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TAG | failure to disclose information to FINRA

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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Jun/12

19

California Rep Barred by FINRA

Comments off · Posted by Securities Lawyer in FINRA

Daniel Edward Becerril II (CRD #4489715, Registered Representative, Huntington Beach, California)

has been barred from association with any FINRA member in any capacity and this sanction was based on FINRA’s findings that Becerril made willful misrepresentations and omissions to his customer by telling her that he would invest an $11,500 inheritance in a mutual fund, when in fact he deposited the funds in an account that he controlled, and converted the funds to his own use.

FINRA’s findings stated that Becerril misused his customer’s funds and engaged in an extended course of misconduct to avoid and postpone the return of the customer’s funds.

These findings also stated that Becerril failed to produce documents FINRA requested during an on-the-record interview.

(FINRA Case #2009018944001)

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

Securities Lawyer, Lars K. Soreide, of Soreide Law Group, PLLC, has represented numerous clients nationwide. For a free consultation with an attorney, call us at 888-760-6552, or visit our website at: ww.securitieslawyer.com.

 

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Oct/11

19

Brookstone Securities Fined Again by FINRA

Comments off · Posted by Securities Lawyer in FINRA

 
Brookstone Securities, Inc. (CRD #13366, Lakeland, Florida)
 
submitted a Letter of Acceptance, Waiver and Consent in which the firm was censured and fined $15,000. Without admitting or denying the findings, the firm consented to the described sanctions and to the entry of findings that it failed to disclose and to timely disclose material information and an arbitration on Forms U4, and failed to timely disclose arbitrations on registered representatives’ Uniform Termination Notices for Securities Industry Registration (Forms U5).
 
These findings stated that the firm received separate complaints against a registered representative and reported the statistical and summary information regarding the complaint to FINRA via an NASD Rule 3070 filing, but failed to disclose that the representative was the subject of both complaints. (FINRA Case #2009016158302)

This information appeared on FINRA’s website “Disciplinary Actions” for October, 2011.

Securities Attorney, Lars Soreide, of Soreide Law, PLLC, has represented clients nationwide. If you or a family member have experienced a loss through Brookstone Securities, Inc., call a Securities Arbitration Lawyer for a free consultation on how to potentially recover your losses.  To speak with an attorney, call 888-760-6552, or visit www.securitieslawyer.com.  

Soreide Law Group, PLLC., representing investors nationwide before FINRA  the Financial Industry Regulatory Authority.

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