Bad Brokers

According to FINRA, Akinfolarin Oladayo Sessi was barred from association with any FINRA member firm in all capacities after refusing to appear for on-the-record testimony.

FINRA was investigating Sessi's involvement in a business activity outside the scope of his relationship with his member fir...

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According to FINRA, Akinfolarin Oladayo Sessi was barred from association with any FINRA member firm in all capacities after refusing to appear for on-the-record testimony.

FINRA was investigating Sessi's involvement in a business activity outside the scope of his relationship with his member firm. Such outside business activities can create conflicts of interest and may expose investors to risks not covered by the broker-dealer's compliance oversight.

FINRA requested that Sessi appear and provide testimony as part of its investigation. Under FINRA Rule 8210, associated persons are required to cooperate fully with regulatory investigations, including providing testimony under oath when requested.

By refusing to testify, Sessi prevented FINRA from obtaining information necessary to evaluate whether his outside business activities violated securities rules or harmed investors. The bar is a permanent sanction that prohibits Sessi from working at any FINRA member firm in any capacity.

Outside business activities are closely regulated because they can lead to situations where representatives prioritize personal financial interests over their customers' interests. FINRA's investigations help ensure that representatives are properly disclosing these activities and that they do not create unacceptable risks for investors. When representatives refuse to cooperate with these investigations, it prevents regulators from fulfilling their investor protection mission.

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According to FINRA, Ahmad Mohamed Maklouf was barred from association with any FINRA member firm in all capacities after refusing to produce information and documents requested during an investigation.

FINRA was investigating Maklouf's outside business activities, including his potential involvem...

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According to FINRA, Ahmad Mohamed Maklouf was barred from association with any FINRA member firm in all capacities after refusing to produce information and documents requested during an investigation.

FINRA was investigating Maklouf's outside business activities, including his potential involvement in an outside investment vehicle, while he was associated with his member firm. Outside business activities and private securities transactions are closely regulated because they can create conflicts of interest and expose investors to unmonitored risks.

As part of its investigation, FINRA requested that Maklouf provide documents and information pursuant to FINRA Rule 8210. This rule requires all associated persons to cooperate with FINRA investigations by providing requested materials.

Maklouf refused to provide the requested documents and information, obstructing FINRA's ability to investigate his activities. As a consequence, FINRA imposed a permanent bar, prohibiting Maklouf from working at any FINRA member firm.

When representatives refuse to provide documents to regulators, it often raises questions about what those documents might reveal. While the bar prevents Maklouf from working in the securities industry, investors who may have been affected by his outside activities should be aware that the underlying investigation could not be completed due to his non-cooperation.

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According to FINRA, Troy Allen Orlando was barred from association with any FINRA member firm in all capacities after refusing to appear for on-the-record testimony.

FINRA's investigation arose from an examination of Orlando's member firm and focused on the suitability of certain recommendations ...

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According to FINRA, Troy Allen Orlando was barred from association with any FINRA member firm in all capacities after refusing to appear for on-the-record testimony.

FINRA's investigation arose from an examination of Orlando's member firm and focused on the suitability of certain recommendations made at the firm. Suitability investigations examine whether recommendations made to customers were appropriate given their financial situation, investment objectives, and risk tolerance.

As part of its investigation, FINRA requested that Orlando appear and provide testimony under oath. Under FINRA Rule 8210, associated persons must cooperate with FINRA investigations, including appearing for testimony when requested.

By refusing to testify, Orlando obstructed FINRA's ability to fully investigate whether unsuitable recommendations were made to customers. As a result, FINRA imposed a permanent bar, prohibiting Orlando from working in any capacity at a FINRA member firm.

Suitability violations can cause significant harm to investors who receive recommendations that are inappropriate for their circumstances. When representatives refuse to cooperate with suitability investigations, it prevents regulators from determining the full extent of any violations and potentially identifying affected customers. Investors who worked with Orlando and have concerns about recommendations they received should consider consulting with a securities attorney about their options.

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According to FINRA, Christopher Bailey was barred from association with any FINRA member firm in all capacities after failing to provide documents requested during an investigation.

FINRA was investigating allegations made on a Form U5 filed by Bailey's former member firm. The Form U5 indicated t...

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According to FINRA, Christopher Bailey was barred from association with any FINRA member firm in all capacities after failing to provide documents requested during an investigation.

