According to FINRA, John James Hoidas was assessed a deferred fine of $40,000 and suspended from association with any FINRA member in all capacities for 18 months for making unsuitable recommendations in speculative alternative investments to customers, borrowing $10,000 from a customer without firm approval, and causing two firms to maintain incomplete books and records.

Hoidas made unsuitable recommendations in speculative alternative investments that were inconsistent with his customers' investment profiles. He also borrowed $10,000 from one of his firm customers without providing prior written notice or obtaining written approval from the firm. After Hoidas failed to repay the loan, the customer complained to the firm, which ultimately reached a settlement.

Additionally, while registered through one firm, Hoidas communicated with customers regarding securities-related business through text messages using his personal phone. Because the firm had not approved text messaging as a permissible electronic communications channel, it did not capture or maintain Hoidas' text message communications as required. While registered through another firm, Hoidas entered into a commission-sharing agreement with another representative that was not disclosed to or approved by the firm, causing the firm to fail to comply with its recordkeeping obligations.

This case involves multiple serious violations including unsuitable recommendations, borrowing from customers, and causing recordkeeping failures. These violations demonstrate a pattern of disregard for investor protection rules and firm policies.