[ by Melanie Gretchen ] A Bellevue, WA-based general securities rep entered the securities industry in July 2001, and by 2011 apparently felt ready for his biggest challenge yet - to fleece many of his customers' account to the tune of over $3.4 million.  He was quite inventive in the way he went about defrauding his customers.  committing ow he went about doing it was quite Broker's Background. Richard Allan Finger, Jr., entered the industry as an associated person in July 2001 and in September 2001 - an ominous date! - he became registered as a Series 7 General Securities Rep. Between 2001 and 2011 he worked at various broker-dealers, including First Washington Corporation and Morgan Stanley. His big moment came in February 2011, when he apparently purchased Black Diamond Securities.  Finger was the CEO, the sole owner and the firm's only registered broker.  In June 2011, he passed the Series 24 and became a General Securities Principal.  By September 2011, FINRA suspended his registration. FINRA Findings and Allegations. During his time at Black Diamond Securities, Finger managed some 40 accounts for 25 customers.  He exercised discretion for some or all of those accounts.  From the beginning - in February 2011 - until July 2011, Finger must have churned the heck out of his customers' accounts.  Ten of his customers incurred losses of $1.6mn in 17 of their accounts.  They also incurred commission charges in excess of $1.8mn in those same accounts. To conceal the losses in those 17 accounts, Finger sent fabricated account statements to the customer via email.  The fabricated statements overstated the net asset values of the accounts and understated the amounts of commissions that had been charged. All told, on or before 4/18/11, and continuing through at least 8/3/11, Finger created and sent at least 45 inaccurate statements for the 17 accounts, which overstated the net asset values by amounts ranging from approximately $7,000 to more than $1.5 million.  Most of those statements also understated the amounts of commissions - by amounts ranging from approximately $2,400 to $430,000. FINRA Sanctions. Finger was barred from the industry. For further details, go to [FINRA AWC #2011029005802].