Two registered reps were disciplined by FINRA for managing customers brokerage accounts at other firms - unbeknownst to their member firm or to the other broker-dealer.  [For other cases, click onto:   [ FINRA Disciplinary Actions for November ]

    1.  Reg'd Rep (Darien, IL) fined $10K, suspended 30 days.   Allegedly recommended that a customer use part of her available funds to purchase a (VUL) policy through him, and recommended that customer open an account at another firm.  RR succeeded in getting the customer to open a margin account at that other firm and in obtaining trading authority over the account.  RR Gazmen made all decisions, entered the trades directly, but was not compensated in any way for managing the account - he also was not licensed to recommend the sale of individual securities to a customer or to engage in the purchase or sale of individual securities on a customer’s behalf, he did so in handling the customer’s account at the other firm.  [C-I Note:  Perhaps he used this account as training for an eventual move into the advisory business.]  Needless to say, RR failed to mention any of this to his member firm.  (FINRA Case #2009018322101)

    2.  Reg'd Rep (Mount Airy, NC) barred from industry.   Allegedly recommended that certain of his customers open online brokerage accounts at another broker-dealer and that they give him discretionary authority over those accounts.  Some followed the advice;  others opened online accounts, but didn't give the RR written authority to trade in the accounts.  Needless to say, RR failed to mention any of this to his member firm or to the online B/D.  RR Sawyers concealed these activities from both B/D's by not using his own name in connection with the accounts, by using a computer other than the firm’s, and by using a non-firm email address for these activities - including receipt of confirmations and monthly account statements.  RR Sawyers failed to timely respond to FINRA RFI's or to timely appear for a FINRA on-the-record interview - which led to his being barred. (FINRA Case #2008015712501)