Bad Brokers

According to FINRA, Brett Allen Rutherford has been barred from association with any FINRA member firm in all capacities for failing to provide documents and information requested by FINRA.

The investigation concerned the circumstances giving rise to a customer arbitration. Customer arbitration i...

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According to FINRA, Brett Allen Rutherford has been barred from association with any FINRA member firm in all capacities for failing to provide documents and information requested by FINRA.

The investigation concerned the circumstances giving rise to a customer arbitration. Customer arbitration is the primary forum for resolving disputes between investors and their brokers or brokerage firms. When a customer files an arbitration claim, it indicates allegations of misconduct that the customer believes caused financial harm.

FINRA investigates matters that give rise to customer arbitrations to determine whether regulatory violations occurred that warrant disciplinary action beyond any compensation the customer might receive in arbitration. These investigations help identify patterns of misconduct and protect other investors.

By refusing to cooperate with FINRA's investigation, Rutherford received a permanent bar from the securities industry. This sanction is automatic when a registered person fails to provide requested information, as cooperation with regulatory inquiries is a fundamental obligation of industry participants.

What Investors Can Learn: Investors who have disputes with their brokers have access to FINRA's arbitration process to seek compensation. The existence of an arbitration claim against a broker is disclosed on FINRA BrokerCheck and can provide useful information when evaluating a financial professional. Even if a matter is resolved in arbitration, FINRA may separately investigate and take disciplinary action.

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According to FINRA, Justin Ray Deiter has been suspended from association with any FINRA member firm for six months for willfully violating Regulation Best Interest (Reg BI).

Deiter recommended to two retail customers a series of trades that were excessive and not in the customers' best interest....

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According to FINRA, Justin Ray Deiter has been suspended from association with any FINRA member firm for six months for willfully violating Regulation Best Interest (Reg BI).

Deiter recommended to two retail customers a series of trades that were excessive and not in the customers' best interest. One of the customers was an 89-year-old retiree. The trading resulted in high turnover rates and cost-to-equity ratios that exceeded the traditional guideposts of six and 20 percent—standard metrics used to identify excessive trading.

In the first customer's account, Deiter's recommended transactions generated $19,792 in commissions and caused $25,291 in realized losses. In the elderly customer's account, trading generated $28,264 in commissions and caused $33,363 in realized losses.

Excessive trading, also known as churning, occurs when a broker engages in excessive buying and selling in a customer's account primarily to generate commissions rather than to benefit the customer. This practice is particularly concerning when it involves elderly or vulnerable investors who may not fully understand the activity in their accounts.

Due to Deiter's financial status, no monetary sanction was imposed. The suspension runs from February 18, 2025, through August 17, 2025.

What Investors Can Learn: Watch for warning signs of excessive trading: frequent transactions, high commission charges relative to account value, and losses despite active trading. Elderly investors and their families should be particularly vigilant. Review account statements carefully and question any trading activity that seems unnecessary.

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According to FINRA, Justin Casey Funakura has been assessed a deferred fine of $10,000, suspended for six months, and ordered to pay deferred disgorgement of $4,000 plus interest for participating in private securities transactions without required approvals.

Funakura solicited investors to inves...

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According to FINRA, Justin Casey Funakura has been assessed a deferred fine of $10,000, suspended for six months, and ordered to pay deferred disgorgement of $4,000 plus interest for participating in private securities transactions without required approvals.

Funakura solicited investors to invest a total of $120,000 in promissory notes issued by a company claiming to operate crypto asset mining and investment programs. He did so without providing prior written notice to, or obtaining approval from, his member firm. One of the investors was a customer of the firm.

Funakura's involvement included introducing investors to the investment opportunity, providing information about funds offered by the company, and facilitating transactions. He received $4,000 as a commission for soliciting these investments. The company later defaulted on the notes.

Subsequently, the State of Illinois Securities Department issued a Final Order of Prohibition against the company, finding that the company and related individuals committed fraud in the offer and sale of securities.

Funakura also falsely answered "no" on annual compliance questionnaires when asked whether he had engaged in private securities transactions or received compensation for transactions outside of the firm.

The suspension runs from March 3, 2025, through September 2, 2025.

What Investors Can Learn: Be cautious of investment opportunities offered outside normal brokerage channels. Private securities transactions may lack the regulatory protections and firm oversight that apply to regular brokerage transactions. Crypto-related investments require particular scrutiny given the prevalence of fraud in this space.

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According to FINRA, Stephen E. Trask has been assessed a deferred fine of $5,000 and suspended for 30 days for exercising discretionary authority in customer accounts without proper authorization.

