FINRA fined and suspended former JP Morgan Securities LLC broker Gary R. Dennis for engaging in an outside business activity and suspended Shannon S. Hampton for her role in a check kiting-scheme involving three accounts she maintained at JP Morgan Chase Bank and a federal credit union.
FINRA AWC #2013037221001 (Dennis)
According to the investigation, Dennis allegedly accepted $500 from a customer as a processing fee for initiating a limited liability company application for this client. When JP Morgan terminated Dennis' registration, the firm cited the acceptance of this fee as its reason, claiming that Dennis failed to disclose this unapproved outside business activity in violation of industry rules.
The findings furthermore state that when questioned by Chase about this activity in May 2013, Dennis stated verbally that he had not processed the paperwork for the LLC and had not received money from his client when, allegedly, he had.
Dennis, who denied the alleged actions, but consented to FINRA's findings, most recently was registered with Transamerica Financial Advisors, but separated from that firm shortly after the AWC resolved in a five-month suspension and $10,000 fine on January 28, 2015.
Hampton, meanwhile, allegedly wrote two checks to "cash" totaling $2,675 against her personal bank account that she purportedly knew contained insufficient funds to cover that amount, depositing each check into a retail bank checking account.
The findings state she attempted to benefit from the pending "float" on the checks until other funds became available to her, known as check kiting, which is a violation of industry rules. Check kiting is also illegal and can be prosecuted under federal laws pertaining to bank fraud.
JP Morgan discharged Hampton the day before FINRA initiated its complaint against her.
If you have invested with former JP Morgan associated Gary R. Dennis or Shannon S. Hampton, or with any broker or financial adviser whose unethical conduct has proven harmful to your investments or interests, please call The Law Offices of Jonathan W. Evans & Associates at (800) 699-1881 for investigation and consultation.