An irreverent Wall Street Blog
by Bill Singer

Father's Stroke Entangles Stockbroker In Short Sale And Credit Card Debt

January 15, 2014

Most of us like things clear-cut -- straight and simple with no curves or gray areas. Life, however, is rarely anything like that. In today's BrokeAndBroker Blog we are left to wrestle with another messy life and its impact upon compliance and regulatory considerations. 

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, Jesse Chandler Skirvin submitted a Letter of Acceptance, Waiver and Consent ("AWC"), which FINRA accepted. In the Matter of Jesse Chandler Skirvin, Respondent (AWC 2013036557501, January 6, 2014).

Skirvin was first registered in 2006, and from 2009 through December 3, 2013, he was registered with LPL Financial LLC. The AWC asserts that Skirvin had no prior relevant formal disciplinary history with the Securities and Exchange Commission, any self-regulatory organization or any state securities regulator.

Trying To Work It All Out

On February 19, 2010, the AWC asserts that Skirvin entered into a "compromise" with the bank holding a second mortgage on his primary residence. In furtherance of that compromise, the bank agreed to a waiver of repayment of the remaining $111,000 debt beyond $12,047.12 derived from a short sale of the property. 

Also, the AWC asserts that on January 7, 2011, Skirvin entered into another compromise with a creditor through his settlement of $3,176 in credit card debt by paying $1,905.60.

SIDE BAR: The Uniform Application For Securities Industry Registration Or Transfer ("Form U4") includes the following Items:

Financial Disclosure 

14K. Within the past 10 years:

(1) have you made a compromise with creditors, filed a bankruptcy petition or been the subject of an involuntary bankruptcy petition? 

(2) based upon events that occurred while you exercised control over it, has an organization made a compromise with creditors, filed a bankruptcy petition or been the subject of an involuntary bankruptcy petition? 

(3) based upon events that occurred while you exercised control over it, has a broker or dealer been the subject of an involuntary bankruptcy petition, or had a trustee appointed, or had a direct payment procedure initiated under the Securities Investor Protection Act?

14L. Has a bonding company ever denied, paid out on, or revoked a bond for you? 

14M. Do you have any unsatisfied judgments or liens against you?

Not Getting To "YES"

The AWC alleges that it was not until April 1, 2013, when Skirvin  amended his Form U4 to disclose the two mortgage and credit card debt compromises. Moreover, in completing LPL's Branch Manager & Financial Advisor Questionnaire ("Questionnaire") in 2011 and 2012, the AWC alleges that Skirvin falsely certified that he had not entered into a settlement or compromise with a creditor during the prior two years. 

Paying The Price

On December 2, 2013, LPL filed a Uniform Termination Notice for Securities Industry Registration (‘Form U5") stating that Skirvin had voluntarily resigned on December 1,2013. 

FINRA asserted that Skirvin's failure to timely disclose the two compromises with creditors on his Form U4 violated Article 5, Section 2(c) of FINRA's By-Laws and FINRA Rules 1122 and 2010. In accordance with the terms of the AWC, FINRA imposed upon Skirvin a $5,000 fine and a 30-business-day suspension from association with any FINRA member in any and all capacities.

Bill Singer's Comment

Given the facts as set forth in the AWC, the sanctions in this case seem relatively balanced and fair; however, before you are too quick to jump to conclusions or make inappropriate inferences, note that online FINRA documents as of January 15, 2014, disclose that the $3,176 credit card debt was

CREDIT CARD DEBT THAT LAPSED AFTER ASSUMING COSTS RELATED TO REGISTERED REPRESENTATIVE FATHER WHO HAD A STROKE AND REGISTERED REPRESENTATIVE ASSUMED FINANCIAL RESPONSIBILITIES

Moreover, as to the $111,000 mortgage, online FINRA records disclose that:

THIS IS A SECOND MORTGAGE ON REGISTERED REPRESENTATIVE'S PRIMARY RESIDENCE AFTER HIS FATHER'S STROKE, MEDICAL BILLS AND RELATED COSTS WERE ASSUMED BY REGISTERED REPRESENTATIVE FOR HIS FATHER. A SHORT SALE OF THE PROPERTY WAS THE ONLY VIABLE SOLUTION TO STOPPING THE RISK ON THIS PROPERTY.