Trask entered stop-loss orders in customer accounts without having prior written authorization from ...

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According to FINRA, Stephen E. Trask has been assessed a deferred fine of $5,000 and suspended for 30 days for exercising discretionary authority in customer accounts without proper authorization.

Trask entered stop-loss orders in customer accounts without having prior written authorization from the customers to exercise discretion. His member firm prohibited representatives from exercising discretionary authority in accounts and had not accepted the customers' accounts as discretionary.

Discretionary trading authority allows a broker to make investment decisions on behalf of a customer without obtaining specific approval for each transaction. Because of the significant trust this requires, securities regulations require that discretionary authority be granted in writing and that the firm specifically approve the account for discretionary trading.

Stop-loss orders are designed to limit losses by automatically selling a security when it reaches a specified price. While often beneficial, placing such orders without customer authorization constitutes exercising discretion because the broker is making decisions about when and at what price to sell customer securities.

The suspension was in effect from March 3, 2025, through April 1, 2025.

What Investors Can Learn: Investors should understand whether their accounts are discretionary or non-discretionary. In a non-discretionary account, brokers must obtain your approval before executing trades. If you notice trades you did not specifically authorize, contact your broker and the firm's compliance department.

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According to FINRA, Kayla Holeman has been assessed a deferred fine of $5,000 and suspended for 45 days for causing her member firm to maintain inaccurate books and records by forging customer electronic signatures without permission.

Holeman forged four customers' electronic signatures on docume...

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According to FINRA, Kayla Holeman has been assessed a deferred fine of $5,000 and suspended for 45 days for causing her member firm to maintain inaccurate books and records by forging customer electronic signatures without permission.

Holeman forged four customers' electronic signatures on documents without their prior permission. One of the forms related to the opening of a securities account, which is a required book and record of the firm.

The findings noted that the transactions at issue were authorized and no customers complained. However, forging signatures—even on documents for authorized transactions—is a serious violation because it undermines the integrity of documentation that firms are required to maintain and that regulators rely upon during examinations.

Electronic signatures carry the same legal weight as handwritten signatures. When representatives forge electronic signatures, they create falsified records that misrepresent customer consent and can make it difficult to later determine what customers actually authorized.

The suspension runs from March 3, 2025, through April 16, 2025.

What Investors Can Learn: Review all documents you receive from your broker-dealer to ensure they accurately reflect your signatures and authorizations. If you notice discrepancies or documents you did not sign, report them immediately to the firm's compliance department and consider filing a complaint with FINRA.

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According to FINRA, Michael Louis Miro has been fined $5,000 and suspended for three months for engaging in an outside business activity (OBA) without providing prior written notice to his member firm.

Before registering with his firm in April 2022, Miro began consulting full-time for a financial...

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According to FINRA, Michael Louis Miro has been fined $5,000 and suspended for three months for engaging in an outside business activity (OBA) without providing prior written notice to his member firm.

Before registering with his firm in April 2022, Miro began consulting full-time for a financial technology provider. Under his consulting contract, he agreed to provide approximately 40 hours of operational support each week to assist with a trading data migration project.

After registering with his firm, Miro continued to provide full-time operational support to the financial technology provider until at least May 2023. During this period, he received at least $160,000 in compensation for his consulting services.

Miro did not notify or seek approval from his firm before engaging in these activities. In his onboarding questionnaire, he falsely stated that he was not currently engaged in any other business. In an annual compliance certification, he falsely attested that he was not engaged in any undisclosed outside business activities.

FINRA rules require registered representatives to disclose outside business activities so firms can evaluate potential conflicts of interest and ensure proper supervision. A 40-hour per week outside commitment is particularly significant as it could affect the representative's ability to serve customers.

The suspension runs from March 17, 2025, through June 16, 2025.

What Investors Can Learn: When selecting a financial professional, consider how much of their time and attention is dedicated to serving clients. Outside business activities, while not prohibited, should be disclosed so investors can make informed decisions.

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According to FINRA, Ana Maria Dimco has been named a respondent in a FINRA complaint alleging that she improperly used her member firm's funds to make personal purchases.

Dimco is accused of incurring $20,157.92 in charges on a corporate card issued to her for personal expenditures, in violation ...

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According to FINRA, Ana Maria Dimco has been named a respondent in a FINRA complaint alleging that she improperly used her member firm's funds to make personal purchases.

Dimco is accused of incurring $20,157.92 in charges on a corporate card issued to her for personal expenditures, in violation of firm policy. The alleged personal purchases included clothing, travel, a laptop, medical and beauty treatments, and other personal expenses, many made while on approved medical leave from the firm.

