Jonathan Greer (CRD#: 2515200), a former registered representative with Arete Wealth Management LLC (CRD#: 44856) in Baton Rouge, Louisiana, has been terminated from his role as a broker at that firm, according to his BrokerCheck record accessed on March 16, 2020.
What happened to lead to Jonathan Greer’s departure from Arete Wealth Management? While Jonathan Greer’s BrokerCheck record lists his Termination Type as “Voluntary Resignation,” the listed allegations state that Jonathan Greer was terminated from the firm while under investigation for engaging in private securities transactions (commonly known as “selling away”). The firm alleged that Jonathan Greer engaged in $2.5 million worth of private securities transactions from 2016 to 2018. However, Jonathan Greer certified on his firm’s annual compliance forms that he was not engaged in any securities violations.
Arete Wealth Management was also investigating Jonathan Greer for failing to disclose a tax lien. Jonathan Greer’s BrokerCheck record lists a tax lien of $509,384.69, reported on September 9, 2016. Why is it problematic that Jonathan Greer allegedly failed to disclose this lien to his firm? FINRA, the Financial Industry Regulatory Authority, has specific rules governing what information brokers must disclose to their firms. The main rule is FINRA Rule 4530, which outlines the reporting requirements that brokers must follow.
By not telling his firm about this lien, Jonathan Greer not only violated his firm’s policy, but he also violated FINRA Rule 4530, which mandates that FINRA members report violations within 30 days of learning of a violation. These disclosures could include:
- Violations of FINRA rules
- Violations of federal securities laws
- Violations of state securities laws
- Being denied registration from a state securities regulator
- Being convicted of, or pleading guilty to, a felony (or a misdemeanor that involves securities)
These disclosures must be reported on the Form U4, the Uniform Application for Securities Industry Registration or Transfer (which must be filed when a broker enters the securities industry for the first time or moves between firms throughout their careers).
“The goal of FINRA 4530, robust disclosure, is no different than the broad public policy goals of our securities laws. Member firms should provide as much information as possible to investors to enable them to make well informed decisions regarding who they trust with their investments,” says attorney Marc Fitapelli, investor advocate and partner at Fitapelli Kurta LLC. If a broker has any unsatisfied tax liens, these must be reported—but, in the case of Jonathan Greer and his large unsatisfied tax lien, this was not done.
Jonathan Greer is not currently registered as a broker. Over his 24 years of experience, he has worked for four brokerage firms. In addition to his most recent role at Arete Wealth Management LLC (CRD#: 44856) in Baton Rouge, Louisiana, he has also worked for the following firms:
- Private Consulting Group, Inc. (CRD#: 45053)
- NFP Securities, Inc. (CRD#: 42046)
- NYLife Securities, Inc. (CRD#: 5167)
If Jonathan Greer was your broker and you have questions about your investments, don’t hesitate to contact the securities attorneys of Fitapelli Kurta to learn about your options for recovery. Call (877) 238-4175 or email email@example.com for your free case consultation.