A broker purchased a mutual fund for a customer's account - knowing that the customer had died.  The broker then failed to show up for FINRA on-the-record interview:  they never found out what the broker was thinking.  FINRA barred him from the industry.

    Details of the Mutual Fund Purchase.  The broker was working with the customer (prior to the customer's death) on a purchase of $4,662 of an entity Class A mutual fund share.  He apparently discussed the transaction with this customer and prepared certain paperwork for the transaction - all prior to the customer’s death.  But the customer died before the purchase could be made.

Even though he knew the customer had died, the broker, at the time of the transaction, didn't consult with any representative of the deceased customer’s estate.  Nor did he notify the firm about the loss.  [C-I Note:  Our take is the broker probably was frustrated to see all his fine work go to waste, so he decided to put through the transaction.  Although, how much commission could he have generated on a $5K sale?]

    Broker's Troubles with Variable Annuities.   FINRA also charged the broker with violating its suitability rule by failing to understand or convey to customers the cost of a rider to a variable annuity, pursuant to transactions he recommended to customers:  (i) he incorrectly communicated the imposed fee;  and, (ii) he didn't understand the risks and rewards inherent in the VA with the rider feature.

This is FINRA Case #2009017087301.   [Disciplinary Actions for February]