READ: Real Estate Short Sale Short Circuits Stockbroker (BrokeAndBroker.com, June 19, 2013)

ALSO READ:

Permalink

Search BrokeAndBroker

Related Topics

Previous Entries

Tag Cloud

Bill Singer BrokeAndBroker FINRA Arbitration AWC SEC Expungement BrokeAndBroker.com BrokerAndBroker Guest Blog Employment Guest Blogger Wells Fargo Street Sweeper Bill SInger Aegis Frumento Jobs OBA U5 Fraud Promissory Note U4 Email Merrill Lynch Morgan Stanley UBS Defamation EFL CRD BrokeAndBroker Wire Fraud Elderly InSecurities Statutory Disqualification OHO Whistleblower NAC Suitability PST FBI Forbes DOJ Ponzi Rule 3270 ALJ Supervision Citigroup BrokerCheck Borrowing Form U4 IRS SDNY Expenses OIP Pro Se Willful Supreme Court Outside Business Activity Rule 8210 Felony Bank Securities Industry Commentator Ameriprise Rule 2010 Dodd Frank WSP Rule 2080 Discretion Wrongful Termination Form U5 Discovery IRA Wachovia RIA Business Expenses Raymond James JP Morgan Insider Trading Punitive Damages Bar Mail Fraud Conversion Wife NASD Bankruptcy CCO TRO Rule 1122 Husband Edward Jones Margin Forgery Stephen Kohn Willfulness Rule 3240 Checks arbitration Settlement Estate Tax Schwab LPL 2Cir Commissions Trump Credit Card Employment Tuesday Wall Street Outside Business Activities NYSE Small Firm Promissory Notes Beneficiary Madoff Frumento FAA Insurance Rule 3040 CFTC Options Corrective Action Statement Private Securities Transaction Annuities Injunction Bank of America Tax Liens Antitrust Impersonation Facebook Rule 3280 Real Estate Goldman Sachs Rule 12206 Power of Attorney Customer Indictment Crypto Due Diligence Exam TD Ameritrade OWB Trust ETF Remand Tax Lien Stay SRO ATM Retaliation Street Legal Misdemeanor Offer of Settlement Test Spouse Mortgage Signature Barclays OTR Discrimination Trustee Explained Decision Securities Fraud Complaint Annuity Away Account Eligibility Rule COVID Solicitation ACQ Case In Point Wire Schapiro Rule 2510 Loan Motion to Dismiss POA NASDAQ Sanctions email VA Jurisdiction Initial Decision ARS Reg SP DCCir Unauthorized Discretion Rule 4511 Blockchain Lien Spouses Appeal Conspiracy Rule 4530 CRS Mandatory Arbitration E*Trade Employee Forgivable Loan NSF Class Action Motion to Vacate T&P 9Cir HFT JPMorgan Burris Liens Money Laundering Rule 12200 Fidelity PCAOB NASAA Reimbursement Unsuitability Retirement Deutsche Bank Compliance Great Recession AML Unfair Competition Failure to Supervise Signatures RBC Cease And Desist Personal Expenses Bonus Flash Crash Willfully Rule 3010 Continuing Education FINRA Board REIT expungement Divorce Manifest Disregard Sexism Fiduciary Dissent LOA Sexist Disgorgement Broker Protocol Chase Scottrade Severance Huffington Post Credit Cards 10Cir Customer Complaint Hacking MSSB Due Process Vacatur Undisclosed Settlement Cryptocurrency Hacker Rule 3050 Internet Lehman Brothers Identity Theft Unauthorized Trading MC-400 Malware Spoofing Board Bharara Social Media Gallagher SDFL RRBDLAW.com BD Bitcoin Disclosure Will brokeandbroker Deceased Registered Rep Magazine IAR Indemnification Rule 3110 Variable Annuity Fees Audit Coronavirus Examination Private Placement employment Wey Stockbrokers Away Accounts Self Regulation Kokesh Rule 12904 Apple Lucia Rule 9552 Forex Wedbush Statute of Limitations Loans Solicited Letter of Authorization Trading Platform LIBOR Website Elder Abuse Widow Stifel 4Cir Annual Compliance Questionnaire Emails Variable Annuities Commission FINRA