FINRA Suspends Bruce Amman After Alleged Undisclosed Private Securities Transaction

Bruce Amman (CRD #: 2130243), a broker formerly registered with LPL Financial, has been suspended by FINRA, according to his BrokerCheck record, accessed on June 20, 2022. If you want to learn more about Bruce Amman’s conduct as a broker, read on.

Suspension by FINRA

A letter of Acceptance, Waiver & Consent (AWC) filed on April 20, 2022, alleges that Bruce Amman participated in a private securities transaction without properly notifying his firm, LPL Financial.

The AWC alleges that a client of Bruce Amman was selling partnership interests in a limited partnership that would generate large capital gains and seeking a specialized tax-advantaged investment to offset these gains.

In April 2018, Bruce Amman allegedly introduced the client to a third party experienced in that type of investment, as well as providing the third party with information about the client, participating in two phone calls with both parties, and facilitating the wire transfer out of the client’s LPL account to fund the investment.

In May 2019, the client allegedly invested approximately $3.5 million in the investment, a security structured as a private placement.

The AWC notes that the client did not file a complaint, but that the FINRA investigation was spurred by the Uniform Termination Notice for Securities Industry Registration (Form U5) filed by LPL Financial following Bruce Amman’s firing.

In August 2019, according to the AWC, Bruce Amman incorrectly answered “no” to a question on an annual firm questionnaire asking whether he had participated in a private securities transaction. He also allegedly failed to provide LPL Financial with any disclosure prior to the transaction.

The AWC concludes that these allegations violate FINRA Rules 3280 and 2010.

FINRA Rules 3280 and 2010

FINRA Rule 3280 requires brokers to disclose to their firm any private securities transactions they participate in before the transaction takes place. This written disclosure must explain their role in the transaction and any compensation they will receive.

Violations of many FINRA Rules also automatically violate FINRA Rule 2010, which holds brokers to high standards of commercial honor.

Sanctions

Bruce Amman consented to the following sanctions:

• $5,000 fine
• 12-month suspension from associating with FINRA members in all capacities

His suspension began on May 2, 2022, and will end on May 1, 2022.

You can read the AWC here.

Discharge from LPL Financial

On June 19, 2020, Bruce Amman was fired from LPL Financial for allegedly switching short-term mutual fund products in clients’ accounts.

Tax Liens

From 2016-2019, Bruce Amman faced a total of $152,053.78 in tax liens.

Background Information

Bruce Amman 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 31 – Futures Managed Funds Examination
• Series 7 – General Securities Representative Examination

He previously worked for the following firms:

• LPL Financial (CRD#:6413)
• Citigroup Global Markets (CRD#:7059)
• Citicorp Investment Services (CRD#:23988)
• Morgan Stanley DW (CRD#:7556)
• Piper Jaffray (CRD#:665)
• Everen Securities (CRD#:19616)

Kurta Law Can Help

If you worked with Bruce Amman and you have concerns about your investments, please contact us today at 877-600-0098 or info@kurtalawfirm.com 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.