[ by Melanie Gretchen ] A principal of an investment firm committed the most unforgivable sin.  During his employment at one of the last FINRA firms he will ever work for, he violated firm policy by falsifying expense reports.  However, his tragic flaw was not in the $4,000 he eventually processed;  it was simply his disregard of FINRA due process by failing to appear for an on-the-record interview – and for that, he'll never work in this business again. FINRA Findings and Allegations. John Fitzgerald Failla worked as a General Securities Representative and a General Securities Principal when he became registered with Invesco AIM Distributors, Inc. in the same capacities.  From 2008 to 2009, Invesco policy required that representatives pay business-related expenses prior to filing expense reports and receiving reimbursement from the firm. Between January 2008 and February 2009, Failla submitted copies of the front side of checks as evidence that he had paid the expenses incurred.  In 8 cases, the vendor never received the checks and the business expenses were never paid prior to submission of the expense reports, in violation of NASD Rule 2110 and FINRA Rule 2010.  All told, the amount of the expenses submitted was approximately $4,000, which Failla used to pay the vendor by cash or money order. FINRA Sanctions. The most damning finding by FINRA is Failla's failure to appear for his on-the-record interview on 1/4/11, in violation of FINRA Rules 8210 and 2010 – for which he was barred from the industry.  Before his exile, Failla acquired a Series 24, 6, 7, 63, 65, and 66 license.  Since joining the securities industry in 1999 as an Investment Company and Variable Contracts Products Representative, he was registered at Smith Barney and Merrill Lynch, Pierce, Fenner & Smith Inc. For further details, go to [FINRA, August 2012 Monthly Disciplinary Actions] and [FINRA AWC #2009017609201, August 2012].