FINRA

Respondent Mason failed to respond to FINRA request for information.

Letter

Bar (Permanent)

All capacities

Indefinite

6/29/2020

Pursuant to FINRA Rule 9552(h) and in accordance with FINRA's Notice of Suspension and Suspension from Association letters dated March 25, 2020 and April 20, 2020, respectively, on June 29, 2020, Mason is barred from association with any FINRA member in all capacities. Respondent failed to request termination of his suspension within three months of the date of the Notice of Suspension; therefore, he is automatically barred from association with any FINRA member in all capacities.

FINRA

Without admitting or denying the findings, Mason consented to the sanctions and to the entry of findings that he borrowed a total of $108,360 from his member firm's customer without providing prior notice to, and receiving written approval from the firm, and he modified the loan terms of a promissory note, of one of the loans, without notifying the firm. The findings stated that the firm's client was elderly and a family friend of Mason, who was also his client. Mason used the borrowed funds for personal expenses, and he repaid the client in full, with interest. Mason also falsely stated on the firm's annual compliance questionnaires that he had not borrowed from or lent to any firm customers.

Acceptance, Waiver & Consent(AWC)

Civil and Administrative Penalty(ies)/Fine(s)

$5,000.00

Suspension

All capacities

Four months

7/15/2019

11/14/2019

LPL FINANCIAL LLC

Discharged

Borrowing money from a client and being a joint owner on client bank account, in violation of Firm policy.

Western Wealth Management, LLC

Discharged

Borrowing money from a client and being a joint owner on a client bank account.

CUSTOMER ALLEGES THE VARIABLE LIFE INSURANCE POLICY PURCHASED IN MAY 2002 WAS NOT EXPLAINED CORRECTLY BY THE REPRESENTATIVE. NO SPECIFIC COMPENSATORY DAMAGES WERE ALLEGED.

CLIENT ALLEGES THE TERMS OF THE VARIABLE LIFE POLICY HE PURCHASED IN AUGUST 2003 WERE NOT DISCLOSED TO HIM.

$18,847.00

CLIENT ALLEGES THAT MR. MASON DID NOT MAKE HER AWARE THAT HER VARIABLE UNIVERSAL LIFE INSURANCE POLICY PURCHASED IN MARCH 2001 WAS TIED INTO THE STOCK MARKET. CLIENT ALSO ALLEGES THAT MR. MASON NEVER EXPLAINED THAT HER PREMIUMS SHOULD GO UP EACH YEAR TO AVOID THE POLICY FROM LAPSING AND THAT SHE LEARNED THAT MR. MASON SET UP A PIN NUMBER UNDER HER HAME FOR THIS ACCOUNT WITHOUT DISCLOSING THIS TO HER.

$14,683.00

CLIENTS ALLEGE THAT THE VARIABLE UNIVERSAL LIFE INSURANCE POLICY PURCHASED IN FEBRUARY 2002 WAS NOT APPROPRIATE FOR HER FINANCIAL SITUATION OR GOALS AND THAT SHE BELIEVES THE POLICY WAS SOLD SOLELY TO INCREASE MR. MASON'S COMMISSION.

$24,200.05

CLIENT IS ALLEGING THAT SHE DID NOT NEED LIFE INSURANCE NOR CAN SHE AFFORD IT. SHE BELIEVES MR. MASON MISREPRESENTED HIMSELF AND HIS COMPANY BY INDICATING AN ASSOCIATION WITH 'PERA'.

$16,216.76

BASED UPON A FULL INVESTIGATION OF THE CLIENT'S ALLEGATIONS, IT WAS DETERMINED THAT THE REPRESENTATIVE ACTED APPROPRIATELY IN THE SALE OF THE LIFE INSURANCE POLICY. IT WAS ALSO DETERMINED THAT THE REPRESENTATIVE CLEARLY DISCLOSED HIS AFFILIATION WITH NEW ENGLAND SECURITIES AND EXPLAINED TO THE CLIENT THAT HE WAS NOT AFFILIATED WITH 'PERA'. THE COMPLAINT WAS DENIED.