FINRA Suspends Former LPL Advisor for Unreported Moonlighting as College Professor and Hedge Fund Advisor
From the Desk of Jim Eccleston at Eccleston Law.
The Financial Industry Regulatory Authority (FINRA) finalized a letter of settlement, formally known as an Acceptance, Waiver and Consent (“AWC”), suspending a former LPL Financial advisor, Gregory E. Collins, for six months and imposing a $12,500 fine. The suspension and fine resulted from Collins’ allegedly earning $150,000 from unreported or unauthorized outside activities.
According to FINRA, Collins improperly engaged in five outside business activities between 2019 and mid-2021 while based in East Greenbush, New York. Those activities included teaching at two universities and a "retail distributor", serving as a strategic advisor to a hedge fund, and creating a website to sell online financial education courses.
The letter stated that Collins failed to disclose his teaching roles and reported only the other two activities after a delay. Furthermore, despite LPL’s explicitly denying his approval request, he continued pursuing those activities. Collins accepted the fine and suspension without admitting or denying FINRA's findings, according to AdvisorHub.
According to the AWC, Collins's actions violated FINRA's Rule 3270, requiring advisors to notify their firms prior to engaging in outside business activities. Additionally, Collins violated FINRA's catch-all Rule 2010, which required advisors to observe high standards of commercial honor. Through his hedge fund responsibilities, Collins also violated Rule 3280, requiring advisors to provide written notice to their firms before participating in private securities transactions.
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Related Attorneys: James J. Eccleston
Tags: Eccleston, Eccleston Law, FINRA, Moonlighting
