Ex-LPL Rep Suspended by FINRA Over Unapproved Soccer Team Investments

In September 2014, Kallis solicited two investors, one of whom was a customer of LPL and “both of whom were long-time friends, to each purchase $25,000 interests in a LLC formed to invest in” the soccer team, according to FINRA. During the period in question, Kallis participated in additional investments by both investors in the LLC, according to FINRA. Both clients invested an aggregate total of $95,000, the regulator said.

“Kallis participated by, among other things, providing the investors with the subscription agreement and other written materials and by communicating with them verbally and by email to discuss the investments,” according to FINRA. The rep “did not receive any compensation for soliciting the investments, nor did he represent or otherwise suggest that the investments had been approved by” LPL, the regulator said. “However, Kallis failed to provide the Firm with prior notice or obtain the Firm’s advance approval before participating, as required,” according to FINRA.

Kallis also “incorrectly answered ‘no’” on LPL compliance questionnaires during the period in question that asked him whether he had participated in any private securities transactions away from the firm, according to FINRA.

As a result of his actions, Kallis violated NASD Rule 3040 and FINRA Rules 3280 and 2010, said.