Bad Brokers

According to FINRA, Michael E. Witt was fined $5,000 and suspended for one month for causing his firm to maintain inaccurate books and records by changing representative codes for trades. Witt had joint production agreements to share commissions with two retired representatives for certain accounts....

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According to FINRA, Michael E. Witt was fined $5,000 and suspended for one month for causing his firm to maintain inaccurate books and records by changing representative codes for trades. Witt had joint production agreements to share commissions with two retired representatives for certain accounts. Although the system correctly prepopulated trades with joint codes, Witt negligently entered trades under his personal code, causing trade confirmations to show inaccurate codes. This resulted in Witt receiving higher commissions than entitled. The firm later reimbursed the retired representatives. Accurate record-keeping is essential for regulatory oversight and ensuring proper commission allocation.

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According to FINRA, Michael Scott Desando was fined $5,000 and suspended for three months for excessively and unsuitably trading in the account of a sheriff's deputy with limited investment experience. The customer relied on Desando's advice and accepted his recommendations. The trades caused the cu...

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According to FINRA, Michael Scott Desando was fined $5,000 and suspended for three months for excessively and unsuitably trading in the account of a sheriff's deputy with limited investment experience. The customer relied on Desando's advice and accepted his recommendations. The trades caused the customer to pay approximately $37,000 in commissions and trading costs. Desando's trading resulted in an annualized cost-to-equity ratio of 69%, meaning the account would have had to grow by 69% annually just to break even. The trading made it virtually impossible for the customer to realize a positive return. The customer settled an arbitration claim regarding Desando's conduct.

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According to FINRA, Conrad Kenneth Branson was fined $5,000 and suspended for 45 days for effecting unauthorized transactions in customer accounts and exercising discretionary authority without proper authorization. Branson executed unauthorized trades in accounts held by the same family without the...

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According to FINRA, Conrad Kenneth Branson was fined $5,000 and suspended for 45 days for effecting unauthorized transactions in customer accounts and exercising discretionary authority without proper authorization. Branson executed unauthorized trades in accounts held by the same family without their prior knowledge or consent. The firm compensated the family $78,919 for losses resulting from the unauthorized transactions. Branson also exercised discretionary authority in multiple customer accounts without obtaining prior written authorization and without having the accounts accepted as discretionary by the firm. Unauthorized trading violates fundamental customer protection rules and can cause significant financial harm.

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According to FINRA, Temetria Blackburn was fined $10,000 and suspended for six months for making reckless misrepresentations in an Economic Injury Disaster Loan application. Blackburn did not review program requirements or instructions before applying. She recklessly misrepresented that she owned a ...

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According to FINRA, Temetria Blackburn was fined $10,000 and suspended for six months for making reckless misrepresentations in an Economic Injury Disaster Loan application. Blackburn did not review program requirements or instructions before applying. She recklessly misrepresented that she owned a sole proprietorship with 11 employees and $20,000 in revenue. In fact, Blackburn did not operate any business eligible for the loan. Based on her misrepresentations, the SBA provided a $10,000 loan advance. Blackburn did not complete a loan agreement and has not repaid the $10,000. EIDL loans were designed to help businesses affected by COVID-19. False applications divert limited resources from legitimate businesses.

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According to FINRA, Simon Dude Granner was fined $5,000 and suspended for three months for failing to timely and fully disclose his outside business activity. Granner formed a consulting services company without providing prior written notice to his firm. When he belatedly sought approval, he failed...

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According to FINRA, Simon Dude Granner was fined $5,000 and suspended for three months for failing to timely and fully disclose his outside business activity. Granner formed a consulting services company without providing prior written notice to his firm. When he belatedly sought approval, he failed to fully disclose that he would provide financial sales coaching to firm-registered persons, activities he knew the firm would not approve because it prohibits third-party financial sales training. Granner solicited firm representatives as coaching clients, with some paying him approximately $28,000. He falsely attested in compliance questionnaires that he had completely disclosed his OBAs. Outside business disclosure requirements prevent conflicts and ensure proper supervision.

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According to FINRA, Ossama Mohamed Helal was fined $5,000 and suspended for three months for engaging in an unapproved outside business activity after his firm denied permission. Helal sought approval to work as a tax preparer but the firm denied his request. Despite knowing the denial and firm poli...

