Bad Brokers

According to FINRA, Nana Kwame Kwakye-Bissah was permanently barred from association with any FINRA member firm in January 2026, following a FINRA Office of Hearing Officers (OHO) decision that became final. The sanction was based on findings that Kwakye-Bissah failed to respond to FINRA requests fo...

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According to FINRA, Nana Kwame Kwakye-Bissah was permanently barred from association with any FINRA member firm in January 2026, following a FINRA Office of Hearing Officers (OHO) decision that became final. The sanction was based on findings that Kwakye-Bissah failed to respond to FINRA requests for documents and information as part of an investigation into his member firm's Form U5 disclosures upon his departure.According to the Form U5 filed by the firm, Kwakye-Bissah was discharged for a series of serious violations of firm policy: he opened a credit union account using a customer's personal information without the customer's knowledge or approval; he submitted an electronic distribution request containing a non-genuine (forged) signature in violation of firm policy; and he facilitated an electronic distribution without customer approval, again in violation of firm policy. These actions, if true, represent a significant breach of the trust customers place in their financial advisors and the firms that employ them.Rather than cooperating with FINRA's subsequent investigation into these matters, Kwakye-Bissah failed to respond to FINRA's requests for documents and information. Under FINRA Rule 8210, all registered persons are required to cooperate with FINRA's regulatory oversight, including responding to requests for information. This refusal to cooperate resulted in a permanent industry bar.For investors, this case highlights the serious harm that can result when a financial professional misuses a customer's personal information. Unauthorized use of customer information to open accounts, forge signatures, or facilitate unauthorized transactions constitutes identity theft and a fundamental breach of fiduciary duty. Investors should regularly monitor all accounts associated with their name, review account statements carefully for any unauthorized activity, and promptly report suspicious transactions to their brokerage firm's compliance department or to FINRA. Investors can also verify a broker's regulatory history—including any disclosure events such as terminations—through FINRA BrokerCheck.

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According to FINRA, Jay Deron Zornes was permanently barred from association with any FINRA member firm in January 2026, after refusing to provide information, documents, or on-the-record testimony in connection with a FINRA investigation into whether he used unapproved communication channels to com...

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According to FINRA, Jay Deron Zornes was permanently barred from association with any FINRA member firm in January 2026, after refusing to provide information, documents, or on-the-record testimony in connection with a FINRA investigation into whether he used unapproved communication channels to communicate with customers of his member firm.The investigation was initiated by FINRA following a Form U5 filed by Zornes' member firm. The Form U5 indicated that Zornes was permitted to resign from the firm while under internal investigation for using unapproved email addresses and an unapproved text messaging number to communicate with clients. The use of unapproved communication channels is a significant compliance concern because it prevents firms from monitoring, reviewing, and preserving business-related communications as required by FINRA rules and federal securities laws. When brokers conduct client business through personal email or text accounts that bypass firm systems, important conversations may go unmonitored and unpreserved, limiting both supervisory oversight and customer protections.Rather than cooperating with FINRA's follow-up investigation into these circumstances, Zornes refused to provide the requested information and documentation and declined to appear for testimony. Under FINRA Rule 8210, all registered persons are obligated to cooperate with FINRA's regulatory oversight. Failure to do so is itself a violation that typically results in a permanent bar from the industry—which is the outcome here.For investors, this case is a reminder that brokers who conduct business through unofficial channels may be operating outside the firm's supervisory framework. If your broker communicates with you primarily through personal email, text, or messaging apps, important conversations may not be preserved or reviewed by compliance personnel. Investors should encourage their brokers to use firm-approved communication channels and should report any concerns about off-channel communications to the firm's compliance department. FINRA BrokerCheck allows investors to verify a broker's regulatory and employment history before or during a professional relationship.

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According to FINRA, James Thaddeus Walesa was permanently barred from association with any FINRA member firm in January 2026, after failing to respond to two FINRA requests to provide information and documents and two separate requests to appear for on-the-record testimony in connection with a regul...

