← Broker database 2023-07-24
Gregory Edward Collins Suspended for Unapproved Outside Business Activities
According to FINRA, Gregory Edward Collins was assessed a deferred fine of $12,500 and suspended from association with any FINRA member in all capacities for six months for earning over $150,000 by engaging in outside business activities outside the scope of his relationship with his member firm.
Collins worked as a lecturer in finance at two universities and at a retail distributor, receiving compensation from all three positions, without disclosing the activities to or getting approval from his firm. In addition, Collins became involved in two other outside business activities before providing notice to his firm and continued after the firm explicitly denied his requests to participate in them.
Collins served as strategic advisor to a hedge fund, providing investment advice and other services, receiving approximately $5,000 each month. He first disclosed this activity to his firm inaccurately and incompletely, describing his role merely as a consultant. Despite the firm denying his request, he continued acting as strategic advisor until the firm initiated an internal investigation. Similarly, Collins created a website to sell online financial education courses. The firm explicitly denied approval, but Collins maintained the website.
Collins also submitted false compliance attestations representing that he had disclosed all outside business activities. As part of his role as strategic advisor, he traded securities on behalf of the hedge fund through its brokerage account at an outside firm without notifying his firm.
This case involves multiple deliberate violations including undisclosed outside business activities, continuing activities after explicit firm denial, false compliance attestations, and trading on behalf of a hedge fund without firm knowledge. The pattern demonstrates serious disregard for firm supervision and investor protection rules.