Harrison
engaged in private securities transactions without providing
notice, written or otherwise,
to his member firm.
Harrison facilitated
investments in bonded life
contracts an entity issued to his firm’s customers by bringing the
investment opportunity
to the customers’ attention and referring them to the entity’s
salesperson. The customers
subsequently invested a combined total of $150,000 with the
entity, and Harrison received
fees in the amount of $18,000 from the entity for the referrals,
which were paid in the
form of checks made payable to Harrison’s relative. Prior
to referring his firm’s customers to the entity, Harrison had been
told that the firm had
prohibited its registered representatives from offering and
selling the entity’s products due
to concerns that the firm had about the products. Harrison
ignored the prohibition, made several customer referrals to the
entity, and collected
undisclosed referral fees. The entity’s investment subsequently
defaulted and all of the
customers’ funds were lost.
Harrison engaged in
an outside business
activity in that he received $2,500 in undisclosed compensation
for a customer referral to a
life settlement issuer business, without having provided notice to
his firm.