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According to FINRA, James Thaddeus Walesa was permanently barred from association with any FINRA member firm in January 2026, after failing to respond to two FINRA requests to provide information and documents and two separate requests to appear for on-the-record testimony in connection with a regulatory investigation into potential sales practice violations and undisclosed private securities transactions.FINRA's investigation originated from a Statement of Claim filed against Walesa, which raised questions about whether he committed sales practice violations and whether he participated in private securities transactions without disclosing them to his member firm—as required by FINRA rules. FINRA sought information and testimony related to, among other things, Walesa's activities with two outside companies (a company that sold senior care products and a healthcare and wellness company), his activities with respect to other investments, and his recommendations to an elderly customer, her daughter, and other customers.Walesa failed to produce any documents or information in response to any of FINRA's requests, and he did not appear for testimony in response to two separate requests. His refusal to cooperate materially impeded FINRA's ability to investigate potential misconduct that could directly affect vulnerable investors—including the elderly customer mentioned in the investigation. Under FINRA Rule 8210, cooperation with FINRA's regulatory process is a fundamental obligation of all registered persons. Refusal to comply results in a permanent bar, which is the outcome here.For investors, this case serves as a cautionary example of why it matters when a broker engages in undisclosed outside business activities. Private securities transactions and outside business activities that go unreported to a broker's firm are a common vehicle for investment fraud—particularly targeting elderly and other vulnerable investors. Investors should ask their broker whether he or she has any outside business activities or investments beyond those offered by the firm, and should check FINRA BrokerCheck for any disclosed complaints, terminations, or regulatory actions.

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According to FINRA, Hugo Hernandez was permanently barred from association with any FINRA member firm in January 2026, after refusing to appear for on-the-record testimony requested by FINRA in connection with an investigation into a range of potential misconduct, including whether he failed to retu...

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According to FINRA, Hugo Hernandez was permanently barred from association with any FINRA member firm in January 2026, after refusing to appear for on-the-record testimony requested by FINRA in connection with an investigation into a range of potential misconduct, including whether he failed to return investment funds to customers, engaged in undisclosed private securities transactions and outside business activities, or borrowed money from customers in violation of FINRA rules.Borrowing money from customers, engaging in private securities transactions outside the firm's knowledge, and failing to return customer investment funds are serious violations that can cause direct financial harm to investors. FINRA rules prohibit registered representatives from borrowing money from customers except in very limited, specific circumstances, and require that private securities transactions and outside business activities be disclosed to and approved by the member firm in advance. When these activities go undisclosed, they fall outside the firm's supervisory framework, leaving customers without important protections.Hernandez refused to appear for the on-the-record testimony that FINRA requested in connection with its investigation into these potential violations. Under FINRA Rule 8210, all registered persons are required to cooperate with FINRA's regulatory process, including appearing for testimony when requested. His refusal constituted an independent violation of FINRA rules and resulted in a permanent industry bar.For investors, this case highlights several red flags to watch for: any request from a broker to borrow money, any suggestion to invest in opportunities outside the firm's normal account structure, or any difficulty obtaining a prompt return of investment funds should be treated as serious warning signs. Investors should report such concerns to the firm's compliance department and to FINRA, and should verify the regulatory history of any broker through FINRA BrokerCheck before entering into a financial relationship.

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According to FINRA, Lyhen Fiallo was permanently barred from association with any FINRA member firm in January 2026, after refusing to provide documents and information requested by FINRA as part of an investigation into her potential involvement with borrowing from a securities customer.FINRA rules...

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According to FINRA, Lyhen Fiallo was permanently barred from association with any FINRA member firm in January 2026, after refusing to provide documents and information requested by FINRA as part of an investigation into her potential involvement with borrowing from a securities customer.FINRA rules strictly limit the circumstances under which registered representatives may borrow money from customers. Under FINRA Rule 3240, borrowing from a customer is generally prohibited unless the customer is an immediate family member, a financial institution in the business of lending money, or the customer's employer—and even in those cases, borrowing is typically subject to firm approval and disclosure requirements. When a registered representative borrows from a customer outside these permitted circumstances, it creates a serious conflict of interest and can directly harm the customer financially.Rather than cooperating with FINRA's investigation into whether she borrowed from a customer in violation of these rules, Fiallo refused to provide the documents and information FINRA requested. Under FINRA Rule 8210, all registered persons are required to respond to FINRA's information requests as part of its regulatory oversight function. Refusal to cooperate with a Rule 8210 request is itself a violation of FINRA rules and typically results in a permanent bar from the securities industry—which is the sanction imposed here.For investors, this case is a reminder to be cautious if a broker ever asks to borrow money from you. Such requests should immediately be reported to the firm's compliance department. Investor funds and personal relationships with brokers should be kept entirely separate—any blurring of that line is a significant red flag. Investors can check whether a broker has any prior disciplinary history, complaints, or terminations on FINRA BrokerCheck before and during any professional relationship.

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According to FINRA, William Joseph Kielczewski was fined $50,000, suspended from association with any FINRA member firm in all capacities for 18 months, and required to requalify by examination as a registered representative before reassociating with any member firm, following proceedings that were ...

