Tyrone Smiles Barred by FINRA Following Allegations of Undisclosed Outside Business Activities
Tyrone Smiles (CRD #: 4370937), a broker formerly registered with Prudential Investment Management Services, is the subject of a FINRA bar, according to his BrokerCheck record, accessed on December 9, 2021.
This bar stems from allegations that he engaged in outside business activities without prior written disclosure to and approval from his employer member firm, violating FINRA Rules 3270 and 2010. Additionally, Tyrone Smiles allegedly provided false information to FINRA during testimony in violation of FINRA Rules 8210 and 2010.
Outside Business Allegations
According to the allegations, Tyrone Smiles was involved in two outside business activities:
- Tyrone Smiles ran an overseas vacation property rental business, “Smiles B&B Management.” He owned two properties, one in the Dominican Republic and one in Brazil, that he rented out for short-term stays. He did not provide written notice to his firm disclosing the vacation property rental business or obtain approval from his firm before engaging in the outside business activity.
- During his stint at Prudential Investment Management Services, Tyrone Smiles worked as a Dedicated Retirement Counselor. He was not supposed to recommend or sell securities. His role involved meeting with retirement plan participants and educating customers about their corporate retirement plans. FINRA alleges that from 2014 to 2019, Tyrone Smiles referred 39 customers to a representative registered with a firm affiliated with Prudential Investment Management. These customers purchased 45 variable annuity contracts through the representative, who then sent Tyrone Smiles 41 checks totaling $118,007.95 for referring customers. He did not disclose to or receive approval from his firm for this activity.
FINRA Rule 3270 requires that brokers provide written notice to their firms regarding their outside business activities. By engaging in outside business activities without providing prior written notice to his firm Prudential Investment Management Services, Tyrone Smiles violated FINRA Rules 3270 and 2010.
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.
Tyrone Smiles Allegedly Provided False and Misleading Information
Tyrone Smiles allegedly falsely maintained that each of the 41 checks he received from the registered representative of an affiliated firm was related to a vacation property timeshare and not customer referrals. By providing false and misleading testimony for FINRA, he violated FINRA Rules 8210 and 2010.
FINRA Rule 8210 states that for purposes of an investigation, FINRA has the right to require a person subject to FINRA’s jurisdiction to provide information orally [or] in writing with respect to any matter involved in the investigation.
A violation of FINRA Rule 8210 is also a violation of FINRA Rule 2010, which requires member firms and their associated persons to “observe high standards of commercial honor and just and equitable principles of trade.”
You can read the full copy of the AWC here.
Outside Business Activities
Tyrone Smiles 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.)
Employment Termination Details
On November 11, 2019, Prudential Investment Management Services fired Tyrone Smiles for allegedly participating in an unapproved customer referral arrangement with a registered representative of another affiliated firm. According to an internal investigation, he accepted compensation from the representative.
Tyrone Smiles 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
He has also worked with the following firms:
- GWFS Equities (CRD#:13109)
Kurta Law Can Help
If you have suffered losses after working with Tyrone Smiles, don’t hesitate to get in touch with 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.