According to FINRA, Christopher Delbert Martin has been fined $15,000 and suspended from association with any FINRA member for two years for participating in undisclosed private securities transactions.

Martin co-founded a licensed cannabis-related company and served as an executive officer and board member, which he disclosed to his firm as an outside business activity. However, he did not disclose his participation in the company's capital raising efforts or receive approval for such participation.

Martin participated in selling $4,436,381 of company stock through a private offering. He introduced investors to the opportunity, including 19 of his own customers at the firm. He presented information to prospective investors, answered questions about the offering and business, and facilitated transactions by accepting subscription agreements.

Although Martin provided written disclosures to investors stating he was acting as a company officer rather than a financial advisor, and that his firm was not involved, he still failed to obtain firm approval as required. He also falsely attested on annual compliance questionnaires that he had not engaged in private securities transactions.

When securities professionals participate in offerings outside their firm's oversight, investors lose important protections. This case illustrates why proper disclosure and approval are required even when the representative has a legitimate business role with the issuer.