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According to FINRA, William Joseph Kielczewski was fined $50,000, suspended from association with any FINRA member firm in all capacities for 18 months, and required to requalify by examination as a registered representative before reassociating with any member firm, following proceedings that were sustained by the SEC and then appealed to the U.S. Court of Appeals for the District of Columbia Circuit. Note that the sanctions are not in effect pending that review. The findings that supported these sanctions are serious and illustrate multiple layers of misconduct involving undisclosed investment activities and false regulatory disclosures.FINRA found that Kielczewski participated in undisclosed private securities transactions without providing prior written notice to his member firm, as required by FINRA rules. The transactions totaled more than $6 million. He also made false statements on firm compliance questionnaires, representing that he had not engaged in any private securities transactions while employed with the firm—despite participating in transactions totaling more than $6 million.Kielczewski was also actively involved in operating a hedge fund, which he created and in which he solicited several of his customers to invest, participating in more than $10 million in fund investments. He described himself to his firm as a silent minority partner with only a passive role, when in fact he was a principal operator of the fund and had recruited his own customers into it. Wilfully caused his employer firm to file an inaccurate initial Form U4 and four misleading Form U4 amendments regarding his involvement in the hedge fund.Form U4 is the primary registration document used in the securities industry to disclose broker background and outside activities to regulators and, through BrokerCheck, to the public. Filing inaccurate Form U4 information deprives investors of material facts they need to evaluate their broker's activities and potential conflicts of interest.For investors, this case underscores the importance of checking FINRA BrokerCheck for complete disclosure information. It also illustrates that brokers who manage outside funds while working for a member firm present serious undisclosed conflicts of interest—particularly when they solicit their own customers to invest in those funds. Investors should always ask their broker about outside investment activities and verify that all such activities are fully disclosed.

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According to FINRA, Andrew Stephen Mogol was assessed a deferred fine of $5,000 and suspended from association with any FINRA member firm in all capacities for six months, effective January 20, 2026 through July 19, 2026, for initiating electronic transfers totaling approximately $85,000 from his pe...

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According to FINRA, Andrew Stephen Mogol was assessed a deferred fine of $5,000 and suspended from association with any FINRA member firm in all capacities for six months, effective January 20, 2026 through July 19, 2026, for initiating electronic transfers totaling approximately $85,000 from his personal bank account to his firm brokerage account while knowing that his bank account lacked sufficient funds to cover the transfers.FINRA found that Mogol made these transfers knowing there were insufficient funds in his bank account to support them. He then used the funds credited to his brokerage account—before the transfers were reversed due to insufficient funds—essentially floating an unauthorized short-term loan from his firm. When the transfers were reversed, Mogol deposited sufficient funds to cover the outstanding balances, so neither his bank nor his member firm ultimately incurred any financial losses.This type of conduct, sometimes called check-kiting or float manipulation, exploits the temporary credit provided during the electronic funds transfer process. Even when no ultimate financial loss results, deliberately initiating transfers known to be unsupported by sufficient funds undermines the integrity of the financial system and violates FINRA's standards requiring members to observe high commercial standards and just and equitable principles of trade.The deferred nature of the fine reflects FINRA's consideration of the fact that no parties ultimately suffered a financial loss, and that Mogol resolved the situation upon discovery. However, the six-month suspension signals that such conduct—even without lasting financial harm—is treated seriously by regulators because it involves intentional manipulation of the settlement system.For investors, this case is a reminder that the securities industry is built on trust and accurate dealing. Brokers who manipulate financial processes—even temporarily and without lasting harm—demonstrate a willingness to bend the rules in ways that investors should find concerning. Checking FINRA BrokerCheck before working with a registered representative can reveal any prior disciplinary history or concerning patterns of conduct.

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According to FINRA, Eduardo Leon Jr. was fined $5,000 and suspended from association with any FINRA member firm in all capacities for two months, effective February 2 through April 1, 2026, for borrowing a total of $750,000 from one of his securities customers without notifying or obtaining approval...

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According to FINRA, Eduardo Leon Jr. was fined $5,000 and suspended from association with any FINRA member firm in all capacities for two months, effective February 2 through April 1, 2026, for borrowing a total of $750,000 from one of his securities customers without notifying or obtaining approval from his member firm—and without documenting the loans or repaying any portion of either amount.FINRA found that Leon borrowed $250,000 from a securities customer in August 2017, following damage to his home caused by Hurricane Harvey. The customer was a wealthy individual who had been Leon's personal friend for approximately 25 years. In September 2022, Leon borrowed an additional $500,000 from the same customer. Neither loan was reduced to writing, and as of the time of the FINRA action, Leon had not repaid any portion of either loan—for a total outstanding balance of $750,000.Leon's firm discovered the loans in April 2025 and disciplined him internally by suspending him for one month and requiring him to forfeit two months' commissions. FINRA's action added a separate regulatory fine and suspension on top of the firm's internal discipline.FINRA Rule 3240 generally prohibits registered representatives from borrowing money from customers unless very specific conditions are met—such as the customer being an immediate family member or a financial institution in the business of lending. Even in permitted circumstances, firms typically require prior written notice and approval. Leon neither sought approval from nor notified his firm about either loan. The lack of documentation further compounded the violation by making the arrangements impossible to verify or monitor.For investors, this case illustrates a serious and recurring problem in the securities industry: brokers who blend personal financial relationships with customer relationships. A broker who borrows money from a client—especially undocumented amounts—creates a direct conflict of interest that can affect investment recommendations and damage customer trust. Investors should never lend money to their broker, and should report any such request immediately to the firm's compliance department and to FINRA.

