May 13, 2013
With troubling frequency, BrokeAndBroker.com has been reporting about regulatory problems bedeviling securities firms with bank affiliates -- particularly when it comes to dual-affiliated individuals. In this recent FINRA regulatory matter involving a broker-dealer/bank employee, bank customers were targeted for the purpose of accessing their signature cards.
The Top Ten
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, Henry Nguyen submitted a Letter of Acceptance, Waiver and Consent ("AWC"), which FINRA accepted. In the Matter of Henry Nguyen, Respondent (AWC Timothy R. Ward 20130360540-01, May 3, 2013).
Nguyen entered the securities industry in 2010 with U.S. Bancorp Investments, Inc., where he remained until February 2011; thereafter, he was with Chase Investment Services Corp from March 2011 until October 2012; and then with J.P. Morgan Securities LLC ("JP Morgan Securities") from October 2012. While associated with J.P. Morgan Securities LLC, Nguyen was also affiliated with J.P. Morgan Chase Bank N.A. ("Chase Bank"). The AWC asserts that Nguyen had no prior formal disciplinary history.
Between December 18, 2012, and January 22, 2013, Nguyen used Chase Bank resources to locate customer information for customers who were between 25 and 40 years of age and who maintained at least $25,000 in their bank accounts. After harvesting the desired data, Nguyen then used Chase Bank account numbers to access the victims' customer signature cards. Nguyen forwarded this information to an unidentified individual and, in exchange, expected to receive a payment for each set of customer information he provided. As a result of Nguyen's conduct, unauthorized withdrawals occurred in ten Chase Bank customer accounts.
The Old Heave-Ho
On February 22, 2013, the JP Morgan Securities filed a Uniform Termination Notice for Securities Industry Registration (the "Form U-5") reporting that on January 23, 2013 Nguyen was "terminated by affiliate bank
Allegations: TERMINATED BY AFFILIATE BANK - NON SECURITIES RELATED. REGISTERED REP ADMITTED TO PROVIDING BANK CUSTOMERS PROFILES TO AN UN-AUTHORIZED THIRD PARTY WHICH RESULTED IN FRAUDULENT TRANSACTIONS IN THE BANK CUSTOMERS ACCOUNTS.
Nguyen was deemed to have violated FINRA Rule 2010; and in accordance with the terms of the AWC, FINRA imposed upon Nguyen a Bar.