Bad Brokers

According to FINRA, David Nathan Slater (CRD #2061869), based in Livingston, New Jersey, was fined $7,500 and suspended from association with any FINRA member in all capacities for three months. The suspension was in effect from September 16, 2024, through December 15, 2024.

Without admitting or de...

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According to FINRA, David Nathan Slater (CRD #2061869), based in Livingston, New Jersey, was fined $7,500 and suspended from association with any FINRA member in all capacities for three months. The suspension was in effect from September 16, 2024, through December 15, 2024.

Without admitting or denying the findings, Slater consented to the sanctions and to the entry of findings that he shared approximately $500,000 in commissions generated from securities transactions in his customers' accounts with an unregistered person. Slater paid the unregistered person half of the commissions he earned from his member firm as part of a business partnership, including insurance sales unrelated to the securities industry. Slater and the unregistered person also communicated regarding potential securities recommendations for customers and met jointly with at least one customer to discuss securities recommendations.

The sharing of commissions with unregistered individuals is a fundamental violation of securities industry rules. FINRA registration requirements exist to ensure that anyone who participates in the securities business has passed qualifying examinations, is subject to regulatory oversight, and is supervised by a member firm. When a registered representative shares commissions with an unregistered person, it effectively allows that person to profit from the securities business without being subject to any of the regulatory safeguards designed to protect investors.

The scale of the commission sharing in this case is particularly concerning. Approximately $500,000 in commissions represents a substantial sum, and the fact that Slater paid half of his earnings to the unregistered person suggests a deep and ongoing business relationship. Even more troubling is the finding that the unregistered person was actively involved in the securities business by communicating about potential recommendations and meeting with at least one customer. This level of involvement goes well beyond passive commission sharing and amounts to an unregistered person actively participating in the securities business.

Investors should be aware that every individual who provides securities advice or participates in securities transactions should be properly registered and subject to regulatory oversight. If an investor encounters someone who appears to be involved in investment decisions but is not a registered representative, that is a significant red flag. Investors can verify registration status through FINRA BrokerCheck.

This case demonstrates that FINRA will impose meaningful sanctions for commission sharing violations, particularly when the amounts involved are large and the unregistered person is actively participating in securities-related activities. The three-month suspension and $7,500 fine, combined with the permanent entry on Slater's regulatory record, underscore the seriousness with which FINRA treats these violations.

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According to FINRA, Raymond Damien Rohne (CRD #1942268), a broker based in Croton-on-Hudson, New York, was named as a respondent in a FINRA complaint on August 1, 2024, alleging that he failed to appear and provide on-the-record testimony requested by FINRA. These are allegations that have not been ...

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According to FINRA, Raymond Damien Rohne (CRD #1942268), a broker based in Croton-on-Hudson, New York, was named as a respondent in a FINRA complaint on August 1, 2024, alleging that he failed to appear and provide on-the-record testimony requested by FINRA. These are allegations that have not been adjudicated.

The complaint alleges that Rohne failed to cooperate with FINRA's investigation into activities regarding a failed sale of shares in a private space exploration company. Specifically, FINRA alleges that Rohne failed to appear and provide on-the-record testimony that was material to the investigation. The case is connected to fellow respondent Ben Jen, and FINRA had requested electronic communications between Rohne and Jen as part of its broader inquiry.

This case is tied to FINRA Case #2022075977501. The obligation to provide testimony is a fundamental requirement for all individuals associated with FINRA member firms. Under FINRA Rule 8210, registered persons and associated persons are required to provide information, documents, and testimony when requested by FINRA in connection with an investigation, complaint, examination, or proceeding. Failure to comply with Rule 8210 is considered one of the most serious violations a broker can commit because it directly obstructs FINRA's ability to fulfill its investor protection mandate.

When a broker refuses to provide testimony, FINRA is unable to fully investigate the underlying conduct that prompted the inquiry. This can leave investors without answers about potential misconduct that may have affected their investments. The refusal to testify does not necessarily mean the broker engaged in wrongdoing related to the underlying investigation, but the failure to cooperate is itself a standalone violation that can result in significant sanctions, including a bar from the securities industry.

Investors should understand that these are currently allegations and Rohne is entitled to a hearing before a FINRA disciplinary panel. The case has not been adjudicated, and no findings of wrongdoing have been made at this stage. Investors can monitor the progress of this case and check the backgrounds of their financial professionals through FINRA's BrokerCheck system, which provides free access to the professional backgrounds of current and former FINRA-registered brokers and firms.

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According to FINRA, Willnard Edwrence Love (CRD #7422353), a broker based in Florissant, Missouri, was named as a respondent in a FINRA complaint on August 6, 2024, alleging that he falsified his Securities Industry Essentials (SIE) exam score report. These are allegations that have not been adjudic...

