Bad Brokers

According to FINRA, John A. Perez-Cubero (CRD #6674954), formerly based in Bound Brook, New Jersey, was barred from association with any FINRA member firm in all capacities effective September 11, 2024. The bar was imposed through an Acceptance, Waiver, and Consent (AWC) agreement after Perez-Cubero...

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According to FINRA, John A. Perez-Cubero (CRD #6674954), formerly based in Bound Brook, New Jersey, was barred from association with any FINRA member firm in all capacities effective September 11, 2024. The bar was imposed through an Acceptance, Waiver, and Consent (AWC) agreement after Perez-Cubero refused to produce information and documents requested by FINRA during an investigation that originated from a Form U5 filed by his member firm. The Form U5 disclosed that Perez-Cubero had been terminated due to allegations of an unauthorized disbursement from a customer's checking account that was covered by an unauthorized transfer from the customer's brokerage account. Although Perez-Cubero initially cooperated with FINRA's investigation by providing documents and information and appearing for testimony, he ultimately ceased doing so. Without admitting or denying the findings, Perez-Cubero consented to the sanction. The underlying allegations involve unauthorized movement of customer funds, which is one of the most serious forms of misconduct in the securities industry. An unauthorized disbursement from a customer's checking account, funded by an unauthorized transfer from a brokerage account, suggests a pattern of converting customer assets without permission. This type of conduct, often referred to as conversion or misappropriation, directly harms investors by depriving them of their own money and violates fundamental principles of trust that underpin the broker-client relationship. Securities regulators treat unauthorized movement of customer funds with the highest level of scrutiny because it strikes at the core of investor confidence in the financial system. For investors, this case underscores the critical importance of monitoring your accounts regularly. Review every transaction on your brokerage and bank statements, and immediately question any transfers or withdrawals that you did not authorize. Most firms provide online access to account activity, making it easier than ever to stay informed about movements in your accounts. If you discover unauthorized activity, report it immediately to the firm's compliance department, to FINRA, and to your state securities regulator. FINRA's BrokerCheck tool allows you to research the history of any registered broker, including any terminations, complaints, or regulatory actions. Perez-Cubero's permanent bar from the industry ensures he is no longer permitted to work with any FINRA-registered firm.

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According to FINRA, Tamarah Daniel Taylor (CRD #4237020), formerly based in Atlanta, Georgia, was barred from association with any FINRA member firm in all capacities effective September 16, 2024. The bar was imposed through an Acceptance, Waiver, and Consent (AWC) agreement based on findings that T...

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According to FINRA, Tamarah Daniel Taylor (CRD #4237020), formerly based in Atlanta, Georgia, was barred from association with any FINRA member firm in all capacities effective September 16, 2024. The bar was imposed through an Acceptance, Waiver, and Consent (AWC) agreement based on findings that Taylor made misrepresentations to an entity seeking to become a registered broker-dealer and fabricated documents reflecting that the entity was a fully registered broker-dealer and FINRA member. Without admitting or denying the findings, Taylor consented to the sanction. Taylor was hired by the entity to, among other things, register its subsidiary as a broker-dealer with the SEC and apply for FINRA membership. Taylor began the registration process by preparing and filing a Form BD for the entity. However, Taylor never completed and filed a FINRA New Membership Application Form (Form NMA) for the entity, and the entity never became approved as a FINRA member nor fully registered as a broker-dealer. Despite this, Taylor falsely represented to the entity, both orally and in written correspondence, that she had completed a Form NMA, that the entity was a FINRA member, and that it was fully registered with the SEC as a broker-dealer. Furthermore, Taylor fabricated documents reflecting that the entity was a fully registered broker-dealer and FINRA member and provided those fabricated documents to the entity and to external auditors. This conduct is particularly egregious because it involves deliberate deception at multiple levels. By fabricating regulatory documents and misrepresenting an entity's registration status, Taylor created a situation where the entity may have believed it was authorized to conduct securities business when it was not. Operating as an unregistered broker-dealer is a serious violation of federal securities laws and can expose both the entity and its customers to significant legal and financial risks. For investors and businesses in the financial services industry, this case is a stark reminder to independently verify the registration status of any firm or individual through official sources such as FINRA BrokerCheck and the SEC's EDGAR and IAPD databases. Never rely solely on documents or representations provided by the person responsible for completing the registration. Taylor's permanent bar from the securities industry ensures she can no longer serve in any capacity with a FINRA-registered firm.

