An irreverent Wall Street Blog
by Bill Singer
Join BrokeAndBroker blog on Facebook  Follow the BrokeAndBroker blog on Twitter  Connect with BrokeAndBroker on LinkedIn  Join Bill Singer on Google+  Subscribe to RSS Feed

Pain Pills Put Stockbroker In A World Of FINRA Hurt
Written: July 19, 2012


For the purpose of proposing a settlement of rule violations alleged by the Financial Industry Regulatory Authority (“FINRA”), without admitting or denying the findings, prior to a regulatory hearing, and without an adjudication of any issue, James (‘Jeb”) Edward Barram submitted a Letter of Acceptance, Waiver and Consent (“AWC”), which FINRA accepted. In the Matter of James (“Jeb”) Edward Barram,Respondent (AWC 20110283273, July 12, 2012).

In 2002, Barram entered the securities industry in  a non-registered capacity and, thereafter, returned to the industry in 2005 as a registered representative trainee with FINRA member firm State Farm VP Management Corp. (“State Farm”),where he became registered in February 2008 until June 17, 2011.

Medical Pain

Sometime around November 2006, Barram sustained a significant neck injury during an athletic event, and a doctor prescribed a long-term regimen of prescription pain medication.

Legal Pain

On or about April 9, 2010, Barram was arrested in Marion County, OR for forging prescriptions for prescription medications on two occasions on March 4, 2010. On April 29, 2010, Barram was arraigned and charged with one misdemeanor count each ofAcquiring a Controlled Substance by Fraud and Forgery in the Second Degree.

On June 6, 2010, the misdemeanor counts were amended to two felony counts of Tampering with Drug Records, which involves “false or forged” prescription or written orders. On same day of the amended counts, Barram pled guilty to two reduced misdemeanor counts of Tampering with Drug Records.


On or about January 18, 2006, Barram signed and submitted an initial Form U4 for registration with State Farm, to which the following questions were answered “NO” (which, at that time, were correct responses)L

  • Question 14A(l)(b): “Have you ever been charged with any felony?”
  • Question 14B(l)(a): “Have you ever been convicted of or pled guilty or nolo contendere (“no contest”)…to amisdemeanor involving…any fraud, false statements or omissions, wrongful taking of property, bribery, perjury, forgery, counterfeiting, extortion, or a conspiracy to commit any of these offenses?”
  • Question 14B(l)(b): “Have you ever been charged with amisdemeanor specified in [question] I4B(l)(a)?”

Form U4 contains the following attestation paragraph:

I understand and certify that the representations in this form apply to all employers with whom I seek registration as indicated in Items 4 and 10 of this form. I agree to update this form by causing an amendment to be filed on a timely basis whenever changes occur to answers previously reported. Further, I represent that, to the extent any information previously submitted is not amended, the information provided in this form is currently accurate and complete.

SIDE BAR:  FINRA has several rules that set forth the obligations of registered persons to timely update their Form U4:

Article V, Section 2 of the FINRA By-Lawsrequires applicants to disclose certain information and to keep their application current through the timely filing of amendments. Pointedly, applicants are required to file an application amendment within 30 days of learning of facts that are required to be disclosed. If such amendment involves a statutory disqualification, such amendment shall be filed not later than ten days after such disqualification occurs.

FINRA Rule 1122 prohibits a member firm or an associated person from filing with FINRA information with respect to membership or registration which is incomplete or inaccurate so as to be misleading, or which could in any way tend to mislead, or fail to correct such filing after notice.

FINRA Rule 2010 requires that a member, in the conduct of its business, shall observe high standards of commercial honor and just and equitable principles of trade.  This rule has been applied to associated persons as well.

The AWC alleged that between April 29, 2010, and June 17, 2011, Barram failed to report his misdemeanor fraud and forgery charges to State Farm and failed to amend his Form U4 to include an affirmative response to Question 14B(I)(b) to reflect his April 29, 2010 misdemeanor fraud and forgery charges.

