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FINRA Suspends Nick Ash for Alleged Undisclosed Outside Business Activities

Aug 15, 2022 Outside Business Activities

Nick Ash (CRD #: 6244799), a broker registered with OFG Financial Services, has been suspended by FINRA, according to his BrokerCheck record, accessed on July 24, 2022. Read on if you have questions about Nick Ash’s conduct as a broker.

Suspension by FINRA

On June 8, 2022, Nick Ash consented to the entry of findings that he allegedly engaged in outside business activities without providing written notice in advance to his firm, OFG Financial Services.

According to a Letter of Acceptance, Waiver, and Consent (AWC), in November 2017, Nick Ash allegedly became a 12.5% owner of a limited liability company, identified as Company A, that he co-owned with three family members. Company A allegedly bought and operated rental properties, and Nick Ash allegedly performed repair and maintenance work on these properties.

Two of his co-owners, who owned 75% of the company in total, were allegedly also brokers at OFG Financial Services. These co-owners allegedly led Company A to buy properties from and lease properties to firm clients.

The AWC alleges that Nick Ash failed to disclose his relationship with Company A until August 2018, and, prior to this disclosure, received approximately $1,500 in profit and compensation related to Company A.

Other Undisclosed Outside Business

Between October 2019 and July 2021, Nick Ash allegedly participated in another undisclosed business activity. Another real estate company owned by one of Company A’s owners, Company B allegedly owned and leased a rental property to a firm client.

Nick Ash allegedly worked as an independent contractor for Company B, providing repair and maintenance services, and received compensation of approximately $500. He allegedly failed to disclose this activity to the firm at any point, and his alleged relationship to Company B was discovered by a FINRA investigation in April 2021.

The AWC concludes that Nick Ash’s alleged failure to disclose outside business activities violates FINRA Rules 3270 and 2010.

FINRA Rules 3270 and 2010

FINRA Rule 3270 requires brokers to provide a disclosure to their firm before engaging in any outside business activities. Brokers must disclose their role in the business if they expect to receive compensation. 

Violations of this and other FINRA Rules frequently 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.

Sanctions

Nick Ash consented to the following sanctions:

  • $5,000 fine
  • Two-month suspension 

His suspension began on July 5, 2022, and will end on September 4, 2022.

You can read a copy of the AWC here.

Other Business Activities

Nick Ash’s detailed BrokerCheck report currently lists two outside business activities:

  • Ash Capital LLC, an investment advisor and insurance sales company, where he receives commissions.
  • Football and track and field coach at Olathe East High School, where he receives a flat fee.

Background Information

Nick Ash has passed the following exams:

  • Series 63 – Uniform Securities Agent State Law Examination
  • SIE – Securities Industry Essentials Examination
  • Series 6 – Investment Company Products/Variable Contracts Representative Examination

Nick Ash is a registered broker in Kansas, Missouri, and Texas.

Kurta Law Can Help

If you worked with Nick Ash 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. 

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