Subscribe to our mailing list

* indicates required







We seek to provide information, insights and direction that may enable the Financial Community to effectively and efficiently operate in a regulatory risk-free environment by curating content from all over the web.


Stay Informed with the latest fanancialish news.




Regulatory Sanctions

Broker Deleted Customer Records from Firm Database

November 8, 2018

by Howard Haykin


WITH MALICE AND FORETHOUGHT … this individual, while expecting to resign his association with his member firm, directed his office assistant and an intern to remove the telephone numbers of firm customers whom he had serviced from the firm’s database.


All told, 322 customer telephone numbers were removed. A high school prank? Hardly. This individual, with 20 years’ experience with 7 firms, had displayed a recent pattern of violative conduct.


  • After having no disclosures on his CRD records from 1994 through 2010, this broker …
  • In April 2011, was U5’d for his “failure to meet personal financial obligations;”
  • From 2012 through 2015, disclosed 9 judgments/liens – most of which were tax-related;
  • In June 2016, was sanctioned by FINRA for willfully failing to amend his Form U4.


Through his violative conduct, the broker caused or committed violations of FINRA Rules 4511(a) (Books and Records) and 2010 (Standards of Commercial Honor and Principles of Trade).


FINANCIALISH TAKE AWAYS.    FINRA sanctions the broker with a $5K fine and a 3-month suspension.


Those sanctions just don’t seem large enough to provide a deterrent to future violations by this individual – notwithstanding the fact that he hasn’t been associated with another broker-dealer since July 2016. Keep in mind, the broker acted ‘with malice and forethought’, which should count for something.


This case was reported in FINRA Disciplinary Actions for August 2018.

For details on either case, go to ...  FINRA Disciplinary Actions Online, and refer to Case #2016051407501.