Brian Pearce (#1334784) was suspended from acting as a FINRA broker and fined $5,000 after thirty-six years of experience. Pearce signed a letter of Acceptance, Waiver, and Consent in November 2021 stating he participated in private securities transactions without disclosure to or approval from his member firm.

Brian Pearce Background

Pearce was employed by FSC Securities Corporation (FSC) from 2012 to 2018. During his employment, Pearce allegedly solicited two investors to purchase securities of Future Income Payments LLC (FIP), totaling $607,730. FIP promised investors a seven to eight percent rate of return on their investment. FIP purchased pensions at a discount and then sold a portion of them to investors.

FINRA Findings and Sanction

According to the FINRA report, Pearce received $24,309 in commission from the securities transactions. Pearce’s member firm, FSC, prohibited its representatives from participating in private securities transactions without prior approval from the firm. Pearce allegedly did not notify FSC or receive approval for the transactions.

Furthermore, FINRA Rule 3280(b) 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 standing whether he has received or may receive selling compensation in connection with the transaction.”

According to FINRA, Pearce’s actions were a violation of rules 3280 and 2010. As a result, Pearce was suspended for seven months, fined $5,000, and ordered to pay disgorgement of $9,723 plus interest.