FINRA Suspends Broker for Failing to Disclose Disciplinary Action

FINRA suspended a broker for failing to disclose a state consent order on multiple registration forms.

According to the AWC, the broker had notice of a Maryland Securities Commissioner's Consent Order against him, but failed to disclose it on his Form U4 across his associations with four different member firms over a nearly five-year period. FINRA stated that the undisclosed state order involved findings that the broker had engaged in dishonest and unethical practices, including effecting discretionary transactions without written authorization. 

FINRA found that the broker's conduct violated Article V, Section 2(c) ("Application for Registration") of FINRA's By-Laws and FINRA Rules 1122 ("Filing of Misleading Information as to Membership or Registration") and 2010 ("Standards of Commercial Honor and Principles of Trade"). 

To settle the matter, the broker agreed to (i) a censure, (ii) a six-month suspension from associating with any FINRA member firm and (iii) a $5,000 fine.