The law firm of Oakes & Fosher is presently investigating the alleged misconduct of former securities broker Jon Sugick. According to his publicly available FINRA BrokerCheck report, Jon Sugick has been the subject of a customer dispute and FINRA sanction.

Jon Sugick was a Michigan based securities broker. He worked in the securities industry for seven years. During his career, he was registered with two different securities firms. He is no longer working as a registered securities broker in any fashion.

His Registrations

  • Edward Jones (2008)
  • NyLife Securities (2009-2016)

The Allegations

In July 2018, Jon Sugick was officially sanctioned by FINRA. The findings in this matter state that he allegedly incorporated a limited liability company without providing written notice to his member firm. When Jon Sugick allegedly finally did provide the firm with notice, he was instructed to dissolve or transfer his ownership. He allegedly ignored the firm’s instructions and continued to act as the company’s CEO. This company involved the selling of unapproved commodity products.

In March 2017, customers alleged that they entrusted a $100,000 principal with Jon Sugick with the belief that he was going to invest in an incredibly low risk investment with monthly returns of 1.5%. Jon Sugick allegedly invested them in these unapproved commodities without their knowledge. This in turn allegedly caused them to lose the entirety of their principal investment. This case was settled for $80,000 in damages.

Due to his alleged actions, Jon Sugick was fined $5,000 and suspended for a period of two months. Jon Sugick had already resigned from his position at NyLife Securities two years prior when the allegations first came to light.

What Does This Mean?

Securities firms, in addition to the Securities and Exchange Commission, require registered securities brokers to disclose all involvement in outside business dealings to their member firms. This is because securities brokers’ outside business ventures can commonly result in financial harm to member firm customers. The main reason behind this is because it often creates a significant conflict of interest for the securities broker. Often times, they might find themselves recommending a privately traded security to their customers because they have a financial stake in the security, because they are receiving cash kickbacks from a third party to recommend said security, or simply because they receive an excessively high commission when doing so.

Conflicts of interest can often cause serious financial harm to member firm customers as it can cause brokers to recommend these securities to them despite how unsuitable they might be. This is why securities brokers are required to disclose all involvement in such dealings to their registered broker dealers; so that these firms can determine if a conflict of interest might actually exist. However, a securities broker forgoing this disclosure does not free their securities firm from responsibility in these matters. Securities firms are required to have adequate procedures in place designed to supervise their registered brokers. Because of this, securities firms are expected to prevent their registered brokers from engaging in any unauthorized activity that can prove harmful to member firm customers.

Oakes & Fosher Can Help

Many investors are unaware of the legal recourse available to them after losing money due to securities broker fraud and/or negligence. The truth is that investors who have lost money in this fashion may actually be entitled to damages.

Oakes & Fosher dedicates its entire legal practice to helping investors across the nation. If you, or someone you know, have lost money investing with Jon Sugick, please contact Oakes & Fosher for a free and private consultation. Oakes & Fosher handles cases on a contingency basis, which means there are no fees charged unless we collect for you.