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According to FINRA, Willnard Edwrence Love (CRD #7422353), a broker based in Florissant, Missouri, was named as a respondent in a FINRA complaint on August 6, 2024, alleging that he falsified his Securities Industry Essentials (SIE) exam score report. These are allegations that have not been adjudicated.

The complaint alleges that Love falsely told his member firm that he had received a passing exam score report on the FINRA Securities Industry Essentials exam when, in fact, he had failed the exam. When his supervisors requested to see his exam score report, Love allegedly knowingly provided a falsified score report that indicated he had received a passing score.

This case is tied to FINRA Case #2023077854301. The SIE exam is a foundational qualification exam that tests a candidate's knowledge of the securities industry, including concepts fundamental to working in the industry such as types of products and their risks, the structure of the securities industry markets, regulatory agencies, and prohibited practices. Passing the SIE exam is a prerequisite for individuals seeking to become registered representatives, and it serves as an important baseline measure of competency.

The alleged falsification of an exam score report is a particularly concerning form of dishonesty because it goes directly to a broker's qualifications and integrity. The examination requirements exist to ensure that individuals working in the securities industry have a minimum level of knowledge necessary to serve investors competently. When someone circumvents these requirements through fraud, it potentially puts investors at risk of receiving advice or services from an unqualified individual.

For investors, this case underscores the importance of verifying the qualifications and backgrounds of financial professionals. FINRA's BrokerCheck system allows investors to confirm whether a broker has passed the required examinations and holds the necessary registrations to provide financial services. Investors should be vigilant about working only with properly qualified professionals, as the examination process serves as a critical consumer protection measure.

It is important to emphasize that these allegations have not been adjudicated. Love is entitled to a hearing before a FINRA disciplinary panel, where the charges must be proven before any sanctions can be imposed. Investors can monitor the status of this case through FINRA's disciplinary actions database and BrokerCheck.

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According to FINRA, Daniel Hoeflinger (CRD #7602554), a broker based in New York, New York, was named as a respondent in a FINRA complaint on August 8, 2024, alleging that he failed to provide information and documents requested by FINRA in connection with its investigation. These are allegations th...

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According to FINRA, Daniel Hoeflinger (CRD #7602554), a broker based in New York, New York, was named as a respondent in a FINRA complaint on August 8, 2024, alleging that he failed to provide information and documents requested by FINRA in connection with its investigation. These are allegations that have not been adjudicated.

The complaint alleges that Hoeflinger failed to respond to FINRA's requests for information and documents related to its investigation of allegations made by his former member firm on a Form U5. The Form U5 is the Uniform Termination Notice for Securities Industry Registration, which firms are required to file when a registered representative leaves the firm. Notably, the firm had discharged Hoeflinger for integrity concerns, specifically alleging that he had provided false information, including documentation, in connection with a paid leave of absence.

This case is tied to FINRA Case #2023078202201. When a firm files a Form U5 that includes allegations of misconduct, FINRA has the authority and responsibility to investigate those allegations. The investigation process depends on the cooperation of the individuals involved, and FINRA Rule 8210 requires all persons associated with a member firm to provide information, documents, and testimony when requested in connection with an investigation.

The failure to cooperate with a FINRA investigation is a standalone violation that carries serious consequences, potentially including a bar from the securities industry. FINRA views non-cooperation as one of the most significant violations because it directly impedes the regulator's ability to protect investors. Without access to requested information and documents, FINRA cannot effectively evaluate the underlying allegations and determine whether investors may have been harmed.

For investors, this case highlights the importance of paying attention to the circumstances under which a broker leaves a firm. When a broker is discharged for integrity-related concerns, it is a significant red flag. Investors can access this information through FINRA's BrokerCheck system, which includes details from Form U5 filings and any associated regulatory actions. Regularly checking a broker's record can help investors make informed decisions about who manages their financial assets.

These allegations have not yet been adjudicated. Hoeflinger is entitled to a hearing and the opportunity to respond to the charges.

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According to FINRA, Christopher Cacace (CRD #4308782), a broker based in Rockville Centre, New York, was named as a respondent in a FINRA complaint on August 15, 2024, alleging that he failed to reasonably supervise registered representatives while serving as his member firm's Chief Compliance Offic...

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According to FINRA, Christopher Cacace (CRD #4308782), a broker based in Rockville Centre, New York, was named as a respondent in a FINRA complaint on August 15, 2024, alleging that he failed to reasonably supervise registered representatives while serving as his member firm's Chief Compliance Officer (CCO). These are allegations that have not been adjudicated.

The complaint charges Cacace with failing to reasonably supervise, investigate, and respond to red flags of churning, excessive trading, and unsuitable trading by registered representatives at his firm. Churning occurs when a broker engages in excessive buying and selling of securities in a customer's account primarily to generate commissions rather than to benefit the customer. According to the complaint, Cacace never restricted or limited the trading by firm representatives and failed to take any meaningful steps to prevent their trading activity, despite clear warning signs.

FINRA alleges that the representatives under