Bad Brokers

According to FINRA, Scot Barringer of Pinehurst, North Carolina was fined $5,000 and suspended from association with any FINRA member in all capacities for three months for recommending speculative bonds without a reasonable basis.

Barringer recommended that customers invest in a speculative, unr...

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According to FINRA, Scot Barringer of Pinehurst, North Carolina was fined $5,000 and suspended from association with any FINRA member in all capacities for three months for recommending speculative bonds without a reasonable basis.

Barringer recommended that customers invest in a speculative, unrated debt security without having a reasonable basis to believe the recommendation was in their best interest or suitable for their investment profiles. The customers included three retired individuals and a non-profit entity.

As a result of these recommendations, the customers became overconcentrated in these bonds, either alone or in combination with other alternative investments. None of the customers had prior experience with alternative investments, all had moderate to moderately aggressive risk tolerances, and all had investment objectives focused on income.

Barringer also inaccurately completed transaction forms for eight customers' bond purchases. He incorrectly stated the percentage of customers' net worth invested in these securities, underreporting concentration percentages by failing to include prior bond purchases or existing alternative investment holdings. For five customers, he also inaccurately stated that the investments did not cause them to exceed concentration thresholds.

Barringer is not required to pay restitution because his member firm has agreed to compensate affected customers.

For investors, particularly retirees and those seeking income, this case highlights the risks of overconcentration in speculative investments. Unrated bonds carry significant risk, and concentration in any single speculative investment can jeopardize financial security.

The suspension is in effect from May 19 through August 18, 2025.

Affected customers should ensure they receive the restitution the firm has agreed to pay.

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According to FINRA, Kyle Joon Kim of Dulles, Virginia was fined $5,000 and suspended from association with any FINRA member in all capacities for three months for participating in an outside business activity without providing prior notice to his member firm.

Kim and two other persons formed an i...

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According to FINRA, Kyle Joon Kim of Dulles, Virginia was fined $5,000 and suspended from association with any FINRA member in all capacities for three months for participating in an outside business activity without providing prior notice to his member firm.

Kim and two other persons formed an informal partnership to build and sell residential properties. Kim formed a limited liability company to support the partnership, serving as managing member and controlling the company's bank account.

Kim's anticipated role included helping decide which parcels to develop, how they would be developed, working with subcontractors, and other project logistics. After pausing for the COVID-19 pandemic, Kim and his partners resumed planning.

Kim also arranged for two firm customers to provide a total of $90,000 to help finance the projects. This involvement of firm customers in his outside business created additional concerns beyond the mere failure to disclose.

Additionally, Kim did not provide responses to specific questions on his firm's annual compliance questionnaires, further obscuring his outside activities from the firm's oversight.

The requirement to disclose outside business activities serves multiple purposes: it allows firms to evaluate potential conflicts of interest, assess whether the activity might harm the firm's reputation, and determine whether firm customers might be at risk. When customers invest in a broker's outside ventures, as happened here, the potential for conflicts is significant.

The suspension is in effect from May 19 through August 18, 2025.

Investors who provided funds for Kim's real estate projects should understand this investment was made without firm oversight, and they may wish to review their arrangements carefully.

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According to FINRA, Brian Robert Roth of Mendham, New Jersey was suspended from association with any FINRA member in all capacities for three months for borrowing $250,000 from a customer without disclosure to or permission from his member firm.

When Roth joined a new firm, the customer followed ...

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According to FINRA, Brian Robert Roth of Mendham, New Jersey was suspended from association with any FINRA member in all capacities for three months for borrowing $250,000 from a customer without disclosure to or permission from his member firm.

When Roth joined a new firm, the customer followed him and opened accounts at that firm. However, Roth did not disclose the existing loan to the firm at the time of his registration. The loan was subsequently documented in a promissory note, and Roth has since repaid it in full.

Despite repaying the loan, Roth falsely attested in annual compliance questionnaires that he had not solicited or accepted a loan from a customer while associated with the firm. These false statements prevented the firm from knowing about and supervising this relationship.

No monetary sanction was imposed due to Roth's financial status.

Borrowing from customers creates inherent conflicts of interest. A broker who owes money to a customer may feel pressure to make the customer happy in ways that affect investment recommendations or account management. Customers may feel unable to complain about their broker's performance when that broker owes them money. Even when loans are eventually repaid, as here, the relationship during the loan period is compromised.

The false attestations compounded the violation by actively concealing the arrangement from firm oversight.

The suspension is in effect from May 5 through August 4, 2025.

Investors should avoid lending money to their brokers. If a broker asks to borrow money, this is a significant red flag that should be reported to the firm's compliance department and potentially to FINRA.

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According to FINRA, Thomas A. Vigil of Saunderstown, Rhode Island was assessed a deferred fine of $10,000, suspended from association with any FINRA member in all capacities for 12 months, and ordered to pay deferred restitution of $25,436 plus interest for unsuitable variable annuity recommendation...

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According to FINRA, Thomas A. Vigil of Saunderstown, Rhode Island was assessed a deferred fine of $10,000, suspended from association with any FINRA member in all capacities for 12 months, and ordered to pay deferred restitution of $25,436 plus interest for unsuitable variable annuity recommendations and related misconduct.

