National investment loss lawyers KlaymanToskes is investigating former financial advisor Howard Crockett III (CRD# 3022729) following a FINRA disciplinary action involving undisclosed outside business activities and approximately $200,000 in compensation, as well as a separate pending customer complaint alleging $132,000 in questionable payments while he was associated with NYLife Securities LLC.
According to FINRA’s October 29, 2026 Letter of Acceptance, Waiver and Consent (“AWC”), Crockett engaged in an undisclosed outside business activity involving a company owned by a NYLife Securities customer. FINRA found that Crockett received approximately $200,000 in commissions and other compensation for consulting services and failed to accurately disclose his outside business activities to the brokerage firm. FINRA suspended Crockett for two months and fined him $5,000 for violations of FINRA Rules 3270 and 2010.
Separately, FINRA BrokerCheck reports one pending customer complaint seeking $132,000 in damages, alleging that a customer issued nine checks between October 2024 and September 2025 for payments unrelated to any identifiable product or service.
Investors who suffered financial losses involving outside business activities, questionable financial transactions, or other recommendations made by Howard Crockett through NYLife Securities are encouraged to contact KlaymanToskes at 888-997-9956 or investigations@klaymantoskes.com for a free and confidential consultation to discuss their potential recovery options.
FINRA Suspends Howard Crockett for Undisclosed Outside Business Activities
On October 29, 2026, FINRA accepted a Letter of Acceptance, Waiver and Consent, Case No. 2026900000201, finding that Howard Crockett engaged in outside business activities without providing the required disclosure to NYLife Securities.
According to FINRA, between September 2024 and September 2025, Crockett provided consulting services to a company owned and operated by a customer of NYLife Securities.
His activities included arranging a loan, brokering a health insurance policy, and providing financial advice concerning the company’s business operations.
FINRA found that Crockett received approximately $200,000 in commissions and other compensation for these outside consulting services.
Despite NYLife Securities’ requirement that registered representatives provide prior written notice of outside business activities, Crockett did not disclose his involvement with the company until September 2025.
FINRA further found that Crockett inaccurately certified on a November 2024 compliance questionnaire that he was complying with the firm’s outside business activity disclosure requirements.
As a result, FINRA determined that Crockett violated FINRA Rule 3270, governing outside business activities, and FINRA Rule 2010, which requires registered representatives to observe high standards of commercial honor and just and equitable principles of trade.
Crockett consented to a two-month suspension from associating with any FINRA member firm in all capacities, effective October 29 through December 28, 2026, and a $5,000 fine. He accepted the AWC without admitting or denying FINRA’s findings.
Undisclosed outside business activities can raise significant concerns when financial professionals engage in transactions involving brokerage customers without the firm’s knowledge or required oversight.
KlaymanToskes has extensive experience representing investors that suffered losses in relation to outside business activities conducted by their financial advisors.
Investors who conducted financial transactions or participated in outside business arrangements involving Howard Crockett are encouraged to contact KlaymanToskes for a free and confidential case evaluation. Our experienced securities attorneys can review the circumstances surrounding the transactions and determine whether potential claims may exist against the responsible parties.
FINRA’s Letter of Acceptance, Waiver and Consent: Howard Crockett
Howard Crockett Customer Complaint Alleges $132,000 in Unexplained Payments
According to FINRA BrokerCheck, Howard Crockett’s disclosure history includes a pending customer complaint received on September 21, 2026, involving allegations concerning payments made by a NYLife Securities customer.
The customer’s co-conservator alleges that the customer issued nine checks between October 2024 and September 2025, totaling $132,000, for payments unrelated to any identifiable product or service.
The complaint seeks $132,000 in alleged damages and remains pending.
NYLife Securities reported that the complaint concerns the same activity that was under review when Crockett resigned from the firm.
These allegations raise important questions concerning financial transactions between brokerage customers and their financial professionals, including the nature of the payments, the services allegedly provided, and whether the transactions were appropriately disclosed and supervised.
Financial arrangements involving brokerage customers and outside business activities can present significant risks when the transactions occur outside the brokerage firm’s established supervisory procedures.
