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Regulatory Sanctions

Vanity Derails a Broker’s Successful Career

October 17, 2018

[Photo:  Al Pacino / Devil's Advocate]


by Howard Haykin


A broker with 27 years’ experience agreed to pay a $15K fine and serve a 2-month suspension to settle FINRA charges that she provided a false date of birth to her member firms on various internal documents relating to employment applications, personal brokerage accounts records and investments.


FINRA FINDINGS.    In June 2010 and July 2011, the broker obtained a South Carolina driver's license with a false date of birth. The broker then proceeded to provide that false date of birth to member broker-dealers.


  • In July 2011, to Wells Fargo for purposes of updating her personal brokerage account records.
  • In November 2011, to Morgan Stanley, on documents pertaining to her being a new hire, including her Web CRD search consent form and Form 1-9 – as well as on account opening documents for her personal brokerage accounts.
  • In January 2014, to FSC Securities Corp., on documents pertaining to her being a new hire - including a fingerprint card and account opening documents for her personal brokerage accounts.
  • On variable annuity policy change of ownership forms and a June 2016 life insurance application that was subsequently withdrawn.


By misrepresenting her date of birth on employment records, account opening documents and investment-related records … the broker caused Wells Fargo, Morgan Stanley and FSC to maintain inaccurate books and records, and her conduct violated NASD Rule 3110(a) (for conduct before 12/5/11) and FINRA Rule 4511 (for conduct on or after 12/5/11).


By WILLFULLY submitting a Form U4 containing inaccurate information … the broker violated Article V, Section 2(c) of FINRA's By-Laws and FINRA Rule 1122 – which also constitutes a violation of FINRA Rule 2010.


By providing false and misleading statements during FSC’s internal investigation … the broker violated FINRA Rule 2010.


NOTE: The broker also incurred a $2K fine, payable to the South Carolina Department of Insurance in connection with allegations that she violated South Carolina law when she renewed her insurance license application on 4 occasions with an incorrect date of birth.


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

For details on this case, go to ...  FINRA Disciplinary Actions Online, and refer to Case #2016051424001.