Ex-GunnAllen boss sets sights on small B-Ds

Sykes bulking up new firm, JHS; set to acquirer broker-dealer of Paulson Capital
NOV 06, 2013
John Sykes, the former chairman and shareholder of GunnAllen Holdings Inc., is back in the business of acquiring small independent broker-dealers. His firm, JHS Capital Advisors Inc., announced last week that it intends to buy the retail-brokerage operations and assets of Paulson Investment Co. Inc., the retail broker- dealer of Paulson Capital Corp. The Paulson broker-dealer will continue to operate independently, according to a statement by the two companies. But after the completion of the transaction, which is subject to the approval of regulators, Paulson representatives will become registered reps of JHS and continue to use the clearing services of RBC Correspondent Services, according to the statement. JHS has about 100 advisers, who manage more than $2 billion. Paulson Investment Co. has about 75 reps, who oversee $1.1 billion in client assets. Terms of the asset purchase weren’t stated in the announcement. “At JHS, we’ve experienced exceptional growth during the past year, and this transaction further enhances our business development strategy,” JHS chief executive Scott Bendert said in a statement. Meanwhile, Paulson will continue to focus on investment banking, Chet Paulson, the firm’s founder, said in the statement. JHS Capital Holdings Ltd. bought Pointe Capital Inc. in December 2009 and renamed it JHS Capital Advisors. Mr. Sykes, who resigned as chairman of GunnAllen Investment Holdings, is the chairman of JHS Capital Holdings. A few months later, GunnAllen Financial Inc., one of the fastest-growing independent broker-dealers of the past decade, collapsed due to costs and legal fees thought to be more than $50 million. Those fees stemmed from actions related to rogue broker Frank Bluestein, as well as failed private investments. Mr. Sykes invested in preferred shares of GunnAllen Holdings in November 2008.

Latest News

SEC bars ex-broker who sold clients phony private equity fund
SEC bars ex-broker who sold clients phony private equity fund

Rajesh Markan earlier this year pleaded guilty to one count of criminal fraud related to his sale of fake investments to 10 clients totaling $2.9 million.

The key to attracting and retaining the next generation of advisors? Client-focused training
The key to attracting and retaining the next generation of advisors? Client-focused training

From building trust to steering through emotions and responding to client challenges, new advisors need human skills to shape the future of the advice industry.

Chuck Roberts, ex-star at Stifel, barred from the securities industry
Chuck Roberts, ex-star at Stifel, barred from the securities industry

"The outcome is correct, but it's disappointing that FINRA had ample opportunity to investigate the merits of clients' allegations in these claims, including the testimony in the three investor arbitrations with hearings," Jeff Erez, a plaintiff's attorney representing a large portion of the Stifel clients, said.

SEC to weigh ‘innovation exception’ tied to crypto, Atkins says
SEC to weigh ‘innovation exception’ tied to crypto, Atkins says

Chair also praised the passage of stablecoin legislation this week.

Brooklyn-based Maridea snaps up former LPL affiliate to expand in the Midwest
Brooklyn-based Maridea snaps up former LPL affiliate to expand in the Midwest

Maridea Wealth Management's deal in Chicago, Illinois is its first after securing a strategic investment in April.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.