National investment loss lawyers KlaymanToskes reports broker/investment advisor Greg Collins (CRD# 4224616) has been suspended from acting as a broker or associating with a broker-dealer firm by the Financial Industry Regulatory Authority (“FINRA”). FINRA’s decision comes after Collins allegedly engaged in several outside business activities without providing prior written notice to his firm, LPL Financial.
According to FINRA BrokerCheck, Gregory Edward Collins was previously registered as a broker with LPL Financial from 2018 to 2021 in East Greenbush, NY. Collins was also previously registered with Invest Financial Corporation from 2014 to 2018 in Latham, NY.
Investors that suffered losses with Greg Collins may be entitled to a financial recovery. Contact Lawrence L. Klayman, Esq. at (888) 997-9956 or lklayman@klaymantoskes.com to discuss your recovery options. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you.
On July 24th, 2023, FINRA’s Department of Enforcement entered into a Letter of Acceptance, Waiver, and Consent (“AWC”) with Gregory E. Collins, disclosing that Collins consented to sanctions of a six-month suspension from associating with any FINRA member in all capacities and a $12,500 fine.
According to the AWC, the matter originated from FINRA’s review of an amended Form U5 filed by LPL Financial on January 4, 2022. FINRA’s Form U5 is the “uniform termination notice for securities industry registration,” used by brokerage firms each time one of their registered employees leaves the firm, for any reason.
FINRA found that LPL filed a Form U5 on August 4, 2021 upon Collins’ voluntary resignation from the firm. On January 4, 2022, LPL filed an Amended Form U5 on behalf of Collins, stating that an internal review found that Collins had “offered paid online financial education courses after Firm disapproval of activity, and that former representative did not receive Firm approval prior to consulting for a hedge fund, an activity that was ultimately disapproved.”
According to the AWC, from 2019 to 2021, Collins allegedly earned over $150,000 from five outside business activities, one of which involved serving as a strategic advisor for a hedge fund. Colins reportedly failed to provide LPL Financial with prior notice of three of his outside business activities and continued engaging in the other two activities after his firm explicitly denied his requests to participate in them.
From 2019 to July 2021, Collins allegedly worked as a lecturer in finance at two universities and at a retail distributor, receiving compensation from all three positions. From July 2019 through July 2021, Collins also reportedly served as the “strategic advisor” to a hedge fund, where he provided investment advice and other services to the hedge fund.
LPL’s written supervisory procedures required registered representatives to disclose to the firm, in writing, “any outside business activities prior to engaging in such activity,” according to FINRA. The firm prohibited representatives from engaging in any outside business activity before receiving approval from the firm.
In January 2020, Collins allegedly first disclosed his hedge fund activity to his firm and inaccurately and incompletely described his role as a “consultant.” LPL’s policies explicitly prohibited registered representatives from engaging in such an activity, and the firm denied Collins’ request.
Despite LPL’s denial of his request, Collins continued acting as a strategic advisor to the hedge fund until June 8, 2021, when LPL initiated an internal investigation into his continued participation in unapproved business activities. FINRA also found that Collins created a website in 2017 with the purpose of selling online financial education courses, which LPL denied approval for. Collins allegedly maintained the website until July 2021.
According to the AWC, from 2019 to July 2021, Collins submitted two false compliance attestations to LPL Financial representing that he had disclosed all outside business activities to the firm.
Greg Collins violated FINRA Rule 3270 (Outside Business Activities of Registered Persons), and Rule 2010 (Standards of Commercial Honor and Principles of Trade), by engaging in outside business activities without providing his firm, LPL Financial, with prior written notice.
Further, Collins traded securities on behalf of a hedge fund he was involved in without providing prior written notice to LPL, in violation of FINRA Rule 3280 (Private Securities Transactions) and Rule 2010.
Investors that suffered losses with Greg Collins and/or any other broker at LPL Financial or Invest Financial Corporation may have recovery options. Contact attorney Lawrence L. Klayman, Esq., to discuss your legal options at 888-997-9956 or by email at lawrence@klaymantoskes.com. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you.
KlaymanToskes is a leading national securities law firm which practices exclusively in the field of securities arbitration on behalf of retail and institutional investors throughout the world in large and complex securities matters. The firm has recovered over $250 million in FINRA arbitrations and over $350 million in other securities litigation matters. KlaymanToskes has office locations in California, Florida, New York, and Puerto Rico.
KlaymanToskes, P.A.
Lawrence L. Klayman, Esq.
888-997-9956
lawrence@klaymantoskes.com
www.klaymantoskes.com