Arbitration Zipper Gensler PNC Bonds PIABA Rule 2150 jobs 3Cir Prison WSPs Crowdfunding Postponement Brummer Charles Schwab Confidential Information Lehman Arbitraiton Hedge Fund Second Circuit 2nd Circuit FINOP Public Interest Exhaustion of Administrative Remedies Private Securities Transactions BOP Rule 12805 Rule 2111 Dakota Securities Net Capital BrokeAndBroker Bill Singer Breach of Contract Waiver Credit Suisse RMBS Registration OIG Unsolicited 9/11 Sanction Guidelines Newman guest blog MetLife Mother CE guest blogger bill singer Debit Card Board of Governors RRBDlaw.com SunTrust Racism Telephone Time And Price Rule 13200 Marijuana aegis frumento Judgments Series 7 TOD Motion to Confirm insecurities Robinhood Cheating Morgan Keegan China RR JPM Plea Diversity BrokeAndBroker.com Blog IC3 ADA Hilton Weiner BrokeandBroker Bureau of Prisons Non-Solicitation NYAG Suspension CMA Whistleblowing FOREX Unjust Enrichment IPO Unsuitable Bear Stearns Margin Call Imposter Concentration Enforcement Sexual Harassment Obstruction of Justice DOL Oppenheimer Reg S-P CPA Rule 2081 Protocol EDNY Raiding WB-APP Rationale Testimony Non Solicitation Knight OSHA Botkin Lawyer Membership Continuance JOBS Act Confirm Whistleblowers Rakoff Covid Auction Rate Securities TCR Private Placements Statutory Disqualification Committee Embezzlement Restitution FNMA Tortious Interference Check Kiting Rule 4513 Churning Charge CNBC Leggett Small Firm Governor Employment Agreement Piwowar Absolute Immunity Mutual Funds Puts 11Cir 1Cir Broke And Broker Elder Fraud Stifel Nicolaus Puerto Rico Restaurant Compensation Rule 2210 Gold Regulation SP Joshua Brown NoCA Finra NDCA Counterclaim Bandimere SAC Confidential MF Global Customer Information Appointments Clause TSSB Lawyers Deferred Compensation Federal Reserve Cannabis Trade Secrets VIX CEO Securities America EIA securities industry commentator Preliminary Injunction Saad Rule 13805 Affinity Fraud Pennystock Circuit Court Robert Cook Conflict Shah Gilani Reg D Bank Fraud Affiliate Biden Irreparable Harm AAA Customers ING Hurry Article V Written Supervisory Procedures Johnny Burris Banc of America Form ADV Research Aleynikov Bloomberg Termination Sarbanes Oxley Woody Allen Rule 12504 Leveraged ETF Funds 10b-5 PN Stanford Check Testing USERRA Rosenthal Recruiting Khuzami Test Center Wine Wire Transfer Ketchum Standing HSBC Charity Corruption money laundering Taxes Excessive Trading Unregistered TheBlot Pennystocks Phishing Executor Feigenbaum Michael King Immunity fraud Information DNJ Service Confidentiality Sales Assistant Michael King Associates Inability to Pay supervision Dementia Morgan Stanely Day Trading Medicare Passcode High Frequency Trading 10b-10 Laptop NRF Hearing signature Rule 2430 Star Wars Rule 12212 Superior Court Hester Peirce Bid Rigging Probate Stipulated Award Medical Condition 6Cir BrokeAndBroke Chief Compliance Officer CGMI Congress FMLA Extraordinary Circumstances Chase Investment Services Obstruction Conflict of Interest Rule 9554 Rule 21F Eligibility Parking OCIE Vault Rule 3310 Moon Rule 3030 Failure To Supervise Disability Kon Ethereum Beneficiaries Casino Constitution Self Regulatory Organization PAQ Lincoln Financial Over Concentration AXA 6th Circuit Morgan Stanley Smith Barney Amazon Sharemaster Commodities Fraud Sexual Discrimination DMD Google Spoliation Third Party Vendor Talman Harris Self Directed Accounting Subpoena Cantor Fitzgerald FINRA