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According to FINRA, Stephen James Sullivan (CRD #3123249), formerly based in Massapequa Park, New York, was barred from association with any FINRA member firm in any capacity effective September 17, 2024. The bar became final through an Office of Hearing Officers (OHO) decision based on findings tha...

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According to FINRA, Stephen James Sullivan (CRD #3123249), formerly based in Massapequa Park, New York, was barred from association with any FINRA member firm in any capacity effective September 17, 2024. The bar became final through an Office of Hearing Officers (OHO) decision based on findings that Sullivan failed to provide on-the-record testimony, information, and documents requested by FINRA pursuant to FINRA Rule 8210 in connection with an investigation into potential churning and excessive trading in his customers' accounts. The findings stated that Sullivan initially appeared with counsel and testified for almost five hours. During testimony, FINRA asked Sullivan whether he changed the investment strategy he recommended to his customers following the implementation of Regulation Best Interest (Reg BI). Sullivan refused to answer the question and stated that he would not provide additional testimony. At the time Sullivan terminated his testimony, FINRA still had a substantial number of questions remaining, including questions about his trading in other customers' accounts. Sullivan subsequently refused to provide any additional testimony and also failed to provide documents and information requested under Rule 8210. Churning and excessive trading occur when a broker engages in an unreasonable volume of transactions in a customer's account primarily to generate commissions rather than to benefit the investor. This practice can devastate an investor's portfolio through accumulated transaction costs, fees, and tax consequences, while enriching the broker through increased compensation. Reg BI, which took effect in June 2020, requires broker-dealers and their associated persons to act in the best interest of their retail customers when making recommendations, adding an additional layer of protection against practices like churning. For investors, this case highlights the importance of monitoring trading activity in your accounts. Warning signs of potential churning include frequent buy-and-sell transactions, unexpectedly high fees or commissions, and portfolio performance that significantly lags the relevant benchmarks despite active trading. If you notice excessive trading in your account, request a detailed accounting of all transactions and associated costs. FINRA's BrokerCheck tool can help you research a broker's disciplinary history before entrusting them with your investments. Sullivan's permanent bar ensures he is no longer permitted to work in any capacity with a FINRA-registered firm, protecting future investors.

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According to FINRA, Armando Vargas (CRD #6108068), formerly based in Omaha, Nebraska, was barred from association with any FINRA member firm in all capacities effective September 19, 2024. The bar was imposed through an Acceptance, Waiver, and Consent (AWC) agreement after Vargas refused to appear f...

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According to FINRA, Armando Vargas (CRD #6108068), formerly based in Omaha, Nebraska, was barred from association with any FINRA member firm in all capacities effective September 19, 2024. The bar was imposed through an Acceptance, Waiver, and Consent (AWC) agreement after Vargas refused to appear for on-the-record testimony requested by FINRA. The testimony was sought in connection with an investigation into the circumstances of his termination from his member firm. Without admitting or denying the findings, Vargas consented to the sanction and to the entry of findings. When a broker is terminated from a member firm, the firm is required to file a Form U5 disclosing the circumstances of the termination. If the termination raises concerns about potential misconduct, FINRA may open an investigation and request that the former broker cooperate by providing testimony and documents. FINRA Rule 8210 grants FINRA the authority to compel this cooperation, and a refusal to comply is treated as an independent violation warranting the most severe sanction -- a bar from the securities industry. The rationale for this strict approach is that FINRA's ability to protect investors depends entirely on its ability to investigate potential wrongdoing. Without cooperation from the individuals involved, FINRA cannot determine whether misconduct occurred, assess its scope, or take appropriate remedial action. A broker who refuses to cooperate with a regulatory investigation raises serious questions about their fitness to serve in the securities industry, regardless of the outcome of the underlying investigation. For investors, this case reinforces the importance of conducting due diligence on any financial professional who manages your money. FINRA's BrokerCheck tool provides free access to the registration and disciplinary history of brokers and brokerage firms, including any terminations, regulatory actions, or customer complaints. Reviewing this information before establishing a relationship with a broker can help you make informed decisions and avoid potential problems. If your broker is terminated from their firm and you are not promptly notified, or if you have concerns about the handling of your accounts, contact the firm's compliance department and consider filing a complaint with FINRA. Vargas's permanent bar ensures he can no longer work in any capacity with a FINRA-registered firm.

