Jia Cai Lewin Allegedly Engaged in Outside Business Activities, Recommending Customers Invest $6 Million into Three Chinese Pharmaceutical-related Companies
Between January 2010 and October 2010, Jia Cai Lewin, formerly a General Securities Representative of J.P. Morgan Securities LLC (JPM), participated in private securities transactions by soliciting at least one J.P. Morgan customer to invest in three Chinese pharmaceutical-related companies without JPM’s knowledge or approval, according to a recent FINRA Letter of Acceptance, Waiver and Consent (AWC).
Lewin allegedly never informed JPM of her participation in her customer’s investments in these companies, even though JPM policies and procedures prohibited representatives from soliciting firm customers to participate in any private securities transaction not associated with the firm, whether or not the representative received compensation for doing so, the AWC further alleges.
Jia Cai Lewin Allegedly Participated in Private Securities Transactions, Fine and Suspended by FINRA
The AWC explains that NASD Rules prohibit an associated person from ”participat[ing] in any manner in a private securities transaction” unless, prior to participating in the transaction, the associated person provides “written notice to the member with which he is associated describing in detail the proposed transaction and the person’s proposed role therein and stating whether he has received or may receive selling compensation in connection with the transaction.”
Hence, as Lewin was associated with JPM, and allegedly participated in three private securities transactions by soliciting at least one JPM customer to invest approximately $6 million in three Chinese pharmaceutical-related companies without providing proper notice to JPM, Lewin reportedly violated NASD and FINRA Rules.
As a result FINRA has fined Lewin $30,000, and suspended her for two years from association with any FINRA member in any capacity, the AWC reports.
Investor Rights Lawyers Investigating
The Peiffer Rosca Wolf investment rights lawyers often represent investors who lose money as a result of investment misconduct. They take most cases of this type on a contingency fee basis and advance the case costs, and only get paid for their fees and costs out of money they recover for their clients.
Investors who believe they lost money as a result of investment misconduct may contact the investor rights lawyers at Peiffer Rosca Wolf, Alan Rosca or Joe Peiffer, for a free, no-obligation evaluation of their recovery options, at 888-998-0520.
Broker: Jia Cai Lewin
Status: INVESTIGATED by Peiffer Rosca.
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