Maybe they gotta rethink the whole idea about having one person working at both a brokerage firm and its banking affiliate. If you go by some recent cases, it seems like having all that cash around is just too much a temptation for some folks.
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, Steven Bruce Grunwerg submitted a Letter of Acceptance, Waiver and Consent ("AWC"), which FINRA accepted. In the Matter of Steven Bruce Grunwerg, Respondent (AWC 2012032630801, June 5, 2013).
Grunwerg entered the securities industry in 1995; and in 2000 he became associated with FINRA member firm Wells Fargo Advisors, LLC, where he was also employed by the firm's banking affiliate Wells Fargo Bank as a Financial Specialist. The AWC asserts that Grunwerg had no previous disciplinary history.
A Balancing Act
The AWC alleges that around March 10, 2010, Grunwerg executed a $30,000 promissory note with a Wells Fargo Advisors' customer. The Note acknowledged that $50,000 of a pre-existing $80,000 had been paid. Upon learning of the Note, on April 23, 2012, Wells Fargo Advisors' permitted Grunwerg to resign.
On the same day of his permitted resignation, Grunweg told a Wells Fargo Bank customer that he had removed $65,000 from her safe deposit box.
Adding It All Up
The AWC charged Grunweg with violating:
FINRA Rule 2010 for taking funds from the bank customer; and
NASD Rule 2370 and FINRA Rule 2010 for borrowing money from a brokerage customer.
In accordance with the terms of the AWC, FINRA imposed upon Grunwerg a Bar from association with any member of FINRA in any capacity.