Brent Lott Fired from MHL Investments Following Alleged Violations
Brent Lott (CRD #: 1559744) has been fired from MHL Investments, according to his BrokerCheck record, accessed on June 29, 2022. Read on to learn more about Brent Lott’s conduct as a broker.
Termination from MHL Investments
On February 9, 2022, Brent Lott was fired from MHL Investments after allegedly violating firm supervisory controls and acting in a capacity which neither he nor the firm was licensed for, including providing investment advisory services.
Brent Lott allegedly used at least one client’s personal account login to access their investment advisory and/or qualified accounts and executed transactions within these accounts. Some of these accounts were allegedly managed by Everspire, a registered investment advisor and affiliate of MHL Investments.
Brent Lott allegedly failed to disclose to clients that he was not licensed as an investment advisor and allegedly circumvented firm supervision by using his personal email address to conduct business with clients.
What’s the difference between brokers and investment advisors?
Regulation Best Interest (Reg BI) specifies that brokers cannot refer to themselves as “investment advisors” without being registered with the SEC.
Suspension by FINRA
On January 25, 2018, Brent Lott consented to an Order Accepting Offer of Settlement following a FINRA complaint alleging he “knowingly and substantially aided and abetted” an unregistered individual in the recommendation and sale of securities while employed by LPL Financial.
Brent Lott allegedly agreed to serve as the broker of record for these annuity exchanges and split commissions with another broker, while knowing that the individual was not registered with FINRA.
The Offer of Settlement alleges that, from March 2013 to October 2013, the unregistered individual recommended 26 exchanges of variable annuities and seven sales of mutual funds to 13 customers for the purpose of funding purchases of 33 fixed index annuities issued by the unnamed insurance companies.
Further, Brent Lott allegedly falsely certified to LPL Financial on ten suitability forms that he had discussed the costs of benefits of transactions with nine different clients. He also allegedly falsely certified to the insurance company that he met certain clients in person, discussed the appropriateness of their annuity replacement, and misrepresented that he had known certain clients for at least 1-2 months.
The Offer of Settlement concludes that these allegations violated the following regulations:
- Section 15(a)(1) of the Securities Exchange Act of 1934
- Section 17(a) of the Securities Exchange Act of 1934
- FINRA Rules 4511 and 2010
Sections 15(a)(1) and 17(a) of the Securities Exchange Act of 1934
Section 15(a)(1) of the Securities Exchange Act of 1934 prohibits unregistered brokers and dealers from purchasing or selling securities across state lines.
Section 17(a) prohibits the use of fraudulent schemes and devices, including the misrepresentation or omission of material facts, in the purchase or sale of securities.
FINRA Rules 4511 and 2010
FINRA Rule 4511 requires firms to keep accurate books and records.
Violations of Rule 4511 qualify as automatic violations of FINRA Rule 2010, which requires brokers to uphold high standards of commercial honor and just and equitable principles of trade.
Brent Lott consented to the following sanctions:
- $20,000 fine
- Four-month suspension from associating with FINRA members in all capacities
His suspension began on April 16, 2018, and ended on August 15, 2018.
You can read the full Offer of Settlement here.
Alleged Unauthorized Trading
On January 26, 2016, multiple investors alleged that Brent Lott, as the broker of record for accounts previously managed Ogilvie Securities and an unnamed third party, initiated trades without clients’ consent in 2013. Clients sought $2,015,000 in damages and received a settlement of $50,000.
FINRA Rule 3260
Unauthorized trading violates FINRA Rule 3260, which restricts brokers from exercising their trading discretion outside of discretionary accounts. These accounts must be approved for discretionary trading by the client and firm.
Brent Lott has passed the following exams:
- Series 65 – Uniform Investment Adviser Law Examination
- Series 63 – Uniform Securities Agent State Law Examination
- SIE – Securities Industry Essentials Examination
- Series 7 – General Securities Representative Examination
- Series 6 – Investment Company Products/Variable Contracts Representative Examination
- Series 24 – General Securities Principal Examination
He previously worked for the following firms:
- MHL Investments (CRD#:2535)
- Cetera Advisor Networks (CRD#:13572)
- Girard Securities (CRD#:18697)
- LPL Financial (CRD#:6413)
- AIG Financial Advisors (CRD#:133763)
- SunAmerica Securities (CRD#:20068)
- Copeland Equities (CRD#:7447)
Kurta Law Can Help
If you worked with Brent Lott and you have concerns about your investments, please contact us today at 877-600-0098 or firstname.lastname@example.org for a free consultation.
For over 20 years, Kurta Law has advocated on behalf of investors who want to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm and exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf.