FINRA Fines Firm for Failing to Supervise Sales Assistant that Misappropriated Customer Funds

FINRA AWC Letter No. 2008013231502

August 9, 2011

FINRA announced a $500,000 against a broker-dealer for failing to supervise a registered sales assistant who, over an eight year period, misappropriated nearly $750,000 from customers. The release alleges that the broker-dealer failed to investigate a series of "red flags" that should have put it on notice as to the sales assistant's improper conduct.

Cross References

• FINRA News Release (Aug. 9, 2011)
• NASD Rules 2110, 3010, 3110