Moreover, the AWC alleged that between June 6, 2010 and June 17, 2011, Barram failed to:

  • report his felony charges of Tampering with Drug Records to State Farm; and
  • report his guilty plea to two misdemeanor counts of Tampering with Drug Records; and
  • amend his Form U4 to include an affirmative response to:
  • Question 14A(l)(b) to reflect his June 6, 2010 felony charges for Tampering with Drug Records; and
  • Question 14B(l)(a) to reflect his June 6, 2010 guilty plea to two misdemeanor counts of Tampering with Drug Records, but failed to do so.

For the reasons cited above an in accordance with the terms of the AWC, FINRA imposed upon Barram a $2,500 fine and a three-month suspension from association with any FINRA member in any capacity.

Bill Singer‘s Comment

Street Sweeper” has regularly covered these FINRA U4 criminal disclosure cases. They do not discriminate between large firms and indie/regionals.  Folks at Merrill Lynch, Morgan Stanley, JP Morgan, Wells Fargo, Citigroup, and other major organizations are just as apt to fall victim to the intricacies of what needs to be disclosed and when as their counterparts at smaller shops. For more background, read these columns:


Previous Entries
May 29, 2015
On May 28, 2015, the United States Attorney for the Southern District unsealed a criminal Complaint charging Defendants Lin Miao, Yong Jason Lee a/k/a... Read On
May 29, 2015
If there is a shortcut through the forest of continuing education, a detour around career qualification exams, or any way in which to avoid and evade ... Read On
May 28, 2015
Ever the wordsmith and societal critic, author Charles Dickens is credited with saying that "charity begins at home and justice begins next door." Fra... Read On
May 27, 2015
If Hillary Clinton could use a personal server for her emails, why can't a registered representative use an AOL email account? Then there's the whole ... Read On
May 26, 2015
Stockbroker, Compliance, Legal, and Regulatory JobsEmployment Page Jobs#wallstreetjobs @brokeandbrokerNOTICE TO EMPLOYERS: Brok... Read On
May 23, 2015
SEC Commissioner Stein Stands Alone In Her Defense Of The Investing Public And IndustryOne, and only one, Securities and Exchange Commissioner got it ... Read On
May 22, 2015
One, and only one, Securities and Exchange Commissioner got it right. To her ever-lasting credit and to the shame of her colleagues, Commissioner Kara... Read On Job Search