AWC White Nietzsche Argentina RICO FINRA Small Firm Finder\'s Fee Attorneys Fees Aguilar 401k State Actor ACH Penson Wanger Statement of Corrective Action Administrative Remedies Pruco Side Bar Layering Online Whitman Motion to Compel Outside Account ICO Guitron Honorarium Smith Barney Poteroba Negligence Death McDuff Vietnam Ride the Thunder Mutual Fund Consent Order Marines Joint Account Teleconference Marine Corps Relevant Disciplinary History David Sobel Government Accountability Project Corzine NPR Marketplace Unauthorized Practice of Law Default 5Cir Trader CDO JPMS Yesenia Guitron Privilege Hugh Hewitt IM Fine S&P Offset Copyright Investor Alert ESOP Rule 13504 Stop Loss Florida Money Market BrokeAndbroker GameStop FAP Cold Spring Advisory Group Female Withdrawals SIFMA Do Not Call mail fraud Crime Respondeat Superior LLC Racial Discrimination Falsification FOCUS Rule 2370 Res Judicata Scottsdale Blackbook Risk Commodities Revocation Hospital Stockbroker Investment Adviser Chase Bank Timban Pension EEOC Settling Away Backstage Wall Street Disciplinary History Hotel Newport Coast Securities Obama Chiasson Series 79 11th Circuit Regulation Rory Flynn Extraordinary Cooperation YouTube Conflicts Regulation S-P Peirce NY Life Microcap WBAPP WaMu Fifth Amendment Resignation Reuters Book of Business Outside Accounts Schneiderman Transamerica Elder Law Capital Gains SP Password BrokerAndBroker.com 40 Act Fowler Guest Bloggers OWWP elderly Client Information First Amendment Reform Rule 1031 Libel RRBDlaw UIT Johnson Gamification Financial Professionals Coalition Expert Witness Trading Mistake Attorneys\' Fees Subject Matter Jurisdiction Red Flags Motion Blank Forms Penalty Fiduciary Duty Life Insurance Judgment Jennifer Tarr Reverse Life Insurance Turnover Data wire fraud Title VII Christian Stanley Liquidation BATS Zoom Tesla Moore 401(k) Permanent Bar Netschi Thain Puerto Rico Bonds Daughter Selling Away David Lerner TIC For Cause Dell Taft Correctional Institution Electronic Communications wrongful termination Arbitration EDPA Relevant Tax Fraud CD FCI Acosta Department of Justice Oral Discretion Verbal Discretion Extortion Inmate Equity Indexed Annuities NYG Capital Escrow Kiting Texting Self Reporting Counterfeit Confirmation Interactive Brokers Inside Information Non Solicit Ethics Commissioner Stein Wires FCI Beaumont Meals Civil Rights Slander SD Elles Fee VXX Prudential Fines FCPA Outside Counsel Chevron Rule 9216 Gross 17a-5 Harassment Control Person Scholander WhatsApp Annual Audit Son Arrest securities fraud Stock Promotion Initials Short Sale Compromise EB-5 Dinner Alcoholism Motiion to Acquit Rule 12511 TradeStation Corporate Credit Card Game of Thrones National Securities GME Third Party Beneficiary Led Zeppelin Tippee Beatles Jay Clayton Covid-19 Tipper Merrill Altered Records Promoter Wire Transfers Berthel Fisher finra Texas State Securities Board Merill Lynch Executrix Training Impersonator Jury Instructions Women Burden of Proof Molchatsky Credit Repair Retired Woman With Cane Transfer Summary Judgment Tennis Court Coin Public Arbitrator NFT Kovack Securities SDCA Cybersecurity Checking Jon Corzine Vaccarelli Motion to Exclude Motion to Postpone Flash Drive Howey Discharge Bequest Preet Bharara Rule 13904 Hayden Reg SHO Pershing Section 206 Vungarala Purshe Kaplan Lewis Carroll Constructive Discharge bank Communications Advisor Placement Group Nationwide Expense FINRA