In May, FINRA barred an RR in Cherry Hill, NJ, from the industry for allegedly distributing an answer key to the state long-term care insurance (LTC CE) course exam;  by August, FINRA had disciplined six more.  Mr. Donato, the first individual to be disciplined, was also charged with providing part of his Social Security Number to an individual so that person could satisfy a requirement for a CEP exam that someone proctor the exam - even though he wasn't present when the individual signed on to take the exam.

Passing the course is required for getting a license to sell LTC policies.  Here are their stories:

    1.  Reg'd Supervisor, Ridgefield, MA, fined $5K, suspended one month. Supervisor allowed another individual to improperly assist him in completing a Florida long-term care (LTC) continuing education (CE) requirement by taking the majority of an LTC CE exam for him.  Got his license, then sold a universal life policy with LTC benefits to a client.

    2.  Registered Rep, West Chester, PA, fined $5K, suspended 60 days.  In order to assist FA's taking their LTC CE state exams, this RR created and distributed an answer key for one state exam, and received and distributed an

    3.  Registered Rep, Cherry Hill, NJ, fined $5K, suspended one month.  This RR improperly distributed the answer key for a state insurance LTC CE exam to firm employees and FA's outside of the firm.

    4.  Registered Rep, Nashville, TN, fined $5K,  suspended one month.  This RR requested and/or received different answer keys for a state insurance LTC CE exam from firm employees who created them and he then distributed one of the answer keys to FA's outside of the firm.

    5.  Registered Rep, Naperville, IL, fined $5K, suspended 60 days.   This RR created an answer key by saving a copy of his answers to a state insurance LTC CE examination and sent the answer key to another firm employee.

    6.  Registered Rep, East Fallowfield, PA, fined $5K, suspended 10 days.  This RR requested that another wholesaler send him an answer key for a state insurance LTC CE examination, and then improperly distributed the answer key to other firm employees.   [FINRA Disciplinary Actions - May, July, Aug 2010]