A disciplinary action taken by the Financial Industry Regulatory Authority against former Pasadena, California broker and investment advisor Dennis Mehringer...Read More
Financial Advisor Adam Vernon Barred By FINRA After Termination From Quester Capital
Financial Advisor Adam Vernon Barred has been barred from the financial industry by the Financial Industry Regulatory Authority (FINRA) following his termination from Quester Capital in February 2017. According to regulatory reports, Vernon was fired from Questar for “fail[ing] to report an outside business activity on a timely basis in violation of firm policies and procedures.”
According to FINRA, from July 2015 to December 2016, Vernon participated in private securities transactions without first providing notice to his employer, Questar Capital. FINRA claims this violated Questar’s written supervisory procedures, NASD Rule 3040 and FINRA Rules 3280 and 2010.
In July 2015, Vernon created a company, Contract Funding and Corporate Management. Vernon was the president of the company. Contract Funding and Corporate Management provided a line of credit to another company which used the funds to fulfill government contracts. Some of the profits from the government contracts were then shared with Contract Funding and Corporate Management.
According to FINRA, Vernon raised $1.74 million for Contract Funding and Corporate Management from clients of Questar Capital and $50,000 from one person who was not a client. Under Questar’s firm rules, employees are not allowed to raise capital for companies that they own. Therefore, FINRA alleges that Vernon violated Questar’s rules, NASD Rule 3040 and FINRA Rules 3280 and 2010.
Vernon agreed to a bar from association with any FINRA member firm. Vernon appears to have no customer complaints on his record. Prior to being employed by Questar, Vernon was licensed with LPL Financial, Mutual Service Corporation, American General Securities Incorporated, and Franklin Financial Services Corporation.