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Keith Rich: Ex-JP Morgan, PFS Broker Suspended Over Outside Business
Former Marietta, Georgia broker Keith Rich (CRD# 6272427) has been sanctioned by the Financial Industry Regulatory Authority (FINRA) over allegations he improperly participated in an outside business activity. Formerly a representative of JP Morgan Securities in Marietta and PFS Investments in Snellville, Georgia, Rich was issued a 45-day suspension and a fine of $5,000.
According to a Letter of Acceptance, Waiver and Consent (No. 2019063012001) dated January 2020, Keith Rich was associated with PFS Investments and JP Morgan Securities when, between February 2019 and June 2019, he participated in an outside business activity without giving either firm prior written notice. On February 21, 2019, according to FINRA, he entered an agreement with a company to become a loan referral agent; at the time, he was registered with PFS Investments. The company “provided alternative business loans to borrowers that could not obtain traditional bank loans,” the findings state, and his agreement stipulated that he would be paid four to six percent of the amount of any closed loan he referred. FINRA notes that both PFS and JP Morgan had written supervisory procedures requiring representatives to provide prior written notice to their firms, and to receive approval from their firms, before participating in outside business activities. However, FINRA states, he did not notify PFS in writing or receive its approval to become the company’s loan referral agent; he also did not notify JP Morgan Securities or receive its approval, the findings state. The findings finally note that while he did not receive pay from the company during the period in question, he “actively solicited loan referrals during that time.” As a result of the foregoing alleged conduct, which FINRA found to be in violation of FINRA Rules 3270 and 2010, he was issued a 45-day suspension from associating with any FINRA member firm in any capacity. He was also ordered to pay a fine of $5,000.
Keith Rich is currently not registered as a broker. His previous registrations include JP Morgan Securities, PFS Investments, Edward Jones, Cambridge Investment Research, E-Trade Securities, and Signator Investors. He has passed eight securities industry qualifying examinations and his BrokerCheck report lists zero state securities licenses. (Information current as of May 21, 2020.)