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According to FINRA, Jonathon Mark Webster was suspended from association with any FINRA member firm in all capacities for seven months, effective February 2 through September 1, 2026, for willfully violating the Care Obligation of Regulation Best Interest (Reg BI) by recommending a short-term tradin...

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According to FINRA, Jonathon Mark Webster was suspended from association with any FINRA member firm in all capacities for seven months, effective February 2 through September 1, 2026, for willfully violating the Care Obligation of Regulation Best Interest (Reg BI) by recommending a short-term trading strategy to 19 retail customers—at least 13 of whom were seniors—that resulted in $121,725.58 in unnecessary commissions that the customers would not have paid had Webster used their existing advisory accounts instead.FINRA found that Webster recommended that his customers implement a short-term stock-buying strategy through commission-based brokerage accounts, even though each of those customers already maintained fee-based advisory accounts with the same firm at a lower comparative cost. Reg BI's Care Obligation requires registered representatives to consider costs when making recommendations and to act in the customer's best interest—not to recommend a course of action that generates avoidable commissions while a lower-cost alternative already exists.By using the commission-based brokerage accounts rather than the existing advisory accounts, Webster's customers collectively paid $121,725.58 in commissions they would not have owed had the trades been executed through their advisory accounts. Webster's member firm ultimately identified the misconduct, refunded all commissions to the affected customers, and rebilled the trades to their advisory accounts. As a result, customers did not ultimately pay any unnecessary charges, and Webster did not retain any of the commissions at issue. No monetary sanctions were imposed on Webster given that he was granted a discharge in bankruptcy.For investors, this case is an important reminder that Reg BI requires brokers to consider not just whether an investment is appropriate, but whether the account type or fee structure used for that investment serves the customer's best interests. Customers who maintain both brokerage and advisory accounts should discuss with their broker which account is most appropriate for each type of transaction. Any recommendation to trade in a commission-based account when a lower-cost alternative exists should prompt careful scrutiny. Seniors are particularly vulnerable to such strategies and should ask their broker to explain all applicable costs before executing trades.

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According to FINRA, Robert Wylie Goff was assessed a deferred fine of $5,000 and suspended from association with any FINRA member firm in all capacities for one month, effective February 2 through March 1, 2026, for exercising unauthorized discretion in customer accounts without written authorizatio...

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According to FINRA, Robert Wylie Goff was assessed a deferred fine of $5,000 and suspended from association with any FINRA member firm in all capacities for one month, effective February 2 through March 1, 2026, for exercising unauthorized discretion in customer accounts without written authorization and for falsely certifying in an annual compliance questionnaire that he had not done so.FINRA found that Goff effected 46 trades in 12 different customer accounts without first speaking with the customers on the date of each transaction before executing the trades. The customers understood that Goff was exercising discretion in their accounts—but neither the customers nor the firm had provided the written authorization required under FINRA rules for a registered representative to exercise discretionary trading authority. Goff's exercise of discretion went beyond permissible time-and-price discretion: he made decisions about which specific securities to purchase or sell, and in what amounts, without obtaining prior customer approval for each transaction.Discretionary trading authority is a significant responsibility. FINRA Rule 4512 and related rules require that discretionary account authority be evidenced in writing by the customer and that the firm formally accept the account as discretionary before any such trading can occur. These requirements exist to protect investors from unauthorized trading in their accounts and to ensure that customers retain meaningful control over their investment decisions.Compounding the violation, Goff falsely stated in his annual compliance questionnaire submitted to his member firm that he had not exercised discretion in customer accounts. False compliance certifications undermine the firm's ability to identify and address violations through its supervisory program.For investors, this case is a reminder that discretionary trading authority over your account must be explicitly authorized in writing—both by you and by your firm. If you discover that your broker has been making trades in your account without your prior approval, report this immediately to the firm's compliance department and to FINRA. Regularly reviewing your account statements for unexpected transactions is one of the most effective ways to detect unauthorized trading.

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