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, Ryan P. Miller submitted a Letter of Acceptance, Waiver and Consent ("AWC"), which FINRA accepted. In the Matter of Ryan P. Miller, Respondent (AWC 2010024809201, November 1, 2012).
Miller entered the securities industry in 2003, and he was registered with Brecek & Young Advisors, Inc. from 2006 through January 23, 2009, at which time he was mass transferred to Securities America, Inc., where he remained until his October 21, 2010 discharge). The AWC asserts that Miller had no prior relevant disciplinary history.
During mid-December 2007 through mid-November 2010, Miller allegedly shared his securities commissions with an unregistered, statutorily disqualified individual - this individual had been barred by a state regulator from associating with any Utah broker-dealer or investment advisor. Miller purportedly transferred some $300,000 in commissions to this disqualified individual, in violation of NASD Conduct Rule 2420: Dealing with Non-Members , NASD Conduct Rule 2110 (for conduct before December 15,2008), and FINRA Rule 2010 (for conduct after December 14,2008).
In accordance with the terms of the AWC, FINRA imposed upon Miller a bar from association with any FINRA member in any capacity.
Among the oldest of regulatory temptations is the question of whether to work with someone who was bounced from the biz but still has the ability to send you customers or place deals. Frankly, from my earliest days as a securities industry regulator, these were among the first and most common matters to come across my desk. Although in many instances the explanation was "I didn't know and he didn't tell me that he had been barred," just as many explanations were "You got me - what's it gonna cost?"
What is often lost in these cases is the sanction: frequently, a Bar - as in an industry death sentence.
Sure, times are tough on the Street. Talk to enough brokers at the big boys: Merrill, JP Morgan, Morgan Stanley, Wells Fargo, and you hear the difficulties of finding new clients. Talk to some of the indies/regionals and you hear the same lament - just as hard at LPL. Nonetheless, there are short-cuts and there are short-cuts. Some save time and are legit. Others are a dangerous detour over the cliff, a crash and burn. This FINRA case warns of the latter.