Bad Brokers

According to FINRA, Antaun Cyril Lewis Barnett was assessed a deferred fine of $5,000 and suspended from association with any FINRA member in all capacities for six months for improperly using his member firm's funds.

Barnett charged personal expenses totaling $4,463.49 to his firm credit card an...

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According to FINRA, Antaun Cyril Lewis Barnett was assessed a deferred fine of $5,000 and suspended from association with any FINRA member in all capacities for six months for improperly using his member firm's funds.

Barnett charged personal expenses totaling $4,463.49 to his firm credit card and a firm account at a car service provider. In expense reports submitted to the firm, Barnett characterized these expenses as business expenses when they were actually personal in nature.

The 15 improper expenses consisted of hotel stays, meals, and transportation costs associated with non-business trips. This conduct violated the firm's travel and business expense policy.

After the firm questioned Barnett about the expenses, he offered to reimburse the firm. However, the willingness to repay does not excuse the initial misconduct.

Misuse of firm funds, even in relatively small amounts, is a serious violation that reflects on a registered person's integrity and trustworthiness. The securities industry depends on trust, and individuals who misrepresent expenses or misuse firm resources demonstrate a willingness to be deceptive for personal gain.

The suspension is in effect from October 6, 2025, through April 5, 2026.

For investors, cases involving misuse of firm funds should raise concerns about a broker's overall honesty and integrity. While this case involved firm funds rather than customer funds, the underlying conduct, misrepresenting facts for personal financial benefit, is troubling regardless of who is victimized.

You can check your broker's disciplinary history through FINRA's BrokerCheck system. If your broker has a history of integrity-related violations, consider whether you are comfortable entrusting them with your financial affairs.

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According to FINRA, Timothy Daniel Curran was fined $5,000 and suspended from association with any FINRA member in all capacities for one month for improperly sending confidential and proprietary information from his firm's systems when leaving for a new firm.

In anticipation of leaving his membe...

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According to FINRA, Timothy Daniel Curran was fined $5,000 and suspended from association with any FINRA member in all capacities for one month for improperly sending confidential and proprietary information from his firm's systems when leaving for a new firm.

In anticipation of leaving his member firm, Curran emailed confidential information to his personal email address and printed and retained documents. This information included nonpublic information about the firm's customers.

The information was directly relevant to Curran's new position, and he accessed some of it after moving to the new firm. This conduct violated firm policies that Curran had agreed to abide by in firm ethics training, in annual compliance questionnaires, and in an employment agreement.

While brokers changing firms is common, the manner in which customer information is handled during transitions is subject to strict rules. Customer information belongs to the firm and is protected by privacy regulations. Taking such information without authorization, particularly by emailing it to personal accounts, creates security risks and violates customer privacy.

The suspension was in effect from November 3, 2025, through December 2, 2025.

For investors, this case illustrates the importance of customer information protection. When your broker changes firms, you should receive notification and an opportunity to decide whether to move your account or remain with the existing firm. Your information should not be taken by departing brokers without proper authorization.

If you have concerns about how your information was handled during a broker transition, you can file a complaint with FINRA or contact the firms involved to inquire about their information security procedures.

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According to FINRA, Eyan Michael Townsend was assessed a deferred fine of $10,000 and suspended from association with any FINRA member in all capacities for one year for causing his member firm to fail to preserve required books and records and for impeding a firm investigation.

Townsend sent una...

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According to FINRA, Eyan Michael Townsend was assessed a deferred fine of $10,000 and suspended from association with any FINRA member in all capacities for one year for causing his member firm to fail to preserve required books and records and for impeding a firm investigation.

Townsend sent unauthorized business-related text messages on his personal cell phone without disclosing his use of text messages to the firm or providing copies of the messages. He used these messages to exchange business-related communications with another associated person at the firm.

Securities regulations require firms to preserve all business-related communications, including text messages. When representatives conduct business through unapproved channels, firms cannot meet their recordkeeping obligations and cannot supervise the communications for potential compliance issues.

