FINRA Bars Broker for Refusal to Provide Testimony

FINRA barred a broker for failing to provide testimony in connection with an investigation into unauthorized sales and funds transfers from a customer’s account.

According to the AWC, the broker's former employer disclosed in a Form U-5 filing that the broker was "discharged" for "[c]oncerns related to unauthorized sales, and funds transfers from a customer's account to the representative's creditors." FINRA initiated an investigation following its review of the Form U-5. FINRA said the broker initially cooperated, but later ceased doing so after being asked to appear for "on-the-record testimony." FINRA said that the broker's counsel informed FINRA that he had received the request but "will not appear for on-the-record testimony at any time."

FINRA found that the broker's refusal to provide testimony violated FINRA Rules 8210 ("Provision of Information and Testimony and Inspection and Copying of Books") and 2010 ("Standards of Commercial Honor and Principles of Trade").

To settle the charges, the broker agreed to a bar from associating with any FINRA member in all capacities.