Vigil recommended that customers exchange their existing variable annuities for L-share annuities paired with Guaranteed Minimum Withdrawal Benefit riders without conducting any suitability assessment or comparative analysis. In each case, he incorrectly stated that the replacement annuity had lower fees when it actually had fees 50 basis points higher than what customers already owned.

Vigil also recommended investment-only variable annuity purchases using qualified funds from customers' IRAs without a reasonable basis to believe customers would benefit from the features these annuities charged extra for. He failed to accurately assess the costs and failed to consider whether customers, based on their ages, would face tax penalties for early withdrawals.

The violations extended to negligent misrepresentations on customer-facing disclosure forms. Vigil stated he was recommending B-share annuities when applications were actually for more expensive L-share annuities, and he misrepresented fee information to make transactions appear more favorable.

Additionally, Vigil forged a customer's signatures by photocopying them from her first annuity application onto her second application. While the customer approved the purchase, she did not consent to the signature forgery.

The suspension is in effect from May 5, 2025, through May 4, 2026.

Variable annuity exchanges and purchases require careful analysis. Investors should always understand the fees they'll pay and how they compare to their current investments.

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According to FINRA, David Wong of Monterey Park, California has appealed an Office of Hearing Officers (OHO) decision to the National Adjudicatory Council (NAC). The OHO barred Wong from association with any FINRA member in all capacities for misusing and converting customer funds.

The findings s...

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According to FINRA, David Wong of Monterey Park, California has appealed an Office of Hearing Officers (OHO) decision to the National Adjudicatory Council (NAC). The OHO barred Wong from association with any FINRA member in all capacities for misusing and converting customer funds.

The findings stated that Wong converted funds in two customer accounts by transferring them to his member firm's account without the knowledge or consent of the customers.

In the first instance, Wong instructed the firm's clearing firm to transfer $3,230 from a customer's retirement account into a firm account. In the second instance, Wong assessed $6,200 in fees against a trust account established for two other customers, resulting in the transfer of that amount to a firm account.

The OHO found that by taking funds given to him by customers for other purposes and using them as if they were his own, Wong engaged in flagrant dishonesty that renders him unfit for employment in the securities industry.

Conversion—taking customer money or securities for unauthorized purposes—is among the most serious violations in the securities industry. It represents a fundamental breach of the trust customers place in their financial professionals and typically results in permanent bars from the industry.

Because Wong has appealed, the sanction is not currently in effect pending review by the NAC. The NAC may increase, decrease, modify, or reverse the findings and sanctions.

Customers who believe their funds may have been improperly taken should review their account statements carefully and consider consulting with a securities attorney about their options for recovery. Even though the case is on appeal, affected customers may have arbitration claims.

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According to FINRA, Meredith Archer Webber of Cobleskill, New York was named as a respondent in a FINRA complaint alleging that she failed to respond to requests for documents and information and failed to provide on-the-record testimony as part of an investigation into whether she misappropriated f...

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According to FINRA, Meredith Archer Webber of Cobleskill, New York was named as a respondent in a FINRA complaint alleging that she failed to respond to requests for documents and information and failed to provide on-the-record testimony as part of an investigation into whether she misappropriated funds from two elderly customers.

This is a complaint—an allegation—and no findings have been made. Webber is presumed innocent unless and until the charges are proven.

The complaint alleges that FINRA requested documentation related to Webber's receipt of loan funds from an elderly customer, bank account statements, phone records, and electronic communications. FINRA alleges this information was material to its investigation into whether Webber misappropriated customers' funds and was necessary to complete the investigation.

Webber's alleged failure to provide the requested documents, information, and testimony has allegedly impeded FINRA's investigation into her potential misconduct.

Misappropriation of customer funds—taking customer money for unauthorized purposes—is one of the most serious allegations that can be made against a financial professional. When such allegations involve elderly customers, the concerns are heightened because seniors are often targeted for financial exploitation.

While these are only allegations at this stage, investors who worked with Webber, particularly elderly clients, should review their account statements carefully. Any unexplained withdrawals, transfers, or "loans" to the broker should be investigated.

Investors who believe they may have been victimized can contact FINRA, file a complaint, or consult with a securities attorney about potential claims. The statute of limitations for such claims can be limited, so prompt action may be important.

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According to FINRA, EKATS Securities Inc., doing business as SBC Partners, of New York, New York has been suspended from FINRA membership effective April 11, 2025, pursuant to FINRA Rule 9552 for failing to provide information or keep information current.

FINRA Rule 9552 allows the regulator to s...

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According to FINRA, EKATS Securities Inc., doing business as SBC Partners, of New York, New York has been suspended from FINRA membership effective April 11, 2025, pursuant to FINRA Rule 9552 for failing to provide information or keep information current.

FINRA Rule 9552 allows the regulator to suspend a firm or individual who fails to provide information or documents requested under FINRA Rule 8210, or who fails to keep registration information current. Such suspensions continue until the firm or individual provides the required information or demonstrates compliance.