Making matters significantly worse, during the subsequent firm investigation, Townsend falsely stated to the firm that he had not exchanged business-related text messages with another associated person. To impede the investigation further, Townsend deleted the text messages from his cell phone and asked the other associated person to delete the messages from her phone as well.

This obstruction of the firm's investigation transformed what might have been a recordkeeping violation into a much more serious matter involving dishonesty and evidence destruction.

The suspension is in effect from October 20, 2025, through October 19, 2026.

For investors, this case illustrates the importance of communication preservation requirements. If you have important communications with your broker, consider keeping your own records. Additionally, be aware that attempts by brokers to communicate through unofficial channels like personal phones may indicate they are trying to avoid oversight.

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According to FINRA, Brian Michael Moran was fined $10,000, suspended from association with any FINRA member in a Financial and Operations Principal (FINOP) capacity for three months, and required to requalify by examination before acting as a FINOP.

As his firm's FINOP, Moran was responsible for ...

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According to FINRA, Brian Michael Moran was fined $10,000, suspended from association with any FINRA member in a Financial and Operations Principal (FINOP) capacity for three months, and required to requalify by examination before acting as a FINOP.

As his firm's FINOP, Moran was responsible for calculating net capital and filing FOCUS reports. He also had authority to suspend the firm's business operations if net capital fell below required minimums.

Moran was aware that three corporate resolutions for capital contributions from the firm's parent were backdated. Despite this knowledge, he approved net capital computations based on the backdated dates rather than actual execution dates, resulting in incorrect calculations. He also prepared and filed inaccurate FOCUS reports.

Moran knew the firm was below its minimum required net capital on 45 days in amounts up to approximately $2 million, yet permitted the firm to continue conducting business. He failed to file any net capital deficiency notifications with FINRA and the SEC when initially required, only filing notifications 51 to 54 days after becoming aware of the deficiencies.

Moran also caused the firm to fail to maintain sufficient customer reserve account balances. He either failed to perform reserve calculations or performed them incorrectly by treating customer deposits awaiting clearance as debits, resulting in deficiencies up to approximately $220,000.

The suspension is in effect from November 3, 2025, through February 2, 2026.

For investors, FINOPs play a critical role in ensuring broker-dealers maintain adequate capital to protect customers. When FINOPs fail to perform their responsibilities properly, customer assets may be at risk.

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According to FINRA, Kevin N. Jenkins was suspended from association with any FINRA member in all capacities for 45 days for participating in private securities transactions without notice to his member firm and failing to properly disclose an outside business activity.

In light of Jenkins' financ...

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According to FINRA, Kevin N. Jenkins was suspended from association with any FINRA member in all capacities for 45 days for participating in private securities transactions without notice to his member firm and failing to properly disclose an outside business activity.

In light of Jenkins' financial status, no monetary sanction was imposed.

Jenkins controlled and operated a company that created and published content on social media about personal finance, economics, and investments. This content included recommendations to buy or sell specific securities. He also offered a subscription service for individualized financial advice.

From at least August 2021 to February 2023, a firm customer subscribed to this service, and Jenkins provided recommendations to buy or sell specific securities. The customer made more than 75 transactions valued at approximately $5,000 based on these recommendations.

While Jenkins orally disclosed his social media brand to the firm shortly after becoming registered, he inaccurately described it as involving only financial education, failing to disclose that it included investment recommendations. He also falsely attested on a compliance questionnaire that he had no private securities transactions or undisclosed outside business activities.

Even after the firm raised questions about his activities, Jenkins made a written disclosure but still did not reveal that his online brand included investment recommendations. He continued creating investment recommendation content until resigning.

The suspension is in effect from November 3, 2025, through December 17, 2025.

For investors, this case highlights risks when financial influencers blur the line between education and investment advice, particularly when supervised registration requirements are circumvented.

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According to FINRA, Amy Fulghum was assessed a deferred fine of $5,000 and suspended from association with any FINRA member in all capacities for six months for forging and falsifying customer signatures.

