What You Need to Know
- The former broker at Primerica subsidiary PFS Investments was charged with three felonies.
- The ex-broker had 30 days to disclose to the firm he was charged with the felonies and did not do so.
- His felony conviction disqualifies him from associating with a FINRA member for 10 years.
The Financial Industry Regulatory Authority fined a former broker at Primerica subsidiary PFS Investments (PFSI) $5,000 and suspended him for six months for not disclosing to the firm that he was charged with three felonies and pleaded guilty to one of them, according to the regulator.
The former broker, Jason Vincent McHenry, was convicted of unlawful intercourse with a minor, according to a disclosure on his report at FINRA’s BrokerCheck website. The two other felonies — for sodomy with a person under 18 and possession of material depicting a minor in a sexual act — were dismissed, according to BrokerCheck.
Without admitting or denying the findings of FINRA’s investigation, McHenry signed a FINRA letter of acceptance, waiver and consent March 18 in which he consented to the imposition of FINRA’s sanctions. FINRA signed the letter Wednesday.
McHenry is no longer registered as a broker, according to BrokerCheck. The fine will come due if he reassociates with a member firm. Under FINRA rules, the felony conviction disqualifies him for 10 years from associating with a member firm.
McHenry could not immediately be reached for comment and there was no attorney representing him noted on the AWC letter. Primerica did not immediately respond to a request for comment.
Failure to Disclose
McHenry was registered with PFSI from November 2015 until November 2020, according to his BrokerCheck report. In a Form 5 termination notice dated Nov. 13, 2020, PFSI reported McHenry’s discharge “due to the nature of the disclosure event,” according to the FINRA AWC letter.