Here we will discuss a few FINRA enforcement actions carried out in our industry that show why staying compliant is so important for you and your agency.
May 8, 2025
FINRA issued an AWC barring a representative from association with any FINRA member. The representative engaged in private securities transactions totaling $1,401,690 without disclosing or seeking approval from his firm. He recommended and facilitated the purchase of promissory notes for six customers totaling $1,101,690 and personally invested $300,000. His activities included describing the notes, explaining terms, introducing investors to the issuers, assisting with documentation, and helping transfer funds. The issuers later defaulted, and state regulators alleged the notes were part of a fraudulent scheme (the representative was not named as a defendant).
(FINRA Case #2023079339301)
May 12, 2025
FINRA issued an AWC assessing a deferred $10,000 fine and imposing a 12-month suspension for engaging in private securities transactions without prior written notice to the firm. The representative solicited individuals to invest in a fund, answered investor inquiries, and distributed the private placement memorandum. More than $1 million was invested as a result. (FINRA Case #2024081111101)