NEW FINRA Cases Analyzed by Bill Singer at RRBDLAW.com

January 4, 2010

NEW FINRA Monthly Cases Analyzed by Bill Singer

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.

Judy Jo Patrick altered internal documents and public customers' Withholding Certificate for Pension or Annuity Payment Forms (IRS Form W-4P) by affixing invalid copies of the customers' signatures. Apparently, all that Patrick did was "altered" forms by "affixing invalid copies" of signatures. Altered? Affixing? Whatever happened to the old-fashioned "fraud" or "forgery"? When I think of "altering" something, it means that I take something that exists and shorten/lengthen it. For example, you alter a hemline.
Timothy Paul Hackett placed day trades in his personal brokerage account that he maintained at the firm, which resulted in a margin deficiency in that account. In an effort to satisfy the margin deficiency, Hackett accessed one of the firm's back-office systems and transferred approximately $6,129 from the firm's general ledger account into his personal account.  Ya gotta love them euphemisms: "accessed one of the firm's back-office systems and transferred approximately $6,129 from the firm's general ledger . . ." Thankfully, he didn't "steal" anything from anyone -- he just "accessed" and "transferred." 
Susan Jayne Nelson falsified account-related documents by whiting out information, taping over dollar amounts, writing dates and dollar amounts in pencil, tracing signatures, and cutting and pasting signatures. Here's an Old School riff.  White out,  tracing, and cut-and-paste. 
Lawrence Maxwell McCoy converted funds belonging to an elderly public customer totaling approximately $44,000 without her knowledge and consent by contacting the mutual fund company that held her funds and requesting numerous redemptions. McCoy converted additional funds belonging to the customer totaling $34,000, without her knowledge and consent, by forging her checks and making them payable to a company he controlled that was disclosed to his firm as an outside business activity.  Elder fraud is a growing area of misconduct and will likely garner more regulatory scrutiny in 2010.
ABOUT:  BrokeAndBroker.com and RRBDLaw.com lambaste the ineffective regulation of Wall Street and advocate for the rights of defrauded investors, independent/regional firms, and individual registered persons. Provocative commentary by veteran regulatory lawyer Bill Singer.

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