In a shocking development to investors and industry watchers, the Financial Industry Regulatory Authority (FINRA) has sanctioned and barred former Momentum Independent Network Inc. broker Leslie Don Jackson – known alternatively as Les Jackson and Leslie Donn Jackson. The news of this disbarment has triggered concerns among investors, specifically those who might have sustained losses due to Jackson’s questionable sales practices.
## Former Broker Barred By FINRA
Leslie Jackson, who worked for Momentum Independent Network Inc. from September 19, 1991, to January 6, 2023, has been barred permanently by FINRA for violating regulatory rules. This action came after he purportedly engaged in unauthorized private securities transactions, which totaled a whopping $1,975,000. Such an activity bypassed the necessary approval from his employer, as required by industry standards.
According to FINRA, Jackson facilitated the selling of promissory notes from companies tied to construction financing. He recommended these investments to five investors, which included not just a family member, but also three firm customers. These investments led to purchases amassing a hefty $1,475,000. Jackson’s role in these transactions wasn’t just limited to recommendations – he informed investors about the notes, addressed their queries, assisted in filling out subscription documents, and coordinated payment deliveries to the issuers.
Adding a twist to the tale, Jackson was allegedly compensated by the aforementioned issuers. They reportedly paid him 3% of each investment on an annual basis, settled monthly. It’s worth noting that in compliance questionnaires, Jackson was suspected of falsely denying his participation in private securities transactions.
## Momentum Independent Network Inc. Severs Ties With Jackson
In the wake of these serious allegations, Momentum Independent Network Inc. distanced itself from Jackson, disaffiliating with him on December 9, 2022. The firm cited his violations of company policies as the primary reason for their official separation.
## Jackson Accused Of Breach Of Fiduciary Duty
Legal trouble doesn’t stop at the firm’s door for Jackson. On December 19, 2022, a client of Momentum Independent Network Inc. lodged a FINRA complaint against him. In their claim, the customer alleges that Jackson made unsuitable recommendations, committed a breach of fiduciary duty, and failed to uphold a contract. Consequently, they are blaming losses associated with a promissory note on him. Indeed, the stakes are high; the customer is seeking a compensation of $675,000 from either Momentum Independent Network Inc. or Jackson himself. This arbitration case continues to be pending resolution.
## Recouping Investor Losses
The question on many investors’ minds right now is – Can investment losses tied to Leslie Jackson be potentially recovered? The answer may hinge on various factors, including the specifics of an individual case and legal processes tied to investment loss recovery. Leslie Jackson and his former employers, including Momentum Independent Network Inc., deny any allegations of sales practice violations. Yet, given the gravity of the accusations and the monetary value involved, the spotlight on Jackson’s actions won’t fade easily. As the case continues to unfold, the financial world and impacted investors watch closely.