayles was required to notify his firms of his involvement with the CPA firm in writing, in accordance with the firms’ procedures, he failed to do so for four years. FINRA also found that when Sayles updated his outside business activity form to include the CPA firm, his firms approved his involvement. Through the CPA firm, Sayles assisted customers in opening and administering self-directed IRAs, some of whom also were customers of Sayles’ firms, according to FINRA. FINRA further found that some of these customers transferred a total of nearly $1.8 million in cash and assets from their firm accounts to their self-directed IRA accounts, and that many of the customers held securities in their accounts. Sayles continued to engage in this business for approximately three months after his firms directed him to cease, according to FINRA.
In addition, FINRA found that Sayles was involved with other outside business activities which he failed to disclose in writing to his firms, despite FINRA Rule 3270 and his firms’ written supervisor procedures (“WSPs”). FINRA found that Sayles also failed to properly disclose his involvement with outside business activities to a new member firm upon association, and that Sayles participated in private securities transactions effected in customers’ self-directed IRAs totaling more than $2.3 million that were done away from his firms. Sayles was required to notify his firms in writing of his participation prior to participating, but he failed to do so, according to FINRA.
Genworth, Cetera, and NFP were responsible for supervising Sayles’ activities during the time that he was registered with the firms. Thus, Genworth, Cetera, and NFP may be liable for investment losses or other financial irregularities suffered by Sayles’ customers.
If you were a client of Genworth Financial Securities Corporation, LLC, Cetera Financial Specialists, LLC, NFP Securities, Inc., or Jason Sayles and have experienced investment losses or financial irregularities, then please call us at 888-840-1571 or complete our “contact form.” Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies.