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Jon Sugick: Detroit Financial Advisor Suspended by FINRA
A disciplinary action taken by the Financial Industry Regulatory Authority against former Detroit, Michigan financial advisor Jon Sugick (CRD# 4985852) suspended him over allegations he participated in an outside business activities involving the sales of unapproved commodity products. A representative of NYLife Securities, Sugick was suspended for two months and ordered to pay a fine of $5,000.
According to a Letter of Acceptance, Waiver and Consent (No. 2016051184601) dated July 2018, Jon Sugick was registered with NYLife Securities from January 2009 until August 2016, when he resigned, according to a firm disclosure, while under internal investigation concerning his possible involvement in an unapproved outside business activity that involved selling unapproved products. FINRA’s findings state specifically that he participated in two outside business activities without properly giving his firm written notice. The first, according to FINRA, involved his incorporation of a limited liability company, for which he was chief executive officer, which he “intended to use to conduct commodities trading.” FINRA states that he incorporated the company in April 2015 but did not notify the firm about it until October 2015, when the firm denied his request to engage in the activity and “instructed him to dissolve or transfer his ownership” of the LLC. FINRA states that he ignored this direction and instead remained the company’s CEO.
His second activity, according to FINRA, involved the referral of eleven individuals, including nine customers of his firm, to a commodities trading advisor between June and September 2015. FINRA’s findings go on to state that he received referral fees totaling about $11,000 from the advisor, while the persons who invested with that advisor “ultimately incurred significant losses.” Sugick did not, FINRA notes, provide his firm with written notice of the activity, and also erroneously attested on a firm compliance questionnaire “that he had disclosed all outside business activities to the Firm in writing.” FINRA found these activities to constitute violations of FINRA Rules 3270 and 2010. As a result of the alleged foregoing conduct, Sugick was suspended from associating with any FINRA member in any capacity for two months. He was also ordered to pay a fine of $5,000.
Jon Sugick is currently not registered as a broker or investment advisor. His employment history includes NYLife Securities in Detroit, Michigan, and Edward Jones in St. Louis, Missouri. He currently holds zero state licenses and has passed three securities industry qualification examinations.