The Financial Industry Regulatory Authority (FINRA) suspended broker James W. Carney and fined him $5,000 for failing to disclose outside business activities to his employing firm, RBC Capital Markets, LLC.
To prevent conflicts of interest, protect investors, and prevent potential fraudulent financial schemes, FINRA Rule 3030 prohibits any registered representative associated with a member firm from receiving business-related income from any other person or firm, unless the representative or principal informed his or her primary firm about this business relationship.
FINRA alleged that Carney entered into four outside business activities while associated with RBC between 2008 and 2010. Two were debt management businesses while a third was a trust and the fourth was a beer brewing company. All four activities were business activities which Carney timely failed to disclose to his employer, RBC. Carney accepted FINRA'S findings and suspension.
Though not all all outside business ventures are indicative of illicit activity, the potential for abuse to the detriment of investors can be significant, which is one reason why Rule 3030 exists and was recently amended as Rule 3270.
If you invested with James W. Carney, Jr. or any broker whose failure to disclose outside business activities has proven harmful to your investments or interests, please call The Law Offices of Jonathan W. Evans & Associates at (800) 699-1881 for an investigation and consultation.