The pending customer complaint is separate from FINRA’s final disciplinary action.
Investors who made payments to Howard Crockett or participated in financial arrangements outside their NYLife Securities accounts are encouraged to contact KlaymanToskes. Our securities attorneys can review the transactions, communications, and relevant financial records to discuss potential legal options.
Understanding Undisclosed Outside Business Activities and FINRA Rule 3270
Outside business activities (“OBAs”) generally involve business activities conducted by financial professionals outside the scope of their relationship with the brokerage firm where they are registered.
These activities may include consulting services, business ownership, employment with outside companies, or other compensated business arrangements.
Under FINRA Rule 3270, registered representatives must provide prior written notice to their brokerage firms before engaging in certain outside business activities.
This requirement allows brokerage firms to evaluate whether an outside activity creates potential conflicts of interest, interferes with the representative’s responsibilities, or should be subject to additional supervision.
Outside business activities may become particularly concerning when a financial professional conducts business with existing brokerage customers.
Customers may reasonably associate the financial professional’s outside activities with the brokerage firm, particularly when the relationship developed through the firm’s financial services business.
Undisclosed outside business activities can expose investors to financial risks when transactions are conducted without appropriate oversight, disclosures, or safeguards.
Certain outside transactions may also involve private securities transactions, commonly referred to as selling away, which are subject to separate FINRA requirements.
FINRA’s disciplinary action against Crockett specifically involved violations of Rules 3270 and 2010 concerning undisclosed outside business activities.
Investors who suffered financial harm involving undisclosed outside business activities or financial arrangements with their brokers are encouraged to contact KlaymanToskes. Our experienced securities attorneys can evaluate whether the circumstances may support a claim involving brokerage firm supervision, misrepresentations, negligence, or other actionable conduct.
NYLife Securities Permitted Howard Crockett to Resign During Investigation
According to FINRA’s October 29, 2026 AWC, NYLife Securities filed a Form U5 in February 2026 reporting that Crockett was permitted to resign while the firm was investigating concerns involving funds received from an elderly customer and an unapproved outside business activity.
The reported investigation concerned Crockett’s conduct while associated with NYLife Securities, where he had been registered since December 2023.
The subsequent FINRA disciplinary action established that Crockett failed to provide the required notice of his outside consulting activities and inaccurately certified compliance with the firm’s disclosure requirements.
These developments highlight the importance of brokerage firms maintaining effective procedures to identify and address outside business activities involving their registered representatives and customers.
KlaymanToskes represents investors nationwide in claims involving failure to supervise, financial advisor misconduct, material misrepresentations and omissions, and improper financial transactions.
Investors who suffered financial losses involving Howard Crockett or other NYLife Securities financial professionals are encouraged to contact KlaymanToskes for a free and confidential consultation. Our attorneys can evaluate the circumstances surrounding the transactions and discuss potential recovery options.
NYLife Securities’ Responsibility for Outside Business Activities and Customer Protection
Brokerage firms have important responsibilities concerning the supervision of their registered representatives, review of outside business activities, identification of conflicts of interest, and protection of customer interests.
Under FINRA Rule 3110, brokerage firms must establish and maintain supervisory systems reasonably designed to achieve compliance with applicable securities laws and FINRA rules.
Under FINRA Rule 3270, brokerage firms receive notice of outside business activities so they can assess the nature of the activity, potential conflicts, and any supervisory measures that may be necessary.
Brokerage firms should maintain reasonable procedures to identify potentially undisclosed outside business activities and respond to warning signs involving financial transactions between their representatives and customers.
These responsibilities are particularly important when financial professionals receive substantial compensation from outside companies or participate in financial arrangements involving brokerage customers.
According to FINRA, Crockett received approximately $200,000 in compensation for consulting services involving a company owned by a NYLife Securities customer without providing the required disclosure during much of the period.
FINRA also found that Crockett inaccurately certified his compliance with the firm’s outside business disclosure requirements.
Investors who suffered losses involving outside financial arrangements may have potential claims against a brokerage firm if applicable supervisory failures contributed to their financial harm.