Fulghum electronically signed documents on behalf of nine customers at her member firm witho...

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According to FINRA, Amy Fulghum was assessed a deferred fine of $5,000 and suspended from association with any FINRA member in all capacities for six months for forging and falsifying customer signatures.

Fulghum electronically signed documents on behalf of nine customers at her member firm without their permission. She also electronically signed documents on behalf of 97 firm customers with their permission. The documents included required records of the firm.

While the underlying transactions were authorized and no customers complained, Fulghum had the mistaken belief that signing customer names was permissible. This belief does not excuse the violation. Signing on behalf of customers, even with permission, violates securities regulations, and signing without permission constitutes forgery.

The scale of the conduct is notable. With 106 customers affected across numerous documents, this was not an isolated incident but rather a pattern of behavior.

Customer signatures serve critical functions in the securities industry. They provide evidence that customers have reviewed and approved transactions, received required disclosures, and agreed to applicable terms. When these signatures are falsified, the integrity of the documentation process is compromised.

The suspension is in effect from October 20, 2025, through April 19, 2026.

For investors, this case reinforces the importance of personally signing all documents related to your accounts. Review documents carefully before signing and retain copies for your records. If you receive copies of signed documents you do not recall signing, contact your firm's compliance department immediately.

Never authorize a broker to sign documents on your behalf, regardless of how convenient it might seem. Your signature is your acknowledgment of the document's contents.

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According to FINRA, Brandon V. Spano was assessed a deferred fine of $5,000 and suspended from association with any FINRA member in all capacities for three months for engaging in an outside business activity without providing written notice to his member firm.

Spano entered into an agreement wit...

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According to FINRA, Brandon V. Spano was assessed a deferred fine of $5,000 and suspended from association with any FINRA member in all capacities for three months for engaging in an outside business activity without providing written notice to his member firm.

Spano entered into an agreement with a firm customer to invest in real estate. The customer provided $110,000 and Spano provided $340,000 to purchase real property with the intention of renovating and reselling it. Spano coordinated renovations using both his own labor and third-party contractors, expecting to receive a share of any resale profits.

This real estate business was outside the scope of Spano's employment with his firm, yet he failed to provide written notice of the activity as required by FINRA Rule 3270.

Compounding the violation, Spano falsely attested to the firm in annual compliance questionnaires that he had disclosed all outside business activities.

The requirement to disclose outside business activities exists for important reasons. Firms need to evaluate potential conflicts of interest, particularly when activities involve customers. The customer relationship creates dynamics that may not exist in purely arm's-length business transactions.

When a broker engages in business activities with customers outside the firm relationship, customers may not have the same protections they would have for activities conducted through the firm.

The suspension is in effect from November 3, 2025, through February 2, 2026.

For investors, be cautious about entering into business relationships with your broker outside of your brokerage account relationship. Such arrangements may not be supervised by the firm and may not be covered by investor protection mechanisms like FINRA arbitration.

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According to FINRA, Jose Luis Centeno was fined $10,000 and suspended from association with any FINRA member in all capacities for 12 months for entering false information in member firm records to reflect that he had reviewed exception reports when he had not actually reviewed them.

This matter ...

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According to FINRA, Jose Luis Centeno was fined $10,000 and suspended from association with any FINRA member in all capacities for 12 months for entering false information in member firm records to reflect that he had reviewed exception reports when he had not actually reviewed them.

This matter was decided by FINRA's National Adjudicatory Council (NAC) and has been appealed to the SEC.

Centeno frequently failed to review exception reports when they became available. He often went weeks to months without marking any such reports as reviewed. Later, he would mark reports as reviewed in batches, often at the same time or within minutes of each other.

By falsely marking reports as reviewed, Centeno incorrectly represented to his firm that he had evaluated thousands of transactions for possible manipulative trading or other violations of securities laws.

