Background Of Andrew J. LeBlanc II (CRD No. 2607117)
LeBlanc first became registered with FINRA in 1995 as a General Securities
Representative (GSR) through Merrill Lynch, Pierce, Fenner & Smith Inc. LeBlanc
voluntarily resigned from Merrill Lynch on March 31, 2017. Merrill Lynch submitted a
Form U5 terminating his registration on April 4, 2017. LeBlanc became registered with
FINRA as a GSR through another FINRA member on April 7, 2017. In June 2017, Merrill Lynch amended LeBlanc’s Form U5 to disclose that it had received a complaint
from one of LeBlanc’s customers.
Activity(s) Reported – Andrew J. LeBlanc II
NASD Rule 3040 prohibits any person associated with a member from “participat[ing] in
any manner in a private securities transaction” without first providing written notice to
his member firm.1 NASD Rule 3040(e) defines a private securities transaction as any
securities transaction outside of the regular course or scope of an associated person’s
employment with a member. Participation in a private securities transaction includes not
only making the sale, but also, for example, “referring customers, introducing customers
to the issuer, [and] arranging and/or participating in meetings between customers and the
issuer.”2 A violation of NASD Rule 3040 is also a violation of FINRA Rule 2010.
Between January 2012 and August 2013, LeBlanc participated in two private securities
transactions involving $1.75 million in securities. First, LeBlanc participated in the
purchase by a customer of a $500,000 membership interest in a closely held film
company organized as an LLC. Second, LeBlanc participated in the sale of $1.25 million
in preferred stock in a closely held men’s apparel company to an investor group
consisting of the first customer and two other customers. He used the firm’s email system
to participate in these transactions.
LeBlanc neither originated the customers’ investments nor did he recommend that the
customers purchase the securities. However, he participated in the purchases by
arranging for and attending a meeting between the first customer and the president of the
closely held LLC, and by attending a meeting between the two other customers and a
major shareholder of the second company. He received legal documentation from the
customers’ attorney and forwarded that documentation to his clients. He was instructed
by two of his clients to pay for the investments from their firm accounts. He also
discussed the investments with executives of both companies; the customers; and the
customers’ attorney. Although the companies are still operating, the three customers are
unlikely to receive any return on these investments.
All three customers were pre-existing customers of the firm at the time of the sales; were
experienced investors, had a high net worth, and, in connection with these investments,
were represented by counsel. LeBlanc received no compensation for his participation in
Similar Review: Established Titles – Is It Legitimate?
LeBlanc did not provide written notice to the firm prior to his participation in the private
securities transactions, as required by NASD Rule 3040 and the firm’s written supervisory procedures. During June 2013 and May 2014, LeBlanc also failed to list his
involvement with these private investments on Firm annual certifications calling for him
to disclose his involvement with securities transactions away from the firm.
By virtue of the foregoing, LeBlanc violated NASD Rule 3040 and FINRA Rule 2010.
Penalties And Sanctions
- A suspension from association with any FINRA member, in all capacities,
for 6 months; and
- A $20,000 fine.
Respondent agrees to pay the monetary sanction upon notice that this AWC has been
accepted and that such payment is due and payable. Respondent has submitted an
Election of Payment form showing the method by which he proposes to pay the fine
Respondent specifically and voluntarily waives any right to claim an inability to pay, now
or at any time hereafter, the monetary sanction imposed in this matter.
Respondent understands that if he is barred or suspended from associating with any
FINRA member, he becomes subject to a statutory disqualification as that term is defined
in Article III, Section 4 of FINRA’s By-Laws, incorporating Section 3(a)(39) of the
Securities Exchange Act of 1934. Accordingly, he may not be associated with any
FINRA member in any capacity, including clerical or ministerial functions, during the
period of the bar or suspension. See FINRA Rules 8310 and 8311.
Recent Illegal Activity(s)Of The Individual/Firm
Between January 2012 and August 2013, while associated with Merrill Lynch, LeBlanc participated in two private securities transactions involving $1.75 million in sales to three 2 customers without providing written notice to the firm. Accordingly, LeBlanc violated NASD Rule 3040 and FINRA Rule 2010.
Andrew J. LeBlanc II has been involved in fraudulent activities and is an unsafe professional entity. We strongly recommend you avoid any association with such a shady figure.
- Shady Activity
- Swindling Activity Reported By Clients
- Under Govt. Organization's Radar
- High Risk of Fraud