Bad Brokers

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

Linden certified to the State of New York that he had personally completed 15 hours of continui...

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

Linden 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 completed that continuing education on his behalf.

This is the fifth case in the January 2025 enforcement actions involving representatives who had others complete their insurance continuing education requirements in New York. The consistent pattern of these violations suggests that representatives in the industry may not be taking their educational obligations seriously.

Continuing education serves an important function in ensuring that licensed professionals maintain current knowledge of their field. Insurance products and regulations change over time, and professionals must stay current to properly serve their clients. Having someone else complete required training defeats this purpose.

The false certification to state regulators also represents a violation of the honesty and integrity standards expected of financial professionals. Regulators rely on truthful certifications to maintain the integrity of the licensing system.

The one-month suspension has been served. While consistent with similar cases, these sanctions demonstrate that FINRA takes continuing education fraud seriously. Investors can verify their representatives' qualifications and any disciplinary history through FINRA's BrokerCheck tool.

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According to FINRA, Christopher Paul Gallo was suspended from association with any FINRA member firm for five months for willfully violating Regulation Best Interest by recommending excessive trades that were not in his customers' best interests. No monetary penalty was imposed due to Gallo's financ...

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According to FINRA, Christopher Paul Gallo was suspended from association with any FINRA member firm for five months for willfully violating Regulation Best Interest by recommending excessive trades that were not in his customers' best interests. No monetary penalty was imposed due to Gallo's financial status.

Gallo recommended a series of trades to retail customers, including a senior customer, that were excessive and not in the customers' best interests. The trading generated $97,981 in commissions while causing $204,492 in realized losses to the customers.

Regulation Best Interest requires broker-dealers and their representatives to act in the best interest of retail customers when making recommendations. Recommending trading activity that primarily benefits the representative through commissions while causing significant losses to customers is a clear violation of this standard.

The involvement of a senior customer adds particular concern, as elderly investors often have less time to recover from investment losses and may rely on their savings for retirement income.

The five-month suspension is among the longer individual suspensions in this enforcement period. While no fine was imposed due to Gallo's financial status, the suspension removes him from the industry for an extended period. The case is related to FINRA Case #2018056490321, suggesting it may be part of a broader investigation into trading practices.

Investors should be alert to patterns of frequent trading that generate significant commissions, particularly when their accounts are also experiencing losses.

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According to FINRA, John Dennis Lowry and Kim Marie Monchik are facing charges in a FINRA complaint for failing to timely respond to information requests during an investigation.

Important note: This matter involves a complaint, which represents the initiation of a formal disciplinary proceeding....

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According to FINRA, John Dennis Lowry and Kim Marie Monchik are facing charges in a FINRA complaint for failing to timely respond to information requests during an investigation.

Important note: This matter involves a complaint, which represents the initiation of a formal disciplinary proceeding. No findings have been made regarding the allegations, and the respondents are presumed innocent until proven otherwise.

The complaint alleges that Lowry failed to timely provide information and documents until after FINRA issued two follow-up requests and initiated two expedited proceedings to compel compliance. Monchik allegedly failed to timely respond to five requests until after six follow-up requests and five expedited proceedings.

FINRA began investigating Spartan Capital Securities' sales of membership interests in unregistered private funds, an outside business activity of Lowry and Monchik. The requests sought information about the private funds and the firm's net capital calculations.

The complaint also alleges that Lowry, as CEO, failed to maintain a reasonable system for compliance with Rule 8210 requests and failed to supervise Monchik's responses. After delegating these responsibilities to Monchik, Lowry allegedly did not review whether his delegations were being properly exercised and failed to intervene despite red flags suggesting problems.

This is a separate matter from the other enforcement action against Spartan Capital and its principals in this period. Investors should be aware that pending complaints are disclosed on BrokerCheck and indicate ongoing regulatory concerns that have not yet been resolved.

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According to FINRA, EnrichHer Funding LLC, a funding portal based in Atlanta, Georgia, was expelled from FINRA membership for failure to provide information or keep information current as required by FINRA Rule 9552.

Funding portals are a type of FINRA member that operates platforms for crowdfund...

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According to FINRA, EnrichHer Funding LLC, a funding portal based in Atlanta, Georgia, was expelled from FINRA membership for failure to provide information or keep information current as required by FINRA Rule 9552.

Funding portals are a type of FINRA member that operates platforms for crowdfunding offerings under Regulation Crowdfunding. These portals must maintain their FINRA membership and comply with all applicable rules to continue operating.

When FINRA members fail to provide required information or keep their registration information current, FINRA may initiate proceedings under Rule 9552. If the deficiencies are not corrected, the ultimate sanction is expulsion from FINRA membership.

Expulsion is the most severe sanction FINRA can impose on a firm. It means the firm can no longer operate as a FINRA member and cannot conduct securities business that requires FINRA membership.

For investors who may have participated in crowdfunding offerings through this portal, the expulsion does not necessarily affect the status of their investments in the underlying companies. However, it may affect their ability to access information or services that were provided through the portal.

This case underscores the importance of firms maintaining current regulatory filings and responding to FINRA information requests. Failure to do so can result in loss of the ability to conduct business.

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