FINRA Suspends Former Broker for Falsifying Expense Reports
Commentary by Steven Lofchie
FINRA suspended a former broker for charging personal meals and car rides to her firm credit card and submitting them as business expenses.
FINRA found that during the relevant period the representative charged $3,948 for 86 personal meals and car rides to her corporate card and sought reimbursement from her firm by characterizing them as business expenses, which the firm's policy prohibited. FINRA said that in some expense reports, she falsely represented that clients had attended the meals. The firm discharged her for submitting inaccurate expense reports.
FINRA found the conduct violated FINRA Rule 2010 ("Standards of Commercial Honor and Principles of Trade").
The broker-dealer consented to an eight-month suspension from associating with any FINRA member and a $5,000 fine.
Commentary
FINRA continues a pattern of imposing more significant penalities on individuals who steal somewhat insignificant amounts from their employers than it does on individuals who steal very sigificant amounts from their clients, including from senior citizens. This discrepancy should be addressed.