Editor's Note: The following is a statement released on Monday, September 10, 2012 by the campaign of state Rep. Ryan Mackenzie. Reynard's campaign
Reynard Violating State Regulations for Investment Advisers?
Part 1 in a Series: Who is the real John Reynard?
According to several news reports as well as a press release from the Lehigh County Democratic Party, John Reynard, candidate for State Representative in the 134th District, lists his current occupation as "a personal investment consultant," (Morning Call, 8/2/12) "focusing on socially responsible investing" (South Whitehall Patch, 8/2/12).
According to Section 102(j) of the Pennsylvania Securities Act of 1972, any person "who, for compensation, engages in the business of advising others, either directly or through publication or writings, as to the value of securities or as to the advisability of investing in, purchasing or selling securities, or who, for compensation and as a part of a regular business, issues or promulgates analyses or reports concerning securities" is known as an "Investment adviser."
Further, according to Section 102(j.1) of the Pennsylvania Securities Act of 1972, any person providing these same services who is "employed or associated with an investment adviser" must be registered as an "Investment Adviser Representative" with the state.
According to Section 301(c) of the Pennsylvania Securities Act of 1972, "It is unlawful for any person to transact business in the State as an investment adviser unless he is so registered or registered as a broker-dealer under this act or unless he is exempted from registration. It is unlawful for any person to transact business in this State as an investment adviser representative unless he is so registered or exempted from registration."
A recent search of the Investment Adviser Registration Depository (IARD) fails to find Mr. Reynard currently registered as an Investment Adviser or as an Investment Adviser Representative with the state. Curiously, this same search show that Mr. Reynard was previously registered from June 2008 through December 2009 for employment at a previous job; this would seem to indicate that Mr. Reynard is well aware of the requirement.
So the question becomes: who is the real John Reynard?
Is Reynard an investment adviser or investment adviser representative who should be registered with the state, but is not – thereby breaking the law?
Or is Reynard an investment consultant who gives no advice on investments – thereby not really being what he claims?
"John Reynard has gone to great lengths to try and tout his experience, but his experience seems to be either not following the laws of Pennsylvania or exaggerating his resume for political gain," said Jason Ercole, a spokesperson for the Mackenzie campaign. "Either way, Mr. Reynard has proven the people of the 134th District can't trust him or what he says."