Related Topics
Tag Cloud
Internet FINRA Bear Stearns Bloomberg SEC NASD NYSE Money Laundering Due Diligence Waiver Forbes China Broy Woody Allen Madoff NAC NPR Marketplace Stanford UBS Ketchum Antitrust NASDAQ RRBDLAW Schapiro Bill Singer BrokerAndBroker USERRA Morgan Keegan Arbitration Counterclaim Khuzami BrokeAndBroker Aleynikov Goldman Sachs brokeandbroker Promissory Note U4 Bill SInger EFL CFTC Huffington Post Flash Crash arbitration RBC Ponzi Affinity Fraud Wachovia Criminal Raymond James Expungement Fraud Securities Fraud Outside Business Activity Registered Rep Magazine FOREX FBI Banc of America Pro Se PCAOB Supreme Court Morgan Stanley Smith Barney E*Trade Margin email Galleon Penson U5 Defamation Protocol Wells Fargo Punitive Damages Citigroup Merrill Lynch ARS Employee Forgivable Loan Street Legal Morgan Stanley AWC Fidelity Bankruptcy Broke And Broker HFT David Sobel Day Trading Ameriprise Commissions Spouse Schwab Commission CRD Kenneth Starr IRS CNBC Complaint ATM Skimming Hacking Phishing Malware Naskovets Poteroba Koval Lincoln Financial Selling Away Outside Business Activities Rakoff 2nd Circuit Second Circuit IRA 401k Forgery Tax Email Netschi Moore Whistleblower Street Sweeper Countrywide Tran Bharara Facebook Online Severance Bonus Eligibility Rule TD Ameritrade Hedge Fund SAC 1099 Smith Barney Lehman Brothers SIPC IC3 Scottrade Lehman JPMorgan Chase Hertz Insider Trading Bank of America Department of Justice Elles Bribe Auction Rate Securities Raiding Spam Edward Jones Medicare Diabetes Dow Schumer Thain Walter Bid Rigging Real Estate Discrimination Wall Street Statutory Disqualification Form U4 Form U5 Indictment Boyland DOJ Corruption bill singer FTC Do Not Call FINRA Arbitration Costa Rica Settlement LIBOR Varney Plea Rule 8210 Eligibility RRBDlaw 8210 Appeal Fowler LPL Johnson Cellphone US Airways JPM BrokeandBroker Reg D MSSB Vault Loan SunTrust Discovery Employment Rosenthal Recruiting Lawyer Trading Platform JP Morgan Employment Tuesday Wrongful Termination Bank Guarantee WaMu Solicitation REIT Martin Credit Cards Rule 3050 Away Account Credit Repair PN Advisor Placement Group Fifth Amendment Forex Mortgage Private Placement Moon CGMI Failure to Supervise Merrill Anderson Exam Lee Borrowing Tax Lien Charity Conversion Oppenheimer Wedbush Felony Misdemeanor Expenses ING Lien OTR Estate Jobs Florida Credit Card Elderly Flash Drive Annuity Expense Reimbursement FNMA BrokeAndBroke TIC DWI Promissory Notes Suitability Will POA Power of Attorney Casino NSF MF Global Counterfeit Preet Bharara Corzine Hacker Deferred Compensation RIA Prison Disclosure NASAA Aguilar FCPA Subway Testimony Identity Theft Gold Dell Bar Injunction Bank Deutsche Bank Hospital Due Process God HSBC Private Placements Eric Stein Wire Fraud FINOP CCO Compliance Audit Joshua Brown Backstage Wall Street Obstruction of Justice Reuters Retaliation Variable Annuity Arbitraiton Outside Account Options Telephone Wine Series 7 Social Media ADA Pacifico Non-Prosecution Agreement Confirm Tax Fraud Retirement OBA Equity Indexed Annuities EIA Disability MetLife Continuing Education Cheating OIP Tax Liens Willful CE Unregistered Impersonation Annuities BBVA Business Expenses ETF JOBS Act Mail Fraud Parking Variable Annuities Signatures BitTorrent Impersonator Wire Transfer Wire Crowdfunding Nasdaq Away Accounts WSP Laptop Dodd Frank Checks RMBS AML PST Solicited Unsolicited Congress SRO Password Wife Discretion Non-Solicitation Restaurant Commodities Private Securities Transaction Offer of Settlement Money Market employment jobs Great Recession Chase Investment Services Arrest Barclays Liens Failure To Supervise Apple Time And Price T&P Willfully Husband Letter of Authorization LOA Sexism Debit Card Knight Test Practice Sale Unfair Competition Signature Judgments Undisclosed Settlement Trainee Fee Trust Laser Side Bar Mattera Female Sales Assistant Kennedy Charge Sexist NML Argentina Embezzlement Silver Investor Alert Evidence Judgment Bank Fraud Deceased Bill Singer BrokeAndBroker TSSB OHO Leveraged ETF Mary Jo White Trustee Motion To Dismiss Frumento Conspiracy 6th Circuit Proctor Commissioner Stein Rule 3040 Customer Files Class Action Beneficiary NYAG Schneiderman 11th Circuit Insurance Gallagher White Self Regulation Short Sale Compromise Website Rule 2010 Check TRO Supervision Vacatur Remand SDNY Rule 12206 BrokeAndBroker Bill Singer Piwowar Stifel Rule 1122 Article V signature Confidential Inside Information Reg SP VA Regulation SP Fees Cease And Desist Customer Examination Rule 3270 Rule 3240 Annual Compliance Questionnaire OWB 2Cir Red Flags Payroll Stockbrokers ALJ Cybercrime Loans BrokerCheck Altered Records
Email Bill Singer Connect with Bill Singer on Facebook Follow Bill Singer on Twitter Link up with Bill Singer on LinkedIn Join Bill Singer on Google+