Ryan Bennet Suspended by FINRA for Alleged Unapproved OBA

Ryan Bennet (CRD #: 6274472), a broker formerly registered with First Heartland Capital, allegedly engaged in an outside business activity without approval, according to his BrokerCheck record, accessed on December 6, 2024. If you want to know more about his alleged conduct as a broker, keep reading.

FINRA Suspension

On November 13, 2024, Ryan Bennett consented to the entry of findings that he allegedly engaged in an outside business activity (OBA) between March 2020 and November 2022 without providing prior written notice to First Heartland Capital.

According to a letter of Acceptance, Waiver & Consent (AWC), Ryan Bennett allegedly disclosed upon employment with First Heartland Capital that he worked with a company providing online estate planning services and referred individuals to the company in exchange for commissions. First Heartland Capital allegedly provided approval for his participation in this OBA but not for the acceptance of referral commissions.

Ryan Bennett allegedly stated that he would cease participation in the OBA completely. Instead, the AWC alleged that he executed a partnership agreement with the company in March 2020 on behalf of a marketing entity he had co-founded. He allegedly referred 11 individuals, including nine First Heartland Capital clients, to the company for estate planning services and received $2,750 in commissions associated with these referrals.

Additionally, the AWC alleged that Ryan Bennett was aware that his spouse had opened four brokerage accounts with other firms before he joined First Heartland Capital, and two additional accounts afterwards, but failed to disclose these accounts to his firm. He allegedly also failed to provide the firm with account statements and transaction confirmations as required by firm policies.

The AWC concluded that these allegations constituted violations of FINRA Rules 3270, 3210, and 2010.

FINRA Rule 3270

FINRA Rule 3270 requires brokers to disclose to their firm any business activities they engage in outside it, including any compensation they expect to receive.

FINRA Rule 3210

FINRA Rule 3210 prohibits brokers from opening an investment account at any other brokerage firm besides the firm where they are registered representatives, unless they have the prior written consent of their firm. 

FINRA Rule 2010

FINRA Rule 2010 holds brokers to high standards of commercial honor and just and equitable principles of trade.

Sanctions

Ryan Bennett consented to the following sanctions:

• 3-month suspension from associating with FINRA members
• $10,000 fine

His suspension began on November 18, 2024, and will end on February 17, 2025.

You can read the full AWC here.

Outside Business Activities

Ryan Bennett’s detailed BrokerCheck report discloses the following outside business activities:

• Registered Investment Advisor with Freedom Financial, selling life insurance
• Sole proprietor of Camarillo Cards, selling trading cards online
• Partner in unspecified real estate partnership agreements
• Provider of client referrals for NetLaw Affiliations, wherein he receives compensation for referring clients to their online estate planning legal services

Termination from First Heartland Capital

On January 13, 2023, Ryan Bennett was fired from First Heartland Capital following allegations of misconduct:

• Failing to follow firm policy concerning the use of a firm email address for securities-related communications
• Engaging in an OBA without approval
• Violating firm privacy policy by sharing client information with an unaffiliated Registered Investment Advisor (RIA) who had no business relationship with the client or First Heartland Capital
• Violating firm policy by arranging the extension of credit from a client to a business owned by one of his friends

Background Information

Ryan Bennet has passed the following exams:

• Securities Industry Essentials Examination – SIE
• Investment Company Products/Variable Contracts Representative Examination – Series 6
• Uniform Investment Adviser Law Examination – Series 65
• Uniform Securities Agent State Law Examination – Series 63

He previously worked for First Heartland Capital (CRD#:32460) and Transamerica Financial Advisors (CRD#:16164).

Kurta Law Can Help

If you worked with Ryan Bennet 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 that 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.