December 1, 2014
Lately, the headlines have been filled with stories about demonstrations and strikes over what constitutes a minimum or living wage. On Wall Street, in contrast, there have long been stories about jaw-dropping bonuses and salaries. What happens when one enterprising registered representative conflates the two issues?
Case In Point
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, David Johnson Whiting submitted a Letter of Acceptance, Waiver and Consent ("AWC"), which FINRA accepted. In the Matter of David Johnson Whiting, Respondent (AWC #2014041060501, November 17, 2014).
Whiting first became registered in December 2013 with FINRA member firm Metlife Securities Inc., where he remained until his April 8, 2014 termination. The AWC asserts that he had no prior formal disciplinary history.
The AWC asserts that on December 16, 2013, Whiting prepared a payroll form for submission to Metlife on which he had forged the name of a more senior employee and entered information that increased his hourly payroll rate.
On March 13, 2014, the AWC alleges that Whiting submitted a second forged payroll form, on which he had again forged a senior employee's signature and increased his hourly rate.
According to online FINRA BrokerCheck reports as of December 1, 2014, MetLife "Discharged" Whiting on April 8, 2014, based upon allegations:
REGISTERED REPRESENTATIVE WAS TERMINATED AFTER ALLEGEDLY SIGNING HIS EMPLOYING REPRESENTATIVE'S NAME TO A FORM
Thereafter, Whiting was registered with FINRA member firm Snowden Account Services, which "Discharged" him on October 6, 2014, based upon allegations:
REGISTERED REPRESENTATIVE WAS TERMINATED AFTER FAILING TO DISCLOSE ALLEGED TERMINATION CIRCUMSTANCES AT PRIOR FIRM.
FINRA Adds It Up
As a result of the two forged payroll forms, FINRA asserts that Whiting's fraud resulted in his being paid over $800 more than he was entitled. FINRA deemed Whiting's conduct to constitute an $800 conversion in violation of FINRA Conduct Rule 2010. In accordance with the terms of the AWC, FINRA imposed upon Whiting a Bar in all capacities with any FINRA member firm.