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According to FINRA, Ossama Mohamed Helal was fined $5,000 and suspended for three months for engaging in an unapproved outside business activity after his firm denied permission. Helal sought approval to work as a tax preparer but the firm denied his request. Despite knowing the denial and firm policies requiring approval, Helal worked as a tax preparer for five years, earning approximately $60,000. He made false statements in quarterly and annual compliance certifications about his OBA. Engaging in denied outside activities demonstrates willful disregard for firm policies and regulatory requirements designed to prevent conflicts of interest and ensure adequate supervision.

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According to FINRA, Christopher Stephen Perrillo was fined $5,000 and suspended for three months for willfully failing to amend his Form U4 to disclose four reportable financial events. Perrillo learned of two unsatisfied liens totaling $9,525.11 through FINRA correspondence but never amended his Fo...

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According to FINRA, Christopher Stephen Perrillo was fined $5,000 and suspended for three months for willfully failing to amend his Form U4 to disclose four reportable financial events. Perrillo learned of two unsatisfied liens totaling $9,525.11 through FINRA correspondence but never amended his Form U4. He also learned of a $355,014 civil judgment that remained outstanding for 21 months but never disclosed it. Additionally, Perrillo never amended his Form U4 to disclose a bankruptcy petition. Form U4 disclosures are critical for investor protection, allowing customers to research financial problems that may create incentives for misconduct. Willful failures to maintain accurate registration demonstrate contempt for regulatory requirements.

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According to FINRA, Kyle James Luebeck was fined $5,000 and suspended for 10 business days for improperly removing non-public personal customer information from his firm without the firm's or customers' knowledge or consent. In anticipation of joining another firm, Luebeck emailed customers' non-pub...

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According to FINRA, Kyle James Luebeck was fined $5,000 and suspended for 10 business days for improperly removing non-public personal customer information from his firm without the firm's or customers' knowledge or consent. In anticipation of joining another firm, Luebeck emailed customers' non-public information from his firm email to an outside email account he controlled. He retained this information after termination when he was not entitled to possess it. The emails contained dates of birth, social security numbers, account numbers, insurance policy numbers, tax filings, and driver's license numbers. Improper removal of customer data creates identity theft risks and violates privacy protections. Customers should be notified if their information is improperly accessed.

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According to FINRA, Miguel Angel Murillo was fined $5,000 and suspended for eight months for excessively and unsuitably trading customer accounts. Each customer relied on Murillo's advice and accepted his recommendations. Those transactions collectively caused customers to pay $101,508.10 in commiss...

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According to FINRA, Miguel Angel Murillo was fined $5,000 and suspended for eight months for excessively and unsuitably trading customer accounts. Each customer relied on Murillo's advice and accepted his recommendations. Those transactions collectively caused customers to pay $101,508.10 in commissions and other charges. Murillo's firm agreed to pay restitution equal to the commissions and trading costs as a result of his conduct. Excessive trading enriches brokers through commissions while harming customers through unnecessary costs that erode investment returns. Investors should monitor trading frequency and costs, and question activity that seems excessive relative to their investment objectives.

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According to FINRA, Charles Scott Burford appealed an OHO decision to the NAC. He was fined $10,000 and suspended for six months for executing unauthorized trades in, and facilitating unauthorized withdrawals from, his deceased customer's account. Burford did not submit the customer's death certific...

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According to FINRA, Charles Scott Burford appealed an OHO decision to the NAC. He was fined $10,000 and suspended for six months for executing unauthorized trades in, and facilitating unauthorized withdrawals from, his deceased customer's account. Burford did not submit the customer's death certificate to his firm until over 14 months after the customer's death. Prior to submitting the certificate, Burford executed unauthorized trades and facilitated withdrawals on instructions from the customer's widow. He executed sales totaling $129,972.03 and facilitated withdrawals of $84,669.87. Burford only ceased activity when he learned the deceased customer's daughter planned to contest the will. Even then, he failed to inform the firm about the improper transactions until the daughter's attorney raised potential firm liability. Trading in deceased persons' accounts is strictly prohibited and can result in disputes among heirs and beneficiaries.

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