Florida Broker Barred for Failure to Cooperate With FINRA Inquiry

Sherwin Sargeant (CRD # 5096798) is a previously registered securities broker. From December of 2019 to July of 2023, Mr. Sargent was a representative for Planmember Securities Corporation in Orlando, Florida. In November of 2024, this broker was permanently barred from the securities industry by the Financial Industry Regulatory Authority (FINRA) for the failure to cooperate with an investigation in the allegations of undisclosed outside business activities (OBAs). Within this article, our Miami investment fraud attorney discusses the enforcement action in more detail.

Broker Separated From Broker-Dealer After Allegations of Undisclosed OBAs 

As confirmed through FINRA’s BrokerCheck tool, previously registered securities broker Sherwin Sargeant departed from his brokerage firm—Planmember Securities Corporation in Orlando—in June of 2023. Mr. Sergeant was reportedly permitted to voluntarily resign after the compliance department at the broker-dealer discovered a reference to possible undisclosed outside business activities (OBAs) while it was conducting an email review. A more comprehensive background check of this broker by the member firm revealed additional evidence of undisclosed OBAs. After the termination, FINRA launched its own investigation into the alleged wrongdoing by the broker.

Understanding FINRA’s Regulations On Outside Business Activities (OBAs) 

Investors need to be able to rely on financial representatives for accurate, knowledgeable investment advice that comes without undisclosed conflicts of interests. OBAs are an important matter in the eyes of FINRA because they could lead to a conflict of interest. There are securities regulations in place that are designed to prevent conflicts of interest and to protect investors from unethical practices.

Under FINRA Rule 3270, registered representatives must provide written notice to their employing firms before engaging in any OBAs. The broker-dealer is then responsible for either allowing or denying the representative to engage in the proposed OBA. Firms are then responsible for evaluating potential conflict of interest and determining whether to approve or prohibit the activity. If they allow the OBA by their individual member, they are responsible for overseeing it.

 FINRA Sanctions: Sherwin Sargeant Formerly of Planmember Securities Corporation

 Following its investigation into the allegations of misconduct by former Planmember Securities Corporation broker Sherwin Sargeant, FINRA has opted to take enforcement action. The agency emphasizes that Mr. Sargeant failed to cooperate with its investigation into the allegations of unapproved, undisclosed OBAs in violation of FINRA Rule 8210. Without admitting any wrongdoing, the broker consented to the proposed penalties. Along with other things, this includes a permanent bar from associating with any FINRA member firm in any capacity.

 Get Help From a FINRA Arbitration Lawyer in Miami Today

At ​Carlson & Associates, P.A., our Miami FINRA arbitration attorney is a skilled, effective advocate for investors. If you suffered losses due to the misconduct of a financial advisor, we are here to help. Our team puts investors first. Contact us now to arrange a fully confidential review of your case. With an office in Miami, our firm fights for investor rights throughout all of South Florida.

Source:

brokercheck.finra.org/individual/summary/5096798