During the period from September 2012 through June 2014, Landers willfully failed to timely amend his Uniform Application for Securities Industry Registration or Transfer ("Form U4") to disclose four unsatisfied Internal Revenue Service ("IRS") tax liens totaling approximately $375,704 that were filed against him in September 2012, April 2013 and June 2 2013. By engaging in such misconduct, Landers willfully acted in contravention of Article V, Section 2(c) of FINRA's By-Laws and violated FINRA Rules 1122 and 2010.
Based on the foregoing, Respondent willfully omitted to state a material fact on a Form U4 in contravention of Article V, Section 2(c) of FINRA's By-Laws and in violation of FINRA Rules 1122 and 2010.
(39) A person is subject to a ''statutory disqualification'' with respect to membership or participation in, or association with a member of, a self-regulatory organization, if such person --. . .(F) has committed or omitted any act, or is subject to an order or finding, enumerated in subparagraph (D), (E), (H), or (G) of paragraph (4) of section 15(b) of this title, has been convicted of any offense specified in subparagraph (B) of such paragraph (4) or any other felony within ten years of the date of the filing of an application for membership or participation in, or to become associated with a member of, such self- regulatory organization, is enjoined from any action, conduct, or practice specified in subparagraph (C) of such paragraph (4), has willfully made or caused to be made in any application for membership or participation in, or to become associated with a member of, a self-regulatory organization, report required to be filed with a self-regulatory organization, or proceeding before a self-regulatory organization, any statement which was at the time, and in the light of the circumstances under which it was made, false or misleading with respect to any material fact, or has omitted to state in any such application, report, or proceeding any material fact which is required to be stated therein.
Definition of DisqualificationSec. 4. A person is subject to a "disqualification" with respect to membership, or association with a member, if such person is subject to any "statutory disqualification" as such term is defined in Section 3(a)(39) of the Act.
I understand that this settlement includes a finding that I willfully omitted to state a material facts on a Form , and that under Section 3(a)(39)(F) of the Securities Exchange Act of 1934 and Article III, Section 4 of FINRA's By-Laws, this these omissions make me subject to a statutory disqualification with respect to association with a member.
For willfully failing to timely update his Form U4, in violation of Article V, Section 2(c) of NASD's and FINRA's By-Laws, NASD IM-1000-1, NASD Rule 2110, and FINRA Rules 1122 and 2010, Respondent is suspended from associating with any FINRA member firm in any capacity for [INSERT TIME] and fined [INSERT AMOUNT]. Because his misconduct was willful, and the information he failed to disclose was material, he is subject to statutory disqualification.
No member or person associated with a member shall file with FINRA information with respect to membership or registration which is incomplete or inaccurate so as to be misleading, or which could in any way tend to mislead, or fail to correct such filing after notice thereof.
On September 30, 2016, FINRA issued an Order Accepting Offer of Settlement ("Order") in which he consented to a three-month all capacities suspension for willful violations of Article V, Section 2(c) of FINRA's By-Laws and FINRA Rules 1122 and 2010 for failing to timely amend his Form U4 to disclose tax liens. No fine was imposed based upon Landers' demonstrated inability to pay.
Landers was subject to a statutory disqualification as a result of the willful violations in the Order. In March 2018, Landers became associated with Frontier through a consulting agreement with the firm. On August 17, 2018, after Landers' Form U4 was filed at Frontier, FINRA's Registration and Disclosure Department notified Landers in writing that Landers was statutorily disqualified and he could not associate with the firm unless FINRA approved a Membership Continuance Application ("MC-400"). On September 6, 2018, Frontier submitted a MC-400 seeking approval of Landers' association with the firm. The MC-400 was not approved and was withdrawn by Frontier in May 2019. Nonetheless, during the Relevant Period, Landers associated with Frontier while statutorily disqualified by: conducting exams of Frontier branch offices; reviewing and approving Frontier registered representatives' outside business activities and private securities transactions requests; filing Forms U4 and US on behalf of Frontier for its registered representatives; reviewing requests from regulators and responding to regulators on behalf of Frontier, including requests from FINRA; and holding himself out to third parties as Frontier's Chief Compliance Officer.As a result of the foregoing, Landers willfully violated Article III, Section 3(b) of FINRA's By-Laws and FINRA Rule 2010.
Question 14K(1) of the Form U4 asks whether within the past 10 years "have you made a compromise with creditors, filed a bankruptcy petition or been the subject of an involuntary bankruptcy petition?" Landers answered no. However, on July 21, 2017, a Voluntary Petition for Individuals Filing for Bankruptcy was filed in the Southern District of Florida on behalf of Landers. Landers signed the bankruptcy petition and was aware of the bankruptcy petition at the time it was filed. Landers did not disclose the bankruptcy petition on his Form U4 until February 10, 2019 after FINRA staff inquired of Landers why he failed to disclose the bankruptcy. Accordingly, Landers willfully failed to timely disclose a reportable event, which was material information.As a result of the foregoing, Landers willfully violated FINRA's By-Laws Article V, Section 2(a) and FINRA Rules 1122 and 2010.
Respondent understands that this settlement includes a finding that he willfully omitted to state a material fact on a Form U4, and that under Section 3(a)(39)(F) of the Securities Exchange Act of 1934 and Article III, Section 4 of FINRA's By-Laws, this omission makes him subject to a statutory disqualification with respect to association with a member.