A suspension under this rule is not a finding of misconduct regarding the underlying investigation—it is specifically a sanction for failing to cooperate with FINRA's regulatory requests. However, it effectively prevents the firm from conducting securities business until the matter is resolved.

For customers of EKATS Securities/SBC Partners, this suspension means the firm cannot currently conduct securities business on your behalf. If you have accounts with this firm, you should consider whether your assets are accessible and whether you need to transfer your account to another broker-dealer.

Investors can verify a firm's current status and any regulatory events through FINRA BrokerCheck. This case illustrates the importance of monitoring your broker-dealer's regulatory status, as suspensions can occur quickly and affect your ability to access your investments.

If you have difficulty accessing your account or obtaining information about your investments, you may need to contact FINRA or consult with a securities attorney about your options.

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According to FINRA, Mercury Capital Advisors, LLC of New York, New York has been suspended from FINRA membership effective April 11, 2025, pursuant to FINRA Rule 9552 for failing to provide information or keep information current.

This type of suspension occurs when a firm fails to respond to FIN...

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According to FINRA, Mercury Capital Advisors, LLC of New York, New York has been suspended from FINRA membership effective April 11, 2025, pursuant to FINRA Rule 9552 for failing to provide information or keep information current.

This type of suspension occurs when a firm fails to respond to FINRA information requests or fails to maintain current registration information. The suspension remains in effect until the firm comes into compliance.

While not a finding of substantive misconduct, failure to cooperate with regulatory information requests is itself a serious violation. FINRA relies on firms' cooperation to conduct investigations, monitor compliance, and protect investors. When firms fail to respond, it hampers the regulator's ability to perform these essential functions.

For customers with accounts at Mercury Capital Advisors, this suspension prevents the firm from conducting securities business. If you have investments through this firm, you should determine whether you can access your assets and whether you need to take steps to protect your interests.

Investors can check the current status of any broker-dealer through FINRA BrokerCheck at brokercheck.finra.org. Regular monitoring of your firm's regulatory status can provide early warning of potential problems.

If the suspension continues, customers may need to transfer their accounts to another broker-dealer. If you experience difficulties accessing your investments or obtaining information about your accounts, consider consulting with a securities attorney or contacting FINRA directly for guidance.

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According to FINRA, Synapse Brokerage LLC of Parker, Colorado has been suspended from FINRA membership effective April 11, 2025, pursuant to FINRA Rule 9552 for failing to provide information or keep information current.

The firm appears on the suspension list twice, suggesting multiple outstandi...

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According to FINRA, Synapse Brokerage LLC of Parker, Colorado has been suspended from FINRA membership effective April 11, 2025, pursuant to FINRA Rule 9552 for failing to provide information or keep information current.

The firm appears on the suspension list twice, suggesting multiple outstanding information deficiencies or separate proceedings.

A FINRA Rule 9552 suspension takes effect when a firm or individual fails to provide requested information or documents, or fails to maintain current registration information. The suspension continues until compliance is achieved.

For any customers of Synapse Brokerage, this suspension means the firm cannot currently conduct securities business. You should verify the status of your accounts, determine whether you can access your assets, and consider whether you need to transfer to another broker-dealer.

The Parker, Colorado location may indicate a smaller operation, and customers should be particularly attentive to ensuring their investments are properly protected. If the firm is unable or unwilling to provide required information to FINRA, this raises questions about its operational status and ability to service customer accounts.

Investors with accounts at suspended firms should: verify their account balances and holdings against recent statements; ensure they have copies of all account documentation; determine whether their securities are held at a clearing firm that remains operational; and consider consulting with a securities attorney if they have any concerns about accessing their investments.

FINRA BrokerCheck provides current information about firm registration status and regulatory events.

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According to FINRA, Matthew T. Mierzycki of Austin, Texas had his registration revoked effective April 16, 2025, pursuant to FINRA Rule 8320 for failure to pay fines and/or costs.

A revocation under Rule 8320 occurs when a registered person fails to pay fines or costs imposed in a FINRA disciplin...

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According to FINRA, Matthew T. Mierzycki of Austin, Texas had his registration revoked effective April 16, 2025, pursuant to FINRA Rule 8320 for failure to pay fines and/or costs.

A revocation under Rule 8320 occurs when a registered person fails to pay fines or costs imposed in a FINRA disciplinary proceeding. Unlike a suspension, which may be lifted once requirements are met, a revocation is a more serious sanction that bars the individual from association with any FINRA member.

This revocation means Mierzycki cannot work in any capacity with a FINRA member firm. If he was previously found to have committed violations warranting fines, his failure to pay those fines resulted in this additional sanction.

For investors who may have worked with Mierzycki, this revocation is the culmination of a disciplinary process that presumably began with findings of misconduct. The original violations would be disclosed in FINRA BrokerCheck, along with this revocation.

Revocations for failure to pay fines can indicate financial difficulties that may be relevant to any outstanding claims investors might have against the individual. If the individual cannot pay regulatory fines, it may affect their ability to pay customer claims as well.

Investors with potential claims against Mierzycki should consult with a securities attorney to understand their options. Claims may still be pursued through FINRA arbitration, and there may be other responsible parties such as member firms that employed Mierzycki.

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