John Quinn Suspended by FINRA After Alleged Undisclosed Transactions
John Quinn (CRD #: 2576416), a broker formerly registered with VALIC Financial Advisors, is the subject of a FINRA suspension, according to his BrokerCheck record, accessed on February 10, 2022.
According to FINRA's allegations, while associated with LPL Financial, John Quinn participated in six private securities transactions involving approximately $1.2 million in total sales without LPL Financial's knowledge or approval.
The allegations further state that while associated with LPL Financial and VALIC Financial Advisors, John Quinn engaged in an outside business activity without approval from his member firms.
Alleged Undisclosed Private Securities Transactions
According to FINRA’s findings, John Quinn solicited six investors to purchase restricted shares of common stock in an industrial hemp company, allegedly without disclosing these transactions to his employer. The six investors, three of whom were LPL customers, allegedly purchased a total of $1,247,500 of the company's restricted shares of common stock. John Quinn allegedly received 2,540,000 restricted shares of common stock in exchange for referring the investors to the company.
In addition, John Quinn allegedly falsely certified on LPL's Financials annual compliance questionnaire that he had not participated in any private securities transactions.
FINRA Rule 3280 states that prior to participating in any private securities transaction, an associated person shall provide written notice to the member with which he is associated describing in detail the proposed transaction and the person's proposed role therein and stating whether he has received or may receive selling compensation in connection with the transaction.
A violation of FINRA Rule 3280 is also a violation of FINRA Rule 2010, which requires associated persons, in the conduct of their business, to observe high standards of commercial honor and just and equitable principles of trade.
Alleged Undisclosed Business Activities
John Quinn disclosed that he owned Quinn Wealth Management. He allegedly represented to LPL that the purpose of this business was to hold real estate and that it was not held out to the public or marketed. LPL Financial approved the entity as an outside business.
Later, John Quinn allegedly requested approval to provide consulting services to the hemp company. LPL Financial denied the request because the hemp company was in the cannabis business. Nevertheless, John Quinn allegedly provided consulting services to the hemp company through Quinn Wealth Management.
In total, John Quinn allegedly received $105,000 in fees from the hemp company for his undisclosed and unapproved consulting activities.
FINRA Rule 3270 requires that brokers provide written notice to their firms regarding their outside business activities. A violation of FINRA Rule 3270 also constitutes a violation of FINRA Rule 2010, which requires registered representatives to observe high standards of commercial honor and just and equitable principles of trade.
John Quinn has no business listed in the Outside Business Activity section of his detailed BrokerCheck report (This is where outside businesses that a broker discloses to their firm should appear.)
FINRA Suspension and Fine
As part of the terms of the AWC, John Quinn consented to a:
- An 18-month suspension from associating with any FINRA member in all capacities
- A $10,000 fine
You can read a copy of the AWC here.
On April 21, 2021, John Quinn was named in a customer dispute alleging he recommended a variable annuity with an income rider which was not a suitable investment for the Trust given the beneficiary income requirements. The Trustee requested a return of the annuity principal without surrender charges amounting to $232,400. Variable annuities come with different fees, and the contracts are often too complex for investors (and brokers) to understand. The fees can negate any benefit that the variable annuity supposedly offers. This makes most variable annuities unsuitable for most investors.
The firm denied the case; however, investors should know that they can still recover their losses following a denial.
Employment Termination Details
On January 26, 2021, VALIC Financial Advisors fired John Quinn after allegedly failing to respond to a FINRA 8210 request.
FINRA Rule 8210 requires that registered brokers supply FINRA staff with all information and documents requested in the course of an investigation.
John Quinn has passed the following exams:
- Series 63 - Uniform Securities Agent State Law Examination
- SIE - Securities Industry Essentials Examination
- Series 7 - General Securities Representative Examination
- Series 24 - General Securities Principal Examination
Besides VALIC Financial Advisors and LPL Financial, he has also worked with the following firms:
- Ameriprise Financial Services (CRD#:6363)
- Chase Investment Services Corp. (CRD#:25574)
- WAMU Investments (CRD#:599)
- US Euro Securities (CRD#:38839)
- Great Eastern Securities (CRD#:2061)
- Investscape (CRD#:39992)
- Investprivate (CRD#:103737)
- First Liberty Investment Group
- The Boston Group (CRD#:37652)
Kurta Law Can Help
If you have been victimized after working with John Quinn, don't hesitate to contact us today at 877-600-0098 or firstname.lastname@example.org for a free consultation.
For nearly 20 years, Kurta Law has advocated for investors 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.