What we got for you today on the old BrokeAndBroker.com Blog is a dose of double trouble. Two FINRA regulatory settlements. Two . . . count 'em. Double trouble resulting in one guy getting fined and suspended and the other guy getting barred. The first bit of trouble involves a registered rep and college planning services. The second bit of trouble involves a registered rep and nine fictitious auto insurance policies. All of which reminds us of those woeful lyrics from Otis Rush's "Double Trouble."
Case In Point
Bad luck and trouble taking me
I have no money to show
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, James Jurczak submitted a Letter of Acceptance, Waiver and Consent ("AWC"), which FINRA accepted. In the Matter of James Jurczak, Respondent(AWC 2015047278601, July 19, 2016).
In 1990, Jurczak first became registered and by September 2009, he was registered with FINRA member firm LPL Financial LLC. The AWC asserts that Jurczak had no prior relevant formal disciplinary history with the Securities and Exchange Commission, any self-regulatory organization or any state securities regulator.
College Planning Services
The AWC alleges that:
From in or about November 2013 through 2015, while registered with FINRA through an association with LPL, Jurczak engaged in an undisclosed outside business activity. Specifically, Jurczak provided college planning consulting services to customers for a fee; among other services, Jurczak assisted individuals with the college financial aid application process. This outside business activity was outside the scope of Jurczak's employment relationship with LPL. Jurczak engaged in this outside business activity without providing the Firm with prior written notice.
Online FINRA BrokerCheck records as of August 4, 2016, disclose that LPL "discharged" Jurczak on October 1, 2015, based upon there allegations:
Participation in undisclosed business activities., in violation of firm policy, and concerns regarding undisclosed tax liens.
Although not an issue in this AWC, Jurczaks' BrokerCheck file further disclosed under the headings noted below:
"Financial - Final": a "compromise" with creditor HSBC on May 31, 2010, and that the terms reached were to settle for $4,900 versus an original amount owed of $13,665;
"Judgment/Lien": a Tax Lien of $7,415.63 dated June 29, 2015, and owed to the Town of Manchester. A Civil Judgment of $837 dated November 20, 2010, owed to Fabian Oil.
In accordance with the terms of the AWC, FINRA imposed upon Jurczak a $5,000 fine and a 30-calendar-day suspension from association with any FINRA member in any and all capacities.
Another Case In Point:
It's hard to keep a job,
Laid off and I'm having double trouble
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, Frank S. Boscarino submitted a Letter of Acceptance, Waiver and Consent ("AWC"), which FINRA accepted. In the Matter of Frank S. Boscarino, Respondent (AWC 2015048290501, July 22, 2016).
Boscarino first became registered in 2012 with FINRA member firm Farmers Financial Solutions, LLC ("FFS''); and, at that time, he was also licensed as an insurance agent with FFS affiliate Farmers' Insurance ("Farmers"). The AWC asserts that Boscarino had no prior formal disciplinary history.
The AWC alleges that in March 2014, Boscarino:
[W]rote nine fictitious auto insurance policies in the names of three different households. All of the names used on the fictitious auto policies were individuals related to Boscarino. In addition, Boscarino used vehicle information for the fictitious policies that he obtained from quotes and policies provided to other individuals. Boscarino created the fictitious auto policies to meet production requirements and obtain additional compensation from his firm.
Online FINRA BrokerCheck records as of August 4, 2016, assert that FFS "Discharged" Boscarino on November 30, 2015, based upon these allegations:
The affiliate, Farmers, terminated the RR's insurance appointment after their review found that the RR, in his capacity as an insurance agent, was not adhering to their underwriting guidelines for insuring auto policies.
In accordance with the terms of the AWC, FINRA imposed upon Boscarino a Bar from association with any FINRA member in any capacity.