According to FINRA, Jason K. Adams was assessed a deferred fine of $5,000 and suspended from association with any FINRA member in all capacities for three months for engaging in an outside business activity without providing prior written notice to his member firms.

Adams formed and began operating a company that provided subscription-based investment content for a fee, conducting the activities under a pseudonym. He was the sole owner of the company and was responsible for its day-to-day operations. Adams obtained a federal employer identification number and business bank account for the company, managed payments to and relationships with vendors, and recruited two individuals to prepare content for dissemination to the company's subscribers. The company generated $77,500 in compensation for Adams.

Representatives must provide prior written notice to their firms about outside business activities so firms can evaluate potential conflicts of interest, determine whether the activities involve securities transactions requiring firm approval, and ensure proper supervision. The requirement applies regardless of whether activities are conducted under the representative's own name or a pseudonym.

By conducting this substantial business under a pseudonym without notifying his firms, Adams deprived his firms of the opportunity to evaluate the activity and determine whether it was appropriate or required supervision as "selling away." The use of a pseudonym suggests Adams understood that the activity might be problematic and deliberately concealed it from his firms.

The three-month suspension reflects the seriousness of operating a substantial outside business without firm notice. The fact that Adams established formal business structures (EIN, bank account), recruited content creators, and generated $77,500 in revenue demonstrates this was not an inadvertent or minor oversight—it was a deliberate business venture conducted in violation of notice requirements.

For investors, this case illustrates the risks of investment advice provided through subscription services that may lack proper supervision. The use of pseudonyms should be a red flag, as legitimate financial professionals should be willing to provide investment advice under their real names. Investors should verify whether individuals providing investment content are properly registered and supervised. The suspension is in effect from June 20, 2023, through September 19, 2023.