[Image:  by Marcus Connor / BrainlessTales.com]

by Howard Haykin

Every month, FINRA reports that a dozen or so registered individuals have been barred from the industry for failing to cooperate with a regulatory investigation. Below are 15 such cases that appear in FINRA's Report of Disciplinary Actions for May 2018. In some cases, the individual is "dead to right" and believes cooperation with FINRA is a fruitless endeavor. Others, like a broker wih 33 years' experience, may be saying "it's time to retire, so why bother." 

In any event, "the jig" and "the gig" are up for each of the following individuals:

1. A broker with Morgan Stanley, with 33 years’ experience, was barred from the industry for refusing to appear for a FINRA on-the-record testimony in connection with an investigation into whether he had accepted loans from a customer. (FINRA AWC #2017053976201)

2. A broker with JPMorgan Securities, with 11 years’ experience, was barred from the industry for failing to provide information and documents during an investigation into his potential failure to timely disclose on his Form U4 10 unsatisfied tax liens and civil judgments, as well as the circumstances surrounding 12 customer complaints. (FINRA AWC #2016048870601)

3. A broker with Madison Avenue Securities, with 31 years’ experience, was barred from the industry for failing to produce information and documents during an ongoing examination to determine whether he engaged in unauthorized trading in customers’ accounts, exercised discretion without written authorization, or otherwise acted in violation of FINRA rules. (FINRA AWC #2017052696401)

4. A broker with MSI Financial Services (formerly MetLife Securities), with 16 years’ experience, was barred from the industry for failing to timely respond to requests for information and documents related to an investigation into whether he had failed to disclose outside business activities to his member firm. (FINRA AWC #2016049508602)

5. A nonregistered individual with an unnamed firm, was barred from the industry for failing to appear for FINRA-requested testimony in connection with an investigation into his member firm. (FINRA AWC #2016047624601)

6. A broker with PHX Financial, with 13 years’ experience (at 17 firms!), was barred from the industry for failing to produce documents and information in connection with an ongoing investigation regarding his trading activity in customer accounts. (FINRA AWC #2017052732401)

7. A broker with Royal Alliance, with 43 years’ experience, was barred from the industry for failing to provide documents and information in connection with an investigation into, among other things, the circumstances of his resignation from his member firm. In its Form U5, his firm reported that he resigned after a customer allegation of fraud and breach of contract related to investments away from the firm. (FINRA AWC #2017056769401)

8. A broker with Fortune Financial Services, with 30 years’ experience, was barred from the industry for providing an incomplete response to requests for information and documents in connection with an amended Form U5 filed by his member firm that stated that he had been charged with one count of felony fraud. (FINRA AWC #2017056082101)

9. A broker with Vanguard Marketing Corporation, with 2 years’ experience, was barred from the industry for refusing to appear for on-the-record testimony in connection with FINRA’s inquiry into his conduct during a Series 65 qualification exam. (FINRA AWC #2017056096701)

10. A nonregistered individual with Merrill Lynch, Pierce, Fenner & Smith was barred from the industry for refusing to appear for on-the-record testimony in connection with a review of her conduct while sitting for the Series 7 General Securities Rep exam. (FINRA AWC #2017055929001)

11. A broker with Westpark Capital, with 5 years’ experience (with 6 firms!), was barred from the industry for failing to produce documents and information, and for failing to appear for on-the-record testimony, in connection with an investigation regarding his outside business activities. (FINRA AWC #2017056329801)

12. A broker with State Farm VP Management, with 2 years’ experience, was barred from the industry for refusing to provide documents and information in connection with an investigation into the circumstances surrounding his separation from his member firm. (FINRA AWC #2017055673401)

13. A broker with LPL Financial, with 16 years’ experience, was barred from the industry for refusing to appear for on-the record testimony in connection with an investigation into potential unauthorized trading in customer accounts. (FINRA AWC #2017053526401)

14. A broker with Morgan Stanley, with 9 years’ experience (with 8 firms!), was barred from the industry for refusing to appear for on-the-record testimony in connection with an investigation into whether or not he and others had made unsuitable options recommendations to customers. (FINRA AWC #2016049937901)

15. A broker with Morgan Stanley, with 29 years’ experience, was barred from the industry for refusing to provide complete documents and information during an investigation into allegations that he was involved in an undisclosed outside business activity, and that he solicited a loan from a customer for that outside business activity. (FINRA AWC #2016052579701)

These cases were reported in FINRA Disciplinary Actions for May 2018.

For details on any case, go to ...  FINRA Disciplinary Actions Online, with reference to the particular Case/AWC Number.