During a hearing, Centeno admitted that he falsely marked as reviewed many of the exception reports at issue and may have only reviewed a couple of them. He also admitted to previously testifying under oath that he did not review those reports, contradicting his hearing testimony.

Exception reports are a critical compliance tool used to identify potentially problematic transactions requiring supervisory review. When supervisors falsely indicate they have reviewed these reports, potential misconduct goes undetected and investors may be harmed.

The sanctions are not currently in effect pending SEC review of Centeno's appeal.

For investors, this case illustrates the importance of supervisory systems in protecting against misconduct. When supervisors fail to perform their responsibilities, violations may go undetected and uncorrected. Strong compliance cultures depend on supervisors actually performing required reviews rather than merely documenting that reviews occurred.

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According to FINRA, John E. Pelletier was fined $10,000 and suspended from association with any FINRA member in all capacities for three months for executing unauthorized transactions in a customer's retirement account.

This matter was decided by FINRA's National Adjudicatory Council (NAC), which...

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According to FINRA, John E. Pelletier was fined $10,000 and suspended from association with any FINRA member in all capacities for three months for executing unauthorized transactions in a customer's retirement account.

This matter was decided by FINRA's National Adjudicatory Council (NAC), which affirmed the findings and sanctions imposed by the Office of Hearing Officers.

Pelletier enabled distributions from a customer's retirement account at the direction of the customer's ex-wife, who was not an authorized agent on the account. Subsequently, the ex-wife nearly depleted the account by spending the funds without the customer's knowledge.

Pelletier claimed that the customer had given him oral authorization to accept the ex-wife's trade instructions. However, the NAC found that the customer did not grant blanket authorization or any other authorization for his ex-wife to trade in his account.

This case highlights the critical importance of proper authorization for account transactions. Brokers must verify that instructions come from authorized parties and must have proper documentation of any authorization. Accepting instructions from unauthorized individuals, regardless of claimed verbal authorizations, exposes customers to significant risks.

Retirement accounts deserve particular care because they often represent a customer's primary source of retirement income. Unauthorized access to these accounts can have devastating consequences.

The suspension is in effect from November 17, 2025, through February 17, 2026.

For investors, this case underscores the importance of maintaining clear records of who is authorized to access your accounts. Review account documents to verify authorized parties and contact your firm immediately if you suspect unauthorized access. For retirement accounts especially, ensure that account documents reflect your current wishes regarding beneficiaries and authorized agents.

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According to FINRA, Torch Securities, LLC had its FINRA membership cancelled pursuant to FINRA Rule 9553 for failure to pay FINRA dues, fees, and other charges.

When a broker-dealer fails to pay required regulatory dues and fees, FINRA initiates proceedings under Rule 9553 that can result in canc...

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According to FINRA, Torch Securities, LLC had its FINRA membership cancelled pursuant to FINRA Rule 9553 for failure to pay FINRA dues, fees, and other charges.

When a broker-dealer fails to pay required regulatory dues and fees, FINRA initiates proceedings under Rule 9553 that can result in cancellation of the firm's membership. Without FINRA membership, a firm cannot legally conduct securities business with the public.

Failure to pay regulatory fees may indicate financial difficulties at a firm. Firms experiencing financial distress may also have trouble meeting other regulatory obligations, including net capital requirements designed to protect customer assets.

This cancellation means that Torch Securities can no longer operate as a broker-dealer. Any registered representatives who were associated with the firm would need to associate with another FINRA member firm to continue working in the securities industry.

For investors who had accounts at Torch Securities, account assets should be transferred to another broker-dealer or returned to customers. Customers should have received notification about the firm's cancellation and instructions for handling their accounts.

If you were a customer of Torch Securities and have not received communication about your account, you should contact FINRA's Securities Helpline for Seniors or FINRA's Investor Complaint Center.

This case serves as a reminder that investors should periodically verify their broker-dealer's regulatory status. You can check a firm's status through FINRA's BrokerCheck system. If you learn that your firm has regulatory issues, consider whether it is prudent to move your account to a firm with better standing.

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