September 2, 2009
Veteran regulatory lawyer
Bill Singer's analysis of recent FINRA cases is now online at http://RRBDLAW.com.
Make sure to click on the links to read Bill's commentary about
these matters and more.
Erik Stephens permitted a trainee to complete
portions of the required continuing education online
courses for his Certified Financial Planner (CFP)
designation on his behalf.
- In an scheme to hold onto his
title of "financial planner," John Kenneth
Scheidler had firm representatives
assist him in submitting a plan ostensibly for each of them, for which
they each agreed to pay $300, to be repaid by Scheidler. Scheidler completed the plan paperwork for each
representative, submitted the completed plans and received a total of $400
from his firm for submitting the plans.
reports indicate that FINRA has designs on becoming a larger
self-regulatory organization -- perhaps into investment
advisory and financial planning jurisdictions? Is this
the opening salvo against the Financial Planning Coalition's
effort to create its own SRO? Are the dogs beginning
to mark their turf?
Shawn Steven Keller stole computer monitors
and a telephone worth $4,400 from his member firm and pawned them
for cash. Keller failed to respond to FINRA requests for
think times are tough? Looks like even brokerage firms
need to start bolting down their equipment. Of course,
that's not going to be much comfort to already wary
before resigning from her firm to begin working at another
member firm, Donna
Rae Jordan deleted certain customer telephone numbers
and made inaccurate updates to other customer telephone
numbers to slow down other registered representatives at the
firm who Jordan believed would be assigned to call her
customers after she resigned.
outsiders often have little idea about the dog-eat-dog
atmosphere at many branch office around the country.
Here is yet another example of the fun and games that
individual stockbrokers play in order to protect their
client lists from poaching (or, as the Broker Dealer would
argue, to wrongfully interfere with their employer's access
to such data). Either way, this is a long festering
wound that needs to be addressed.
Sylvenia Frick was provided with a money order by a
customer in order to open an account at her member firm on
behalf of the customer's children. Unfortunately, Frick
misplaced the money order and decided to deposit $1,100 of
her own personal funds into an account at her firm for the
benefit of the customer's children without notifying the
customer or the firm.
is an old line that the road to Hell is paved with good
intentions (and the corollary that no good deed goes
unpunished). See how Frick's decison to take dollars
out of her own pocket resulted in a fine and suspension.
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