Derek Border, a registered rep, agreed to a $5K fine and a 3-month suspension to settle FINRA charges he altered or caused to be altered customer documents, including account distribution forms, pertaining to transactions that customers had verbally authorized.

BACKGROUND.    Border, who resides in Huntington, PA, and has been registered since 2007, was associated with Sorrento Pacific Financial from February 2009 through August 2016. Since December 2016, he’s been registered with another FINRA broker-dealer. Border has no prior disciplinary history.

ACCORDING TO FINRA.    Between December 2013 and August 2016, Border altered or caused to be altered at least 11 documents – including account distribution forms - for at least 5 customers - copying and pasting customer signatures and/or altering dates and other information. Border’s customers had verbally authorized the transactions.

This case was reported in FINRA Disciplinary Actions for May 2017.

For details on this case, go to ...  FINRA Disciplinary Actions Online, and refer to Case #2016050071102.

George Divel, a registered rep, agreed to a $5K fines and a 4-month suspension to settle FINRA charges he submitted to his member firm as original documents, photocopied forms previously signed by his customers, pertaining to transactions that customers had authorized and after customers okayed their permission to re-use their signatures.

BACKGROUND.    Divel, who resides in Clarksville, MD, and has been registered since 1998, was associated with Capitol Securities Management from February 2008 to October 2016. He currently is not associated with another FINRA broker-dealer. 

RELEVANT DISCIPLINARY HlSTORY.    FINRA notes the following past disciplinary actions:

• In July 2015, after failing to update his U4 for a civil judgment, FINRA suspended Divel in all capacities for 3 months and fined him $5.000. Maryland sanctioned him for the same issue, suspending him for 4 months and fining him $5,000. The 2 suspensions ran concurrently and Maryland waived collection of its fine. 
• In 2007 and 2008, Maryland and Connecticut securities regulators disciplined Divel for engaging in unauthorized securities transactions in the trust accounts of 2 elderly clients. Maryland suspended him for 90 days and fined him $50K; Connecticut barred Divel.

ACCORDING TO FINRA.    In 2015 and 2016, Divel photocopied forms previously signed by 4 customers, altered certain information on the forms, such as the signature dates and account numbers, and then submitted the altered forms to the firm as originals. The falsified forms included ACH authorization agreements and joint transfer on death account agreements. Divel created and submitted these falsified documents for the convenience of the customers, who authorized the underlying transactions and consented to Divel's re-use of their signatures.

This case was reported in FINRA Disciplinary Actions for May 2017.

For details on this case, go to ...  FINRA Disciplinary Actions Online, and refer to Case #2016049785701.