FINRA was investigating allegations made on a Form U5 filed by Bailey's former member firm. The Form U5 indicated that Bailey was discharged in connection with an investigation regarding certain life insurance sales practices, including a pattern of incorrect bank account information for premium payments and receipt of advance commissions.

While Bailey produced some documents and information in response to FINRA's requests, he failed to produce other requested documents, including bank statements. Bailey acknowledged receiving the requests but stated he would not produce the additional documents at any time.

Under FINRA Rule 8210, associated persons must provide all requested documents to FINRA during investigations. Partial compliance is not sufficient. By refusing to provide the bank statements and other requested documents, Bailey obstructed FINRA's ability to fully investigate the allegations regarding his life insurance sales practices.

The bar permanently prohibits Bailey from working at any FINRA member firm. This case illustrates that FINRA will impose serious consequences when individuals refuse to fully cooperate with investigations, regardless of whether they provide some documents. Investors who purchased life insurance products from Bailey may want to review their accounts for any irregularities.

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According to FINRA, Jared R. Bon was barred from association with any FINRA member firm in all capacities after falsely claiming to have passed the Series 7 exam and submitting falsified documents to his firm.

The Series 7 General Securities Representative Qualification exam is required for indiv...

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According to FINRA, Jared R. Bon was barred from association with any FINRA member firm in all capacities after falsely claiming to have passed the Series 7 exam and submitting falsified documents to his firm.

The Series 7 General Securities Representative Qualification exam is required for individuals to be licensed to sell securities products. Passing this exam demonstrates that an individual has the basic knowledge necessary to work as a registered representative.

Bon falsely told his supervisor that he had passed the Series 7 exam and submitted an altered document to the firm reflecting that he had passed when he had not. When the firm was unable to verify this information, Bon provided an additional falsified document, a fictitious email purportedly from the testing center, falsely showing he had been scheduled to take the exam when he had not.

This conduct constituted a serious violation of FINRA rules prohibiting dishonesty and falsification of records. By fabricating exam results, Bon attempted to deceive his firm into allowing him to work as a registered representative without the required qualifications.

The bar permanently prohibits Bon from working at any FINRA member firm. This case demonstrates that attempts to circumvent licensing requirements through fraud will result in permanent exclusion from the securities industry. Investors can verify their representatives' qualifications and exam history through FINRA's BrokerCheck tool.

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According to FINRA, Rachel Katherine Chapman was barred from association with any FINRA member firm in all capacities after refusing to appear for on-the-record testimony.

FINRA was investigating Chapman's member firm's determination that she misused a corporate card. Corporate card misuse can ra...

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According to FINRA, Rachel Katherine Chapman was barred from association with any FINRA member firm in all capacities after refusing to appear for on-the-record testimony.

FINRA was investigating Chapman's member firm's determination that she misused a corporate card. Corporate card misuse can range from minor policy violations to serious misconduct involving misappropriation of firm funds.

As part of its investigation, FINRA requested that Chapman appear and provide testimony under oath. Under FINRA Rule 8210, associated persons are required to cooperate with FINRA investigations, including appearing for testimony when requested.

By refusing to testify, Chapman prevented FINRA from fully investigating the circumstances surrounding the corporate card allegations. As a result, FINRA imposed a permanent bar, prohibiting Chapman from working in any capacity at a FINRA member firm.

While the details of the alleged corporate card misuse were not fully established due to Chapman's refusal to cooperate, the bar ensures that she cannot return to the securities industry without first addressing her failure to comply with regulatory requirements. This case illustrates that refusing to cooperate with a FINRA investigation carries serious consequences regardless of the underlying allegations being investigated.

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According to FINRA, Ceondre LaQuan Colvin was barred from association with any FINRA member firm in all capacities after refusing to provide documents and information and refusing to appear for on-the-record testimony.

FINRA was investigating a customer complaint filed against Colvin. According t...

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According to FINRA, Ceondre LaQuan Colvin was barred from association with any FINRA member firm in all capacities after refusing to provide documents and information and refusing to appear for on-the-record testimony.

FINRA was investigating a customer complaint filed against Colvin. According to the findings, Colvin was discharged from his member firm after a review found, among other things, that he made unauthorized withdrawals from two customers' bank accounts to pay for his personal expenses.

When FINRA requested documents and information and sought testimony regarding these allegations, Colvin refused to comply. Under FINRA Rule 8210, associated persons must cooperate with investigations by providing requested materials and appearing for testimony.