KlaymanToskes represents investors nationwide in claims involving negligence, breach of fiduciary duty, failure to supervise, misrepresentations and omissions, and unauthorized private securities transactions.
Investors who experienced financial losses involving NYLife Securities representatives or undisclosed outside business activities are encouraged to contact KlaymanToskes for a free and confidential consultation. Our experienced securities attorneys can review the transactions and determine whether there may be grounds to pursue claims against responsible financial professionals or brokerage firms.
Howard Crockett’s Employment and Disclosure History
According to FINRA BrokerCheck, Howard Crockett III (CRD# 3022729) was most recently registered with NYLife Securities LLC (CRD# 5167) from December 2023 through February 2026. His reported employment location was Germantown, Tennessee.
Crockett’s previous securities industry registrations include NYLife Distributors LLC from October 2019 through November 2023, Global Atlantic Distributors, LLC from February 2018 through October 2019, and Nationwide Investment Services Corporation from January 2014 through January 2018.
His earlier registrations include Jackson National Life Distributors, MBSC Securities Corporation, OppenheimerFunds Distributor, Morgan Stanley DW, and Chase Investment Services.
Crockett is no longer registered with a FINRA member brokerage firm.
His current FINRA BrokerCheck report reflects one final regulatory action and one pending customer dispute.
The regulatory action, FINRA Case No. 2026900000201, resulted in a two-month suspension and $5,000 fine for undisclosed outside business activities and inaccurate compliance disclosures.
The pending customer complaint, received September 21, 2026, alleges $132,000 in payments involving nine checks issued between October 2024 and September 2025 for transactions unrelated to any identifiable product or service.
This information is reported as of November 3, 2026.
Signs Investors Should Look Out For About Their Brokerage Accounts
As an investor, there are a few signs that you should look out for if you believe you may have a claim against your broker. These signs could potentially indicate misconduct, negligence, or investment fraud.
Investors are encouraged to contact our firm immediately if you have experienced any of the following:
- You have substantial losses in your investment accounts
- You received a call, email, or other communication from your broker’s supervisor or manager regarding your portfolio
- Your broker misrepresented investment opportunities or failed to disclose material details about investments
- You notice unauthorized transactions in your investment accounts
- Your broker is not returning your calls or emails
- You filed a complaint with your brokerage firm that has not been resolved
Investors should also be alert when financial professionals request payments outside established brokerage accounts, recommend financial arrangements involving outside companies, or fail to provide clear documentation explaining the purpose of a transaction.
Some investors have close relationships with their brokers due to the time and trust built over the course of their investment relationship. However, financial decisions should be based on careful analysis and due diligence rather than solely relying on personal relationships.
Can I Recover My Investment Losses with Howard Crockett?
Investors who suffered financial losses involving outside business activities, questionable financial transactions, or other arrangements involving Howard Crockett may have potential claims against responsible financial professionals or brokerage firms, depending upon the circumstances surrounding the transactions and the resulting financial harm.
FINRA suspended Crockett for two months and fined him $5,000 following findings that he engaged in undisclosed outside business activities involving a company owned by a NYLife Securities customer and received approximately $200,000 in compensation. His disclosure history also includes a pending customer complaint alleging $132,000 in payments unrelated to any identifiable product or service.
KlaymanToskes represents investors nationwide in claims involving financial advisor misconduct, undisclosed outside business activities, negligence, misrepresentations and omissions, and brokerage firm supervisory failures.
Our experienced securities attorneys can review financial records, payment documentation, account statements, and communications with financial professionals to determine whether potential securities violations or other actionable conduct contributed to an investor’s losses.
Investors do not need to determine on their own whether a securities violation occurred. KlaymanToskes offers free and confidential case evaluations to help investors understand their legal rights and potential recovery options.
If you suffered financial losses involving outside business activities, payments, or other financial transactions involving Howard Crockett through NYLife Securities or another financial firm, contact KlaymanToskes at 888-997-9956 or fill out a short contact form to discuss your potential recovery options.
