Lewis N. Lester Review Summary
If you are in the market for a good financial advisor or firm, then avoid Lewis N. Lester at all costs. Previous clients have reported and complained about serious financial damages and/or fraud. Lewis N. Lester is also under FINRA’s radar. Previously FINRA has uncovered well-reputed firms and advisors to be guilty of shocking crimes, which include but are not limited to:
- Siphoning Of Client’s Funds
- Dereliction of Duty
Nefarious Background Of Lewis N. Lester
Lester first became registered with FINRA in 1987. Lester was registered as a General
Securities Representative and General Securities Principal through an association with
Olden Lane Securities, LLC (CRD No. 173847) from August 2017 to November 2018.
Lester is not currently registered or associated with a FINRA member firm. However,
Lester remains subject to FINRA’s jurisdiction pursuant to Article V, Section 4 of
Criminal Activity(s) Reported – Lewis N. Lester
Lester violated FINRA Rules 3280 and 2010.
FINRA Rule 3280 requires that prior to participating in a private securities transaction, a
person associated with a member firm shall provide written notice to his or her firm
“describing in detail the proposed transaction and the person’s proposed role therein[.]”
FINRA Rule 3280 defines a private securities transaction as “any securities transaction
outside the regular course or scope of an associated person’s employment with a
member[.]” A violation of FINRA Rule 3280 is also a violation of FINRA Rule 2010,
which requires FINRA members and associated persons to “observe high standards of
commercial honor and just and equitable principles of trade.”
Upon joining Olden Lane in August 2017, Lester disclosed to the fn-m his role as CEO of
an LLC (the LLC) that provided consulting services to credit unions. Lester also had an
ownership interest in the LLC, which he disclosed to the firm. Prior to Lester’s association with Olden Lane, the LLC had sold ownership units, which were securities sold pursuant to Regulation D of the Securities Act of 1933, to passive investors. The passive investors in the LLC were federally chartered credit unions.
In December 2017 and June 2018, Lester, while registered through Olden Lane,
participated in two private securities transactions by facilitating additional sales of
ownership units in the LLC. Specifically, in late 2017, one of the existing investors in the
LLC contacted Lester regarding a potential additional investment. On December 1, 2017,
Lester, in his role as CEO of the LLC, signed an addendum to the investor’s original
subscription agreement, pursuant to which the investor made an additional $500,000
investment and received additional ownership units in the LLC. In June 2018, the same
investor again contacted Lester to discuss a further investment in the LLC. On June 29,
2018, Lester, on behalf of the LLC, signed another addendum to the investor’s original
subscription agreement, pursuant to which the investor made an additional $1,000,000
investment and received additional ownership units in the LLC. The additional ownership
interests purchased by the investor in December 2017 and June 2018 were securities.
Lester did not receive any commissions or other payments for his role in these
Lester’s participation in these two transactions, while he was associated with Olden Lane,
was outside the regular course and scope of his employment with the firm. Lester did not
provide prior written notice to Olden Lane of these transactions or of his role in them.
Penalty For The Terrible Crimes
- A one-year suspension from associating with any FINRA member in any capacity;
- A $5,000 fine.
The fine shall be due and payable either immediately upon reassociation with a member
firm or prior to any application or request for relief from any statutory disqualification
resulting from this or any other event or proceeding, whichever is earlier.
Respondent specifically and voluntarily waives any right to claim an inability to pay, now
or at any time after the execution of this AWC, the monetary sanction imposed in this
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
In December 2017 and June 2018, while registered through Olden Lane, Respondent
participated in two private securities transactions without providing prior written notice
to his firm, in violation of FINRA Rules 3280 and 2010.