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According to FINRA, Christopher J. Booher (CRD #7645159), formerly based in Kechi, Kansas, was barred from association with any FINRA member firm in all capacities effective September 20, 2024. The bar was imposed through an Acceptance, Waiver, and Consent (AWC) agreement after Booher refused to pro...

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According to FINRA, Christopher J. Booher (CRD #7645159), formerly based in Kechi, Kansas, was barred from association with any FINRA member firm in all capacities effective September 20, 2024. The bar was imposed through an Acceptance, Waiver, and Consent (AWC) agreement after Booher refused to produce the information and documents requested by FINRA in connection with an investigation that originated from an amended Form U5 submitted by his former member firm. The amended Form U5 stated, in part, that Booher had submitted fraudulent accident-only insurance policy claims on himself and a family member and submitted fraudulent business expenses for reimbursement. Additionally, during the course of its investigation, the firm found that Booher had also forged birthdates on applicants' applications to quote coverage. Without admitting or denying the findings, Booher consented to the sanction. The underlying allegations in this case paint a troubling picture of systematic dishonesty. Submitting fraudulent insurance claims and falsifying business expense reimbursements are forms of fraud that harm both the firm and its clients. Forging birthdates on insurance applications is particularly concerning because it can result in customers receiving inaccurate coverage quotes, potentially leading them to purchase policies that do not reflect their actual risk profile or premium obligations. This type of document falsification undermines the integrity of the insurance underwriting process and can have real financial consequences for consumers who rely on accurate information to make coverage decisions. For investors and insurance consumers, this case is an important reminder to carefully review all documents prepared by a financial professional on your behalf, including insurance applications, account forms, and any other paperwork. Verify that personal information such as birthdates, addresses, and beneficiary designations are accurate before signing. If you discover that a broker or agent has falsified information on your applications or other documents, report it immediately to the firm, FINRA, and your state insurance regulator. FINRA's BrokerCheck tool is a free resource that allows you to research the background of registered financial professionals. Booher's permanent bar from the securities industry ensures he is no longer permitted to work with any FINRA-registered firm, protecting the investing public from further potential misconduct.

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According to FINRA, Maria De Los Angeles Leon (CRD #6042515), formerly based in Paw Paw, Michigan, was barred from association with any FINRA member firm in all capacities effective September 20, 2024. The bar was imposed through an Acceptance, Waiver, and Consent (AWC) agreement after Leon refused ...

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According to FINRA, Maria De Los Angeles Leon (CRD #6042515), formerly based in Paw Paw, Michigan, was barred from association with any FINRA member firm in all capacities effective September 20, 2024. The bar was imposed through an Acceptance, Waiver, and Consent (AWC) agreement after Leon refused to provide information and documents or to appear for on-the-record testimony requested by FINRA. The requests were made in connection with an investigation into the circumstances surrounding the Form U5 filed by her member firm. The Form U5 disclosed that the firm had discharged Leon during an investigation into misappropriation of customer funds. Without admitting or denying the findings, Leon consented to the sanction and to the entry of findings. Misappropriation of customer funds -- the unauthorized taking or use of money belonging to clients -- is one of the most serious forms of misconduct in the financial services industry. It represents a direct theft from investors who have placed their trust and their savings in the hands of a financial professional. When a firm discovers potential misappropriation, it is obligated to investigate, terminate the individual involved if the allegations are substantiated, and report the circumstances on a Form U5 filing with FINRA. FINRA then conducts its own investigation, which requires the cooperation of the individual in question. Leon's refusal to cooperate with FINRA's investigation by providing information, documents, and testimony constitutes a separate violation of FINRA Rule 8210 and resulted in her permanent bar from the industry. For investors, this case is a critical reminder to monitor your accounts closely and regularly. Review monthly statements for any unauthorized withdrawals, transfers, or other suspicious activity. Many firms now offer real-time alerts for account transactions, which can help you detect unauthorized activity quickly. If you notice any discrepancy or unauthorized transaction, contact your brokerage firm immediately and follow up with a written complaint. You should also file a complaint with FINRA and your state securities regulator. FINRA's BrokerCheck tool allows you to research the disciplinary history of any registered broker. Leon's permanent bar from the securities industry ensures she is no longer able to work in any capacity with a FINRA-registered firm, protecting investors from potential future harm.

