Regulators have barred two former Raymond James financial advisors from the industry for allegedly investing clients’ money in unapproved products and refusing to cooperate with subsequent investigations.
Brokerage industry self-regulator FINRA disclosed the disciplinary actions against Bryan Noonan and Thomas Reyes this week, stating that although their cases appear unconnected, both advisors departed from the brokerage firm amid allegations they directed clients into unauthorized investment vehicles.
Reyes, based in Nebraska, left Raymond James in March 2022. The following month, the firm revealed it was conducting a review focused on “potential undisclosed outside business activity.” In August of that year, Raymond James amended Reyes’ termination notice, noting he had “sold annuities not on the firm’s approved product list away from the firm.”
Noonan, who worked with Raymond James in Arizona, voluntarily left the firm in March 2024 while an internal review was underway “relating to possible violations of the firm’s policies on outside business activities and selling away,” according to a FINRA letter detailing the matter.
Reyes and Noonan both accepted their bans from the industry without admitting or denying misconduct.
Noonan and a lawyer for Reyes did not immediately respond to requests for comment.
FINRA says it began investigating Reyes after reviewing his termination notice from Raymond James and decided to bar him after he refused to submit to on-the-record testimony.
A similar scenario occurred with Noonan, who FINRA says did not respond to investigators’ requests for documents and information.
FINRA says both advisors violated the regulator’s general professional conduct rule and Rule 8210, which requires registrants to comply with FINRA investigations.
Raymond James did not immediately respond to a request for comment.
This development serves as a crucial reminder for RIAs about the importance of adhering to regulatory guidelines and firm policies. Unauthorized investment activities not only breach client trust but also jeopardize the advisor's professional standing and career. As stewards of client assets, it is imperative for advisors to maintain transparency, follow approved investment lists, and fully cooperate with regulatory bodies to uphold the integrity of the financial industry. The cases of Reyes and Noonan underscore the severe repercussions of failing to adhere to these standards, emphasizing the need for vigilance and compliance in all professional activities.
