According to FINRA, John Jude Butler (CRD #2689182) of Beverly Hills, Florida, was suspended for three months and assessed a deferred fine of $5,000 for failing to provide prior written notice to his member firm of outside business activities and for making false attestations on compliance questionnaires. The action, effective March 19, 2024, found that Butler engaged in consulting services beyond his approved insurance business without notifying his firm. Specifically, Butler assisted a customer in selling portions of a civil money judgment to a third party, an activity that fell outside the scope of his approved outside business activities. In connection with these unapproved consulting services, the customer paid Butler over $538,000. Despite receiving these substantial payments, Butler falsely affirmed on his firm's compliance questionnaires that he had no undisclosed outside business activities. FINRA rules require registered representatives to provide prior written notice to their member firms before engaging in any outside business activity. This requirement, rooted in FINRA Rule 3270, exists to protect investors by ensuring that member firms can supervise the full scope of their representatives' business dealings and identify potential conflicts of interest. When representatives fail to disclose outside business activities, firms lose the ability to evaluate whether those activities pose risks to customers or create conflicts that should be managed or prohibited. Butler's false attestations on compliance questionnaires compounded the violation by actively concealing the undisclosed activities from his firm's compliance oversight. Compliance questionnaires are a critical supervisory tool that firms rely upon to monitor their representatives' activities, and providing false responses undermines the entire compliance framework. Butler's suspension was effective from April 1 through June 30, 2024. Investors should understand that when their financial professional engages in undisclosed outside business activities, it may indicate a lack of transparency that could affect the advice and services they receive. Investors are encouraged to verify their financial professional's background and disclosures through FINRA BrokerCheck. FINRA Case #2022073944702 provides further details on this matter.