Securities representative suspended and fined for allegedly falsely certifying that he had personally completed the continuing education required to renew an insurance license
Another person had completed 15 hours of insurance continuing education on his behalf.
FINRA Rule 2010
Former securities representative suspended and fined for alleged Reg BI violations
The representative recommended a series of unsuitable and excessive transactions to a retail customer.
A sell recommendation was made shortly after a purchase on several occasions, which resulted in a realized loss for the customer but generated commissions for the representative.
The trade recommendations led to a turnover rate of 16 and a cost-to-equity ratio exceeding 47% on the account.
FINRA Rule 2010 SEA 1934 Rule 15l-1 SEC Reg BI
Former securities representative barred for allegedly refusing to produce information and documents
FINRA Rule 2010 FINRA Rule 8210
Former products representative suspended and fined for allegedly falsifying documents
The representative placed her personal bank account information on life insurance applications for non-family-member customers in order to make premium payments to them.
The premium payments triggered the payment of advanced sales commissions to the representative, resulting in monetary gains.
FINRA Rule 2010
Hearing panel recommend a suspension and fine for the alleged failing to obtain a customer’s authorization before executing trades on their account
This is an interesting fact pattern involving the depletion of an IRA retirement savings account by an ex-spouse who handled all household finances, but was not an authorized agent for the retirement account.
The firm’s policy made clear that representatives could only accept orders to trade in an account from the owner or an agent authorized in writing.
The firm’s unwritten policy prohibited representatives from even talking on the phone with an unauthorized third party without explicit permission to do so by the account owner.
Despite these policies being in place the representative, claiming that the trading by the ex-spouse had been verbally authorized by the account owner in an initial telephone conversation, facilitated 17 unauthorized transactions.
Note that this is an OHO Decision and not an AWC
FINRA Rule 2010
SP Securities censured and fined for allegedly failing to use an escrow agent to custody customer funds connected to contingency offerings
The funds were deposited into accounts established and controlled by its representatives rather than with the bank that had agreed in writing to hold the funds in escrow.
The firm also failed to promptly return customer funds when the requisite contingency was not met.
FINRA Rule 2010 SEA 1934 Rule 15c2-4 SEA 1934 Rule 10b-9
Former securities representative suspended and fined for allegedly sharing exam content with others
The representative disclosed the contents of a CFP exam that he had taken passing on the information to others through a group messaging platform, text message and over the phone.
FINRA Rule 2010
Former products representative suspended and fined for allegedly participating in private securities transactions without notice or approval
FINRA Rule 2010 FINRA Rule 3280
Former securities principal suspended and fined for allegedly opening and maintaining outside brokerage accounts without notice or approval
The representative opened and maintained 11 outside brokerage retirement accounts in which securities transactions could be effected and in which he had a beneficial interest.
He did not provide notice of or disclose these accounts to the executing financial institutions or to his firm.
The representative also failed to disclose his outside business activities.
FINRA Rule 2010 FINRA Rule 3210
Former securities representative suspended and fined for allegedly falsifying a personal bank account statement
The statement had been submitted as part of a heightened supervision plan.
FINRA Rule 2010
| Unless otherwise noted all respondents accepted and consented to FINRA’s findings without admitting or denying them. |