Christopher Hawn, a registered representative from Furlong, Pennsylvania, formerly with Alps Distributors, was fined and suspended from FINRA membership as a result of an investigation into allegations that he participated in private securities transactions without obtaining firm approval. Doing so is a violation of FINRA rules. As a result of the investigation Christopher Hawn entered into an acceptance waiver and consent agreement with FINRA in which he neither admitted nor denied the findings, but agreed to a suspension of six months and a fine of $10,000.
In June 2017, Christopher Hawn agreed to the suspension and FINRA published its findings that Hawn failed to inform his broker dealer about his private securities transaction dealings. Hawn had provided an investment opportunity to his uncle and one of his friends, and they invested approximately $100,000 in the transactions. FINRA found that Hawn gave out investment information and advertising materials on the deal that had not been approved by FINRA. These materials failed to disclose the risks inherent in the deal. Such disclosures are important, as they could impact investors’ financial returns.
FINRA also found that Hawn failed to properly disclose his private business dealings to his broker dealer Alps Distributors, and falsified certifications that stated Alps knew about and approved his outside activities.