The allegation of unauthorized withdrawals from customer bank accounts is extremely serious, potentially constituting conversion or theft of customer funds. By refusing to cooperate with the investigation, Colvin prevented FINRA from fully examining these allegations.

The bar permanently prohibits Colvin from working at any FINRA member firm. Customers who may have been affected by unauthorized withdrawals should be aware that while Colvin has been removed from the industry, they may have additional remedies available through FINRA arbitration or other legal proceedings. Investors should regularly review their account statements for any unauthorized transactions and report suspicious activity immediately.

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According to FINRA, Arnold Frank Feldman was fined $5,000 and suspended from association with any FINRA member firm for one month for falsely certifying completion of continuing education requirements.

Feldman certified to the State of New York that he had personally completed 15 hours of continu...

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According to FINRA, Arnold Frank Feldman was fined $5,000 and suspended from association with any FINRA member firm for one month for falsely certifying completion of continuing education requirements.

Feldman certified to the State of New York that he had personally completed 15 hours of continuing education required to renew his state insurance license. In reality, another person completed that continuing education on his behalf.

Continuing education requirements exist to ensure that financial professionals maintain current knowledge of regulations, products, and best practices. When professionals have others complete their required training, it undermines the purpose of these requirements and means the professional may lack knowledge they should have.

By falsely certifying that he completed the training himself, Feldman made a material misrepresentation to regulators. This conduct violates FINRA rules requiring honesty and integrity in dealings with regulators.

The one-month suspension has already been served. While this sanction is less severe than the bars imposed for refusing to cooperate with investigations, it still reflects FINRA's view that dishonesty regarding compliance requirements is a serious matter.

Investors should be aware that their financial professionals are required to complete ongoing education. This case is one of several in January 2025 involving representatives who had others complete their continuing education, suggesting this may be a more widespread problem that warrants attention.

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According to FINRA, Lisa Marjorie Jones was fined $5,000 and suspended from association with any FINRA member firm for two months for engaging in an undisclosed outside business activity.

Jones had disclosed to her firm that she created an LLC to operate an e-commerce storefront and used services...

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According to FINRA, Lisa Marjorie Jones was fined $5,000 and suspended from association with any FINRA member firm for two months for engaging in an undisclosed outside business activity.

Jones had disclosed to her firm that she created an LLC to operate an e-commerce storefront and used services from a company owned by three other firm representatives to manage it. However, she failed to disclose that she subsequently began referring other representatives to this company in exchange for referral fees.

Between August 2021 and February 2023, without informing her firm, Jones told other representatives about the services and received at least $16,000 in referral fees for successfully referring five representatives to the company. During this same period, Jones affirmed on annual compliance questionnaires that she had completely and accurately disclosed her outside business activities, when she had not disclosed the referral fee arrangement.

FINRA rules require representatives to provide written notice of all outside business activities so firms can evaluate potential conflicts of interest and determine whether additional supervision is needed. Making false statements on compliance questionnaires compounds the violation.

This case illustrates that disclosure obligations extend beyond the initial activity. When an outside business evolves to include new compensation arrangements, those changes must also be disclosed. The two-month suspension reflects the seriousness of both the undisclosed activity and the false compliance certifications.

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According to FINRA, Jared Jayson Berrios was fined $5,000 and suspended from association with any FINRA member firm for one month for falsely certifying completion of continuing education requirements.

Berrios certified to the State of New York that he had personally completed 15 hours of continu...

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According to FINRA, Jared Jayson Berrios was fined $5,000 and suspended from association with any FINRA member firm for one month for falsely certifying completion of continuing education requirements.

Berrios certified to the State of New York that he had personally completed 15 hours of continuing education required to renew his state insurance license. However, another person actually completed that continuing education on his behalf.

This is the second case in the January 2025 enforcement actions involving a New York representative who had someone else complete their insurance continuing education. Continuing education is designed to ensure that licensed professionals maintain current knowledge of products, regulations, and ethical requirements. When professionals circumvent these requirements, they may lack knowledge that is important for serving their customers properly.

The false certification to the state regulatory authority also represents a violation of honesty and integrity standards that FINRA members must uphold. Financial professionals are expected to be truthful in their dealings with regulators.

The one-month suspension was served from December 2, 2024, through January 1, 2025. While a one-month suspension may seem brief, it still represents a significant sanction that appears on the representative's permanent regulatory record and is visible through BrokerCheck.

Investors should expect their financial professionals to take their educational requirements seriously and maintain current knowledge in their field.

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