← Broker database 2026-04-24
Ohio Broker James Ptacek Suspended for Undisclosed Outside Business Activity
According to FINRA, James Robert Ptacek Jr. was assessed a deferred fine of $5,000 and suspended from association with any FINRA member in all capacities for 45 days (April 24, 2026, through June 7, 2026), following an April 24, 2026 AWC.
Ptacek engaged in an outside business activity (OBA) by serving as a member of the board of directors and treasurer of a for-profit streaming platform organized as a limited liability company, without providing prior written notice to his member firm. In these roles, he was involved in the company's finances and communicated with certain firm customers who had invested in the company.
FINRA's OBA disclosure rules require registered persons to notify their member firm in writing before engaging in any outside business activity. These requirements exist for important reasons: outside activities can create conflicts of interest between a broker's obligations to customers and his interests in an outside business, and they may involve the solicitation of investment activity that should be conducted through the firm's regulated channels. By providing advance notice, firms can assess whether an outside activity is appropriate, whether it creates conflicts that need to be managed or disclosed to customers, and whether the activity involves securities transactions that require firm oversight.
Here, Ptacek's role as treasurer of a company in which some of his firm customers had invested created precisely the type of conflict that OBA disclosure requirements are designed to surface. He had financial responsibilities at a company where his customers had invested, creating an inherent tension between his fiduciary-type obligations to customers and his interests as a company officer.
Compounding the violation, Ptacek falsely attested in at least one firm compliance questionnaire that he was not involved in any undisclosed OBAs—a misrepresentation to his own firm.
Investors should be aware that brokers with undisclosed outside business activities may have conflicts of interest that affect the advice they give. FINRA BrokerCheck discloses registered persons' outside business activities, and investors are encouraged to review these disclosures before establishing any financial relationship.