The firm requested that Dimco repay the personal charges, which she allegedly failed to do. Because the firm retained financial responsibility for the corporate card, it paid the outstanding balance and withheld $4,964.26 from Dimco's last paycheck to offset part of the cost.

The complaint also alleges that Dimco failed to provide information and documents requested by FINRA as part of its investigation into her unauthorized use of firm funds and a possible failure to disclose an outside business activity. Her failure to respond allegedly impeded FINRA's investigation.

It is important to note that the filing of a complaint represents the initiation of a formal proceeding. Findings as to the allegations have not been made, and this does not represent a decision as to any of the allegations.

What Investors Can Learn: While this matter involves internal firm funds rather than customer assets, misuse of firm resources raises concerns about integrity. Investors should be aware that complaints are public record and can be viewed on FINRA BrokerCheck.

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According to FINRA, Ishmael Williams has been named a respondent in a FINRA complaint alleging that he falsely certified to the State of New York that he completed continuing education required to renew his state insurance license.

The complaint alleges that Williams did not personally complete t...

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According to FINRA, Ishmael Williams has been named a respondent in a FINRA complaint alleging that he falsely certified to the State of New York that he completed continuing education required to renew his state insurance license.

The complaint alleges that Williams did not personally complete the continuing education courses and associated exams—instead, another individual did so on his behalf. Williams is also accused of providing false and misleading responses and testimony to FINRA when he stated that he had personally completed the courses.

Additionally, the complaint alleges that Williams failed to provide information and documents requested by FINRA, significantly impeding the completion of FINRA's investigation into his misconduct.

Continuing education requirements exist to ensure that licensed professionals maintain current knowledge of regulations, products, and best practices. When individuals falsify completion of these requirements, they may lack the knowledge necessary to properly serve clients and comply with regulations.

It is important to note that the filing of a complaint represents the initiation of a formal proceeding. Findings as to the allegations have not been made, and this does not represent a decision as to any of the allegations.

What Investors Can Learn: Licensing and continuing education requirements exist to protect investors. While investors cannot easily verify that their broker completed CE requirements, they can use FINRA BrokerCheck to review registration status and any disclosed regulatory actions.

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According to FINRA, Airlink Markets, LLC has been expelled from FINRA membership for failure to provide information or keep information current pursuant to FINRA Rule 9552.

FINRA Rule 9552 provides an expedited process for suspending or expelling firms and canceling registrations when members fai...

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According to FINRA, Airlink Markets, LLC has been expelled from FINRA membership for failure to provide information or keep information current pursuant to FINRA Rule 9552.

FINRA Rule 9552 provides an expedited process for suspending or expelling firms and canceling registrations when members fail to provide required information or fail to keep required information current. This rule exists to ensure FINRA can effectively oversee member firms and protect investors.

When a firm is expelled from FINRA membership, it can no longer conduct securities business. The expulsion serves to protect investors from firms that are unwilling or unable to comply with basic regulatory requirements regarding information provision and recordkeeping.

The firm's failure to provide required information prevented FINRA from fulfilling its regulatory oversight responsibilities. Such non-compliance can mask potential problems at a firm and leave investors without important protections.

What Investors Can Learn: Investors should verify that their brokerage firm is a current FINRA member in good standing. You can check a firm's membership status through FINRA BrokerCheck. If you learn that your firm has been expelled or suspended, you should consider transferring your accounts to another firm and review your account statements carefully for any irregularities.

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According to FINRA, Mark Robert Brosa has been barred from association with any FINRA member firm for failure to provide information or keep information current pursuant to FINRA Rule 9552(h).

FINRA Rule 9552 provides a streamlined process for barring individuals who fail to respond to FINRA requ...

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According to FINRA, Mark Robert Brosa has been barred from association with any FINRA member firm for failure to provide information or keep information current pursuant to FINRA Rule 9552(h).

FINRA Rule 9552 provides a streamlined process for barring individuals who fail to respond to FINRA requests for information. When registered persons fail to provide required information, it prevents FINRA from fulfilling its regulatory mission of protecting investors and maintaining market integrity.

The obligation to provide information to regulators is a fundamental requirement of securities industry registration. Individuals who obtain the privilege of working in the securities industry accept this responsibility as a condition of their registration.

A bar under Rule 9552(h) is automatic when an individual fails to respond to information requests within the required timeframe. The bar prevents the individual from associating with any FINRA member firm in any capacity.

What Investors Can Learn: Regulatory bars are disclosed on FINRA BrokerCheck and represent important information for investors. When considering working with a financial professional, reviewing their regulatory history—including any bars or suspensions—provides insight into their compliance record.

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