FINRA Suspends Ex-NYLife Securities Broker After Flurry of Lies

But Kendrick did not disclose his participation in TC to NYLife until August 2015, when he first requested the firm's approval of TC as an outside business activity, FINRA said. Kendrick also did not tell NYLife that he commenced his TC-related activities in November 2011 or that he had personally invested and facilitated the investment of others through TC, according to FINRA. Although the firm did not approve TC as an outside business activity, Kendrick continued his TC-related activities and continued to engage in outside business activities through TC until about January 2017, when he was again instructed by the firm to remove himself from TC's registration" with the Louisiana secretary of state, FINRA said.

Kendrick also "made false statements to the firm on six annual compliance questionnaires and five branch audit questionnaires concerning his outside business activities," according to FINRA.

Between June 2010 and May 2018, Kendrick participated in nine private securities transactions without providing prior written notice to or receiving written approval from NYLife, FINRA said. Meanwhile, Kendrick and five other individuals (including four of NYLife's customers) also used another investment vehicle, known as "SCV," to facilitate one of the investments. Through TC and SCV, "Kendrick solicited, recommended and facilitated investments totaling $290,000 in three private placements, including investments made by five Firm customers who were members of TC and SCV," according to FINRA.

Kendrick's participation in those private securities transactions included, among other things: "selecting and recommending investment opportunities to TC and SCV members; circulating information and scheduling meetings regarding the investment opportunity; collecting investment checks; and completing and signing investor questionnaires and stock purchase agreements on behalf of TC," according to FINRA. Kendrick also personally invested a total of $106,297 in six different private placements, it said, adding that each of those investments were securities for which Kendrick and the other investors received equity interest in the form of membership units, shares and/or warrants.

In March 2018, NYLife conducted a review of Kendrick's business and identified Kendrick's continued activities on behalf of TC and SCV. One month later, Kendrick was interviewed by the firm as part of its investigation and Kendrick told personnel there that he was just a passive investor in TC and did not own any investments through the club, despite managing TC's activities and personally investing in at least three private placements through TC, according to FINRA.

Kendrick also falsely told NYLife personnel he didn't start SCV or solicit investors in it, according to FINRA. Kendrick also failed to disclose all his personal investments away from NYLife, FINRA said.

Kendrick isn't currently registered or associated with a FINRA member firm. His attorney, Michelle Atlas of AdvisorLaw in Westminster, Colorado, didn't immediately respond to a request for comment.

NYLife Securities also didn't immediately respond to a request for comment. Earlier this month, the firm was censured by FINRA over its failure to enforce its written procedures for supervising what FINRA said were "higher-risk" mutual fund sales from September 2014 to December 2016 that were "subject to significant volatility."