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TAG | broker failure to disclose facts on Form U4

Oct/12

23

FINRA Warns of Brokers Failing to Disclose Information on Form U4

Comments off · Posted by Securities Lawyer in FINRA

FINRA publishes a quarterly review to provide firms with a sampling of recent disciplinary actions involving misconduct by registered representatives.

“Willfully Failing to Disclose Material Information on a Form U4″

Recently, FINRA settled a matter involving a registered representative who willfully failed to amend his Form U4 to disclose tax liens and judgments, and failed for six months to disclose a bankruptcy filing on his Form U4.

During a five-year period, the Internal Revenue Service (IRS) issued two federal tax liens against the registered representative, the representative entered into two agreed-upon tax judgments and a civil judge entered
a judgment against the representative.

This registered representative failed to disclose the federal tax lien and three judgments on the Form U4 that the representative filed while employed with a member firm for nearly 11 years, notwithstanding that on several occasions, the representative submitted attestations or reports, or met with
firm auditors, and confirmed that he understood his obligations to report liens and judgments and that he had none to report.

While employed by the same member firm, the representative filed a voluntary
petition for bankruptcy protection under Chapter 7 of the Bankruptcy Act. After filing the bankruptcy petition, this representative filed reports with the member firm, in which he attested that he understood his obligation to keep his Form U4 current, and the member firm reminded the representative of his obligation to report bankruptcy filings on the Form U4.

This representative waited approximately six months to report his bankruptcy
filing to his member firm and to amend his Form U4.

FINRA concluded that the representative’s failures to disclose a federal tax lien, judgments, and a bankruptcy filing on the Form U4 were willful and violated Article V, Section 2(c) of NASD’s and FINRA’s By-Laws (applications for registration), NASD Rule 2110‡ (ethical standards) and FINRA Rule 2010 (ethical standards).

FINRA has suspended the representative in all capacities for six months and fined him $10,000.

(This ends the FINRA article.)

Securities Lawyer, Lars K. Soreide, of Soreide Law Group, PLLC, represents clients nationwide. For a free consultation on how to potentially recover your losses call: 888-760-6552, or you may visit our website and complete the online form at: http://www.securitieslawyer.com.

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Jul/12

11

Broker Censured, Suspended and Fined by FINRA for Failure to Report Felony

Comments off · Posted by Securities Lawyer in FINRA

 

Randy Craig Hester (CRD #1382578, Registered Representative, Highland Park, Illinois)

 

was censured, fined $5,000 and suspended from association with any member firm in any capacity for one year. The fine must be paid either immediately upon Hester’s reassociation with a FINRA member firm following his suspension, or prior to the filing of any application or request for relief from any statutory disqualification, whichever is earlier. Without admitting or denying the findings, Hester consented to the described sanctions and to the entry of findings that he willfully failed to notify his member firm that he had been charged with a felony and failed to update his Form U4 to reflect he had been charged with a felony.

These findings stated that when Hester joined another member firm, he submitted a Form U4 on which he falsely responded to the criminal disclosure question by failing to willfully report that he had been charged with a felony. After his firm received a FINRA disclosure review letter in connection with his background check and fingerprint card results, Hester signed and submitted an amended Form U4 reporting his felony charge.

This FINRA suspension is in effect from May 7, 2012, through May 6, 2013.

(FINRA Case #2011029620401)

 

This information was on FINRA’s website under “Disciplinary and Other FINRA Actions, June, 2012.

 

Securities Lawyer, Lars K. Soreide, of Soreide Law Group, PLLC, has represented clients nationwide. Call for a free consultation on how to potentially recover your losses. To speak with an attorney call 888-760-6552, or visit our website at: http://www.securitieslawyer.com.

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Apr/12

16

Miami Rep Fined and Suspended by FINRA

Comments off · Posted by Securities Lawyer in FINRA

The following information is from FINRA’s website under “Disciplinary Actions, March, 2012:”
 
Dominick Amadeo Zavaglia Jr. (CRD #5500264, Registered Representative, Miami, Florida)
 
submitted a Letter of Acceptance, Waiver and Consent in which he was fined $5,000 and suspended from association with any FINRA member in any capacity for six months. The fine must be paid either immediately upon Zavaglia’s reassociation with a FINRA member firm following his suspension, or prior to the filing of any application or request for relief from any statutory disqualification, whichever is earlier. Without admitting or denying the findings, Zavaglia consented to the described sanctions and to the entry of findings that he willfully failed to timely disclose material facts on his Form U4 and also willfully filed an amendment to his Form U4 that was false and misleading.
 
The suspension is in effect from January 17, 2012, through July 16, 2012.
 (FINRA Case #2011029709701)
 
The information from FINRA’s website has ended.
 
Securities Lawyer, Lars K. Soreide, of Soreide Law Group, PLLC, has represented clients nationwide.
For a free consultation with an attorney, please call 888-760-6552, or visit our website at: www.securitieslawyer.com.

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