FINRA Bars Adviser for Nearly $2 Million in Securities Transactions without Approval

The Financial Industry Regulatory Authority barred Leslie D. Jackson, an adviser who participated in 19 private securities transactions totaling $1.98 million without telling his broker-dealer, Momentum Independent Network.

Between approximately February 2018 and August 2022, FINRA says Jackson participated in the sale of promissory notes issued by entities purportedly engaged in a business that provided financing to construction companies.

Jackson recommended the investments to five investors, including one family member, who ultimately purchased an aggregate $1.48 million of the issuers’ promissory notes. Three of the investors were firm customers of Dallas-based Momentum. According to FINRA, Jackson also personally purchased notes totaling $500,000.

FINRA says Jackson participated in these investments by telling the investors about the notes, answering questions about the investments, helping the investors complete the subscription documents, and collecting the payments for the investments to provide to the issuers. Jackson received periodic payments from the issuers in amounts equal to 3% of each investment per year during their respective terms, paid monthly.

However, Jackson did not disclose his involvement in the purchase or sale of the promissory notes to Momentum, or seek or obtain Momentum’s approval to engage in the transactions. FINRA says Jackson also falsely responded to questions about whether he had participated in private securities transactions on three compliance questionnaires between 2019 and 2022. Therefore, Jackson violated FINRA Rules 3280 and 2010.

Jackson consented to a bar from associating with any FINRA member in all capacities.

Momentum filed a U5 termination notice in January of this year. According to BrokerCheck, Jackson had worked with Momentum for 31 years.

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