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According to FINRA, James Anderson Martin (CRD #2928678), formerly based in Jacksonville, Illinois, was barred from association with any FINRA member firm in all capacities effective September 20, 2024. The bar was imposed through an Acceptance, Waiver, and Consent (AWC) agreement after Martin refus...

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According to FINRA, James Anderson Martin (CRD #2928678), formerly based in Jacksonville, Illinois, was barred from association with any FINRA member firm in all capacities effective September 20, 2024. The bar was imposed through an Acceptance, Waiver, and Consent (AWC) agreement after Martin refused to provide documents and information requested by FINRA in connection with its investigation into the circumstances surrounding a Form U5 filed by his member firm. The Form U5 stated that the firm had discharged Martin because he borrowed money from a client. Without admitting or denying the findings, Martin consented to the sanction and to the entry of findings. Borrowing money from clients is a practice that is strictly prohibited by most broker-dealer firms and is a violation of FINRA rules in most circumstances. FINRA Rule 3240 addresses borrowing and lending arrangements between registered persons and their customers and provides very limited exceptions, such as borrowing from a family member who is also a customer. Outside of these narrow exceptions, borrowing from clients creates serious conflicts of interest that can compromise a broker's ability to act in the customer's best interest. A broker who owes money to a client may be tempted to make unsuitable investment recommendations, engage in unauthorized trading, or take other actions to avoid repaying the loan or to generate additional income. The relationship between a broker and a client is built on trust, and borrowing money fundamentally undermines that trust. Additionally, the power dynamic inherent in the relationship may make it difficult for a customer to refuse a loan request from their broker or to demand repayment, leaving the customer in a vulnerable position. For investors, this case is a clear warning: never lend money to your broker or financial advisor. If your broker asks to borrow money, it is a serious red flag that should be reported immediately to the firm's compliance department, FINRA, and your state securities regulator. Legitimate financial professionals do not borrow from their clients. You can use FINRA's BrokerCheck tool to research the background and disciplinary history of any registered broker before entrusting them with your assets. Martin's permanent bar from the securities industry ensures he can no longer work with any FINRA-registered firm, protecting future investors from similar potential misconduct.

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According to FINRA, Wilfredo Felix Jr. (CRD #2693672), formerly based in North Amityville, New York, was barred from association with any FINRA member firm in all capacities. On September 23, 2024, Felix appealed a SEC decision to the U.S. Court of Appeals for the District of Columbia Circuit. The S...

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According to FINRA, Wilfredo Felix Jr. (CRD #2693672), formerly based in North Amityville, New York, was barred from association with any FINRA member firm in all capacities. On September 23, 2024, Felix appealed a SEC decision to the U.S. Court of Appeals for the District of Columbia Circuit. The SEC had sustained the findings and sanctions imposed by the National Adjudicatory Council (NAC). The bar was based on findings that Felix failed to respond to multiple FINRA Rule 8210 requests for his firm's general ledger and most recent annual audited report. The bar remains in effect pending review. This case involves a multi-level adjudicatory process that illustrates how FINRA enforcement actions proceed through various stages of review. After FINRA imposed the bar, Felix challenged the decision, which was reviewed and upheld by the NAC -- FINRA's appellate body. Felix then appealed to the SEC, which also sustained the findings and sanctions. The appeal to the U.S. Court of Appeals represents the final stage of review available. Throughout this process, the bar remains in effect, meaning Felix is prohibited from working in the securities industry while the appeal is pending. FINRA Rule 8210 is a critical enforcement tool that requires associated persons and member firms to provide information and documents to FINRA upon request. The requests for a firm's general ledger and annual audited report are fundamental to FINRA's ability to oversee the financial health and regulatory compliance of member firms. These documents provide essential insight into a firm's financial condition, business activities, and compliance with net capital and other financial responsibility rules. A firm's failure to produce these records raises serious concerns about potential financial irregularities or misconduct. For investors, this case highlights the importance of the regulatory infrastructure that protects them. FINRA's ability to request and obtain firm financial records is essential to ensuring that broker-dealers remain financially sound and operate in compliance with securities laws. You can verify a firm's registration status and review any regulatory actions through FINRA's BrokerCheck tool. Felix's bar from the industry, which remains in effect pending his appeal, ensures that he is currently prohibited from working with any FINRA-registered firm, providing protection for the investing public during the appeals process.

