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NEWSLETTERS & ALERTS
Broker's Supervisor Barred for Falsifying Logs and Blotters
by Howard Haykin
And, unfortunately for DAS, he was caught twice falsifying certain firm records to create the appearance that he had reviewed the records as part of his supervisory review.
- In April 2016, FINRA requested documents related to the supervision of the rogue registered rep, including correspondence logs and checks and securities receipts blotters. When DAS discovered that he didn’t have all the requested logs and blotters, he used correction fluid and a copier to alter dates and signatures on at least 2 existing logs and 2 existing blotters – and thereby cover the missing months.
- In March 2018, when FINRA requested logs and blotters maintained by DAS for other registered reps that he supervised, he falsified at least 2 more blotters and 2 more logs – again using correction fluid and a copier to cover missing months for another registered rep under his supervision.
Then in June 2018, DAS gave false and misleading testimony to FINRA. He denied having falsified all but one of the applicable logs and blotters - when, as FINRA described in its case writeup, DAS had falsified at least 8 logs and blotters.
FINANCIALISH TAKE AWAYS. DAS had 19 years’ experience with 2 firms when he was U5’d by Questar in mid-2018. So one would presumethat he would do everthing in his power to avoid a repetition of his 2016 follies. But no, DAS managed to get 'caught with his pants down' for a second time. Perhaps DAS placed mistaken confidence in his ability to "cover his tracks" by, once again, falsifying supervisory logs and blotters. DAS was wrong, and for that he deserved to be barred from the industry.
This case was reported in FINRA Disciplinary Actions for May 2019.
For further details, click on... FINRA AWC #2016049050801.