OVERVIEWFrom at least November 2015 through September 2016, Bushey violated FINRA Rules 2150(a) and 2010 by converting approximately $10,900 in funds from the account of a Firm customer. Bushey converted the funds by writing checks to "cash," depositing those checks into his personal bank account, and subsequently using those funds for his personal use.FACTS AND VIOLATIVE CONDUCTFINRA Rule 2150(a) provides that "[n]o member or person associated with a member shall make improper use of a customer's securities or funds." FINRA Rule 2010 requires associated persons to "observe high standards of commercial honor and just and equitable principles of trade." Conversion is an intentional and unauthorized taking of and/or exercise of ownership over property by one who neither owns the property nor is entitled to possession it, and violates FINRA Rule 2010.In 2007, Bushey assisted MB and her now-deceased father with creating a trust for the benefit of MB's two minor children (the ''Trust"). MB and a third-party with whom Bushey had a business-relationship were appointed as co-trustees. Bushey then assisted the Trust with opening an account at NYLife, for which he served as the registered representative of record.From November 2015 through September 2016, Bushey wrote at least seven checks from the trust's account, made out to "cash," for a total of $10,900. Bushey then deposited those checks into his personal bank account and used the funds for his personal use. Neither trustee authorized Bushey's actions. Through these actions, Bushey converted and improperly used the Trust's funds, which he neither owned nor was entitled to possess.By converting and improperly using the Trust's funds for his personal use, Bushey violated FINRA Rules 2150(a) and 2010.
[O]n October 25, 2016, NYLife filed a Uniform Termination Notice of Securities Industry Regulation ("Form U5") on Bushey's behalf disclosing that Bushey voluntarily terminated his employment on September 30, 2016, and that he was the subject of a customer complaint received by NYLife on October 11, 2016.
FINRA SanctionsOn September 30, 2016, Bushey registered as a GSR with another FINRA regulated broker-dealer, which on November 2, 2016, filed a Form U5 on Bushey's behalf disclosing that Bushey's employment with the firm had been terminated because Bushey withheld information regarding a customer complaint from his previous firm.
In 2007, Bushey assisted MB and her now-deceased father with creating a trust for the benefit of MB's two minor children (the ''Trust"). MB and a third-party with whom Bushey had a business-relationship were appointed as co-trustees. Bushey then assisted the Trust with opening an account at NYLife, for which he served as the registered representative of record.
SIDE BAR: Why does the AWC characterize the female/mother/daughter referenced in the document as "MB" but only refers to another individual with whom Bushey had a business relationship as a mere "third party?" If for no other reason than consistency, why doesn't the AWC refer to "MB" and, let's say that the third party was "John Doe" and also refer to him as "JD" ?In the alternative, why not simply refer to MB as the "mother of the two minor children beneficiaries of the Trust" and the unnamed third party as "the third party"?
Customer alleges between January 2016 and September 2016 checks in the total amount of between $15,000 and $18,000 were written out of her brokerage account without her permission by RR Marc Bushey.