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According to FINRA, Jessica Lynn Pinkard (CRD #7809362), formerly based in Youngsville, North Carolina, was barred from association with any FINRA member firm in all capacities effective September 23, 2024. The bar was imposed through an Acceptance, Waiver, and Consent (AWC) agreement after Pinkard ...

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According to FINRA, Jessica Lynn Pinkard (CRD #7809362), formerly based in Youngsville, North Carolina, was barred from association with any FINRA member firm in all capacities effective September 23, 2024. The bar was imposed through an Acceptance, Waiver, and Consent (AWC) agreement after Pinkard refused to provide documents and information and to appear for on-the-record testimony requested by FINRA. The investigation was initiated in connection with the circumstances surrounding a Form U5 filed by her member firm. The Form U5 stated that the firm had discharged Pinkard for violating the policies of its banking affiliate by falsifying a customer's signature on a wire agreement and facilitating cash exchanges. Without admitting or denying the findings, Pinkard consented to the sanction and to the entry of findings. The underlying conduct alleged in this case is extremely serious. Falsifying a customer's signature on a wire agreement constitutes forgery, a practice that can result in unauthorized transfers of customer funds and is a violation of both securities regulations and criminal law. Wire agreements authorize the transfer of funds, and a forged signature means the customer did not consent to the transaction. Facilitating cash exchanges outside of normal firm procedures is also a significant compliance violation, as it can be associated with money laundering, structuring, or other financial crimes. Financial institutions are required to maintain strict controls over cash transactions and wire transfers to comply with anti-money laundering regulations and to protect customer assets. For investors, this case serves as an important reminder to carefully review all documents associated with your accounts, especially wire transfer authorizations and other transaction records. Never sign blank forms, and always request copies of any documents you sign. If you receive confirmation of a wire transfer or other transaction that you did not authorize, contact your firm immediately and follow up with a written complaint. You should also report suspected forgery or unauthorized transactions to FINRA and to law enforcement. FINRA's BrokerCheck tool allows you to research the background of any registered broker or firm. Pinkard's permanent bar from the industry ensures she is no longer permitted to work in any capacity with a FINRA-registered firm, safeguarding future investors.

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According to FINRA, Brian Scott Graham (CRD #2581633), formerly based in Naperville, Illinois, was barred from association with any FINRA member firm in all capacities effective September 27, 2024. The bar was imposed through an Acceptance, Waiver, and Consent (AWC) agreement after Graham refused to...

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According to FINRA, Brian Scott Graham (CRD #2581633), formerly based in Naperville, Illinois, was barred from association with any FINRA member firm in all capacities effective September 27, 2024. The bar was imposed through an Acceptance, Waiver, and Consent (AWC) agreement after Graham refused to appear for on-the-record testimony requested by FINRA. The testimony was sought in connection with FINRA's investigation of allegations made in an amended Form U4 submitted by his member firm. The Form U4 disclosed that a customer alleged that Graham made unauthorized ATM withdrawals. Without admitting or denying the findings, Graham consented to the sanction and to the entry of findings. The allegation of unauthorized ATM withdrawals is a deeply troubling form of misconduct. If a financial professional has access to a customer's debit card or account information and uses it to make ATM withdrawals without the customer's knowledge or consent, this constitutes theft and a serious violation of the trust placed in that professional. Unauthorized access to customer funds, whether through ATM withdrawals, wire transfers, or any other means, is one of the most egregious violations in the securities industry and can result in criminal prosecution in addition to regulatory sanctions. Firms are required to disclose such allegations through regulatory filings such as the Form U4, which records the registration information and disclosure history of securities industry professionals. When a customer reports unauthorized withdrawals, the firm must investigate and report the matter, triggering potential FINRA scrutiny. Graham's refusal to appear for testimony in connection with this investigation led to his permanent bar, as FINRA treats non-cooperation as an independent and serious violation. For investors, this case underscores the importance of safeguarding your account information, including debit cards, PINs, and login credentials. Never share this information with your broker or financial advisor, as they should not need direct access to your banking instruments. Monitor your bank and brokerage statements regularly for unauthorized transactions, and set up transaction alerts when available. If you discover unauthorized ATM withdrawals or other suspicious activity, report it immediately to your financial institution, FINRA, and law enforcement. FINRA's BrokerCheck tool is a free resource for researching the background of any registered financial professional. Graham's permanent bar ensures he can no longer work with any FINRA-registered firm.

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