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

Sexist Double Standard? Female Sales Assistant Sanctioned By FINRA
Written: October 26, 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, Dawn Gwen Wiley submitted a Letter of Acceptance, Waiver and Consent (“AWC”), which FINRA accepted. In the Matter of Dawn Gwen Wiley, Respondent (AWC 2012030982001, October 22, 2012).

From 2000 until her termination on January 3, 2012, Wiley was associated with Wells Fargo Advisors, LLC and its predecessor Wachovia Securities LLC, where she held General Securities Representative (Series 7), Investment Advisor (Series 66), and Futures Managed Funds Representative (Series 31) registrations.  At the time of her termination, Wiley was working as a sales assistant for various financial advisors (“FAs”). The AWC asserts that Wiley had no prior relevant disciplinary history.

The AWC alleges that ten minutes before the market close on December 22, 2011, Wiley took a telephone call from an FA’s customer, who wanted to sell prior to the Close certain exchange traded funds (“ETF”) shares. Wiley executed the sell order but mistakenly entered the trade for another customer’s account.  Upon discovery of the error, Wiley filled out a trade correction form and signed the name of the customer’s FA, who was absent from the office.

On December 23, 2011, the FA asked Wiley to reduce the ETF trade’s commission.  The AWC alleges that in response to the FA’s request, Wiley prepared a second trade correction form, again signing the financial advisor’s name to the form.

According to the AWC, the Wells Fargo’s policies and procedures prohibit registered associates from signing or affixing the name of any other person to a document; and, as a result, Wiley was deemed to have violated FINRA Rule 2010.  In accordance with the terms of the AWC, FINRA imposed upon Wiley the sanction of a $5,000 fine and a 60-day suspension from association in any capacity with any FINRA member firm.

Bill Singer's Comment

Don’t like this case. No how. No way.

First, how nice — we have yet another woman with nearly 12 years of industry experience and three different registrations, and, gee, they got her working as a sales assistant.  Ya ever wonder, you know, just out of pure curiosity, what percentage of women are FAs and what percentage of women are sales assistants to FAs?

Second, okay, yeah, Wiley should not have signed the FAs signature on the trade correction.  Of course, for industry veterans, I doubt that it would likely come as a shock to learn that sales assistants sign their FAs signatures or initials . . . at times.  It’s one of those nudge, nudge, wink, wink things that often allow the wheels of Wall Street's brokerage offices and trading desks to move, even if the manual says that it’s not the proper lubricant for the purpose.

Third, a $5,000 fine AND a 60-day suspension for this garbage?  Oh for godsakes, really?

Gee, how nice to go to sleep tonight knowing that FINRA is oh so very attentive to the misconduct of the female sales assistants at the bottom of the biz’s ladder.  When, might I ask, should we expect the same diligence concerning the shenanigans of the boys in the offices?

Oh, and one last parting shot, just how many dollars did FINRA pay and how many days of suspension did FINRA serve when it submitted doctored records to the Securities and Exchange Commission?  As reported in “The SEC Slams FINRA for Submitting Doctored Record":

The SEC’s Order alleged that on August 7, 2008, the Director of FINRA’s Kansas City District Office caused the alteration of three records of staff meeting minutes just hours before producing them to the SEC’s Chicago Regional Office inspection staff.  The Director’s actions rendered the regulatory production inaccurate and incomplete.

. . .

Although one would not expect such gamesmanship between Wall Street regulators, the SEC’s Order shockingly states that:

The Director’s misconduct is the third instance during an eight year period in which a FINRA employee, or an employee of its predecessor, the National Association of Securities Dealers, Inc. (“NASD”), provided altered or misleading documents to the Commission. Although FINRA has endeavored to improve its procedures and training since document integrity issues came to light in May 2006 and December 2007, those efforts were not effective in preventing the Director’s misconduct.

The Order explains that the genesis of this misconduct began on July 28, 2008, when FINRA’s Kansas City District Office received an SEC document request relating to a previously announced inspection of FINRA’s Kansas City District Office.  The Kansas City office is responsible for conducting FINRA’s regulatory programs in seven states. Among the various items of information sought from FINRA by the SEC:

Item 36 of the document request letter asked for “Minutes of District staff meetings conducted between November 1, 2005 and the present.” On August 7, 2008—hours before furnishing the Commission inspection staff with FINRA’s response to Item 36—the Director caused the minutes for meetings that took place on August 28, 2006, September 22, 2006 and January 31, 2007 to be altered. Specifically, certain information was deleted or edited, while in other instances, entire passages were removed or changed. With respect to all three altered documents, the original author’s signature was changed to the Director’s. . .