Eligibility Rule Production At Will Rule 13212 Hackers Age Discrimination Subway South Park Compliance Questionnaire Rule 21F-17 Kent Exhaustion Doctrine Undertaking ADEA Exception Report Books and Records FDA Motion to Compel Arbitration Khan Wells Fargo Advisors Oilpro No Show Sears Gnomes Altered JAMS Allocation Back Dated false statements NYLIFE Exemption Liu Cherry Picking Fraudulent Inducement DCO Eric Stein Rule 3210 Tysk Income Branch Manager DWI Cybercrime annuities AI Lek Frivolous Schottenstein ACT! Binary Options Section 1332 Non-Solicit Exception Reports Lee Orders Voya Fiero Newbridge Anderson NPI Vacate BitTorrent Rule 13201 Currency whistleblower Prime Bank Daspin Clayton Sharing Agreement BBVA ESG Supervisor Disparate Treatment Pacifico iPhone Theft Non-Prosecution Agreement Powell Guardian Expert God Punitive Rule 1210 SDOH reimbursement Wang DRS 1099 Bank Secrecy Act Gabelli FinCEN Martin In Connection With SLUSA Traders EDVA Collateral Bar SIPC Municipal Advisor NRSRO Investacorp Undercover FNI Media Retroactive Retroactive Bar Baby Boomers Mantar Arbitrator College Trainee Fee Hostile Workplace Laser Koval Skimming In House Counsel Naskovets Fourth Amendment GAP Countrywide Tran Last Known Address ADR Bob Dylan Allstate Examinations Law School Bartko Patriot Act Overtime Espionage Schumer Walter Dow Preliminary Determination Wages Salman Diabetes Form TCR Confidential Customer Information CAT HBO Grievance Ecuador Springsteen Mail defamation McCartney Spam Elon Musk Proctor JP Morgan Securities Books And Records AMC Rule 2330 ALJ Foelak AIG Hertz Clearing Firm Success Fee Series 66 MAP Court of Appeal QuadrigaCX Willfull Fidelity Brokerage Services Practice Sale Bribe William Faulkner Mattera Collateral BIll Singer DAO Stephen A. Kohn Principal PSRO Ten Commandments Brokeandbroker.com ETFs Municipal Bonds Father IBM Janney Montgomery Scott JPMorgan Chase Malice Martoma BrokeandBroker.com Disney Criminal Mary Schapiro Particularity NFA Merger AWC. FINRA Broy Compliance Officer PHC Rule 144 Lorenzo Private Actor Mary Jo White House Financial Services Capitalism State Farm RRBDLAW Apartment Rule 420 Bill Singer BrokeAndBroker SIE Tax Advice Exotic ETF Quasi Governmental Motion To Dismiss Press Release Cryptocurrencies 529 Plan Margin Calls Arbitrability Excel Bezos Statute of Limitation Ineligibility Kennedy Securities and Exchange Commission Murray Kenneth Starr Romer Leveraged ETFs Harris Work Product Dissident Deceased Customer Deferred Prosecution Agreement DPA Dylan Legend Silver Banks Evidence SEC Rules of Practice Witness Tampering ALJ Grimes Solomon Galleon NML Calls 9th Circuit Financial Disclosure Swaps Non Compete Diamonds Sex Sterne Agee Life Settlement Dostoevsky Unauthorized Trades Guardianship Payroll Shotgun Pleading Ronald Filler Lexicon Office of Special Counsel 8210 Investment Advisers Act Panama Fundacion Nicor Nicolas Corcione Stipulation sexism Personal Information expenses Forfeiture Well Managed Portfolio Costa Rica CMO NMS Travel Varney DDC Rule 13206 Hurtado Cellphone Hearsay Turbeville MSPB Fernandez Gifts Rules of Practice Notice Reason for Termination Bank Guarantee Customer Files Nasdaq Kierkegaard MBS Address Goble Transitional Bonus Citibank Twitter US Airways Production Bonus Rule 13104 FINRA Foundation Scam Reverse Merger Rule 12104 Joint Production Bill singer Reasonable FTC Boyland Justice Ruder Task Force Obamacare MDLA Audit Committee DMCA