Aventura, FL, Rep Barred by FINRA

 

submitted a Letter of Acceptance, Waiver and Consent in which he was barred from association with any FINRA member in any capacity. Without admitting or denying the findings, Isaac consented to the described sanction and to the entry of findings that he became associated with a member firm at the behest of a former registered representative.

 

The findings stated that the unregistered person, who also is Isaac’s relative, needed access to a broker-dealer to place trades for his customers. While registered with the firm, Isaac relayed trading instructions from his relative to another representative at the firm, who entered the trades. Immediately after he became registered with the firm, Isaac began transferring hundreds of thousands of dollars of commissions on those securities transactions to his relative.

 

The findings also stated that Isaac knew that his relative surreptitiously controlled the trading in at least some of the customer accounts that generated the commission payments. Even after Isaac learned that FINRA had barred his relative from association with a member firm, he continued to transfer commission monies to him.

 

The findings also included that Isaac signed a fabricated consulting agreement with a company purportedly controlled by another relative to facilitate the transfer of $339,000 in commission money to his other relative; sent $155,000 of commission money to another relative, knowing that the former registered representative was the true beneficiary of that money transfer; gave thousands of dollars of commission money in cash to his relative; and acting on his relative’s instructions, completed sets of trade reports-one designed for the firm that included commission markup and markdown information, and a second set for the customers that did not include that information.

 

FINRA found that Isaac received at least $60,000 in compensation from his relative for these acts.

(FINRA Case #2010020869802)