Clearly, the misconduct of FINRA seems far worse than that of Wiley. How many bucks did FINRA get fined? Zero!  How many days was FINRA suspended? Zippo. What did the SEC do to FINRA?  The federal regulator imposed a Cease And Desist and agreed to accept various undertakings from the self regulator.

And somehow, on some planet, Wiley deserved a $5,000 fine and a 60-day suspension but FINRA gets off with barely a slap.

Also READ:


 
[^top^]

Previous Entries
April 18, 2014
We just made it through another tax season. The good news is that you filed and are fully paid up -- or, the bad news is that you didn't file or you h... Read On
April 17, 2014
In this digital age there are still folks who physically cut-and-paste. How quaint. Of course, quaint or not, when you start using the terms "cut-and-... Read On
April 16, 2014
Here's an interesting cocktail of facts: an IRA, a mother, powers of attorney, and a stockbroker son. Add into that mix questions about whether a $60,... Read On
April 15, 2014
Stockbroker, Compliance, Legal, and Regulatory JobsFor a full listing of current job openings, visit the BrokeAndBroker Employment Page ... Read On
April 14, 2014
Auction Rate Securities are the unwanted gift that keeps on giving. In today's BrokeAndBroker.com Blog, we report about yet another bit of collateral ... Read On
April 12, 2014
Citicorp Loses Bizarre Motion To Compel Class Action ArbitrationApril 11, 2014As part of the terms of his employment, former Citicorp Credit Services,... Read On
BrokeAndBroker.com Job Search
Related Topics
Tag Cloud
Internet FINRA Bear Stearns Bloomberg SEC NASD NYSE Money Laundering Due Diligence Waiver Forbes China Chepucavage Broy Woody Allen Madoff NAC NPR Marketplace Stanford UBS Ketchum Antitrust NASDAQ RRBDLAW Schapiro Bill Singer BrokerAndBroker USERRA Brokeandbroker.com Morgan Keegan Arbitration BrokeAndBroker.com Khuzami BrokeAndBroker Aleynikov Goldman Sachs brokeandbroker Promissory Note U4 Bill SInger EFL CFTC Huffington Post Flash Crash arbitration RBC RRBDLAW.com Ponzi Affinity Fraud Wachovia Raymond James BrokeandBroker.com Expungement Fraud Securities Fraud Outside Business Activity Registered Rep Magazine FOREX BrokerAndBroker.com FBI Banc of America Pro Se 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 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 RRBDlaw.com Email Netschi Moore Whistleblower Street Sweeper Tran Bharara Facebook Online Severance Bonus Eligibility Rule TD Ameritrade Hedge Fund SAC 1099 Smith Barney Lehman Brothers IC3 Scottrade Lehman JPMorgan Chase Hertz Insider Trading Bank of America Elles Bribe Auction Rate Securities Raiding Spam Edward Jones Medicare Diabetes Dow Schumer 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 RRBDlaw Appeal Fowler LPL Johnson US Airways 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 Away Account Credit Repair PN Advisor Placement Group Forex Mortgage Private Placement Moon Merrill Anderson Exam Lee Borrowing Tax Lien Conversion Oppenheimer Wedbush Felony Misdemeanor Expenses ING Lien OTR Estate Jobs Florida Credit Card Elderly Flash Drive Annuity FNMA BrokeAndBroke TIC DWI Promissory Notes Suitability Will POA Power of Attorney Casino NSF MF Global Counterfeit Preet Bharara Corzine Hacker Prison NASAA Aguilar FCPA Identity Theft Gold Dell Bar Injunction Bank Deutsche Bank God HSBC Private Placements Eric Stein Wire Fraud CCO Joshua Brown Backstage Wall Street Obstruction of Justice Retaliation Variable Annuity Outside Account Options Telephone Wine Social Media ADA Pacifico Non-Prosecution Agreement Confirm Tax Fraud Retirement OBA Equity Indexed Annuities EIA MetLife Continuing Education Impersonation Annuities BBVA Business Expenses OIP ETF JOBS Act Mail Fraud Parking Variable Annuities Signatures BitTorrent Wire Transfer Wire Crowdfunding Nasdaq Away Accounts WSP Laptop Dodd Frank Checks PST Solicited Unsolicited Congress SRO Wife Discretion Non-Solicitation Restaurant Commodities Private Securities Transaction Offer of Settlement employment jobs Great Recession Chase Investment Services Barclays Willful Apple Time And Price T&P Husband Letter of Authorization LOA Knight Test Practice Sale Unfair Competition Signature Judgments Undisclosed Settlement Trainee Fee Trust Laser Side Bar Mattera Female Sales Assistant Kennedy Argentina Judgment Bank Fraud TSSB Trustee Frumento 6th Circuit Proctor Beneficiary NYAG Schneiderman Gallagher White Compromise Website Supervision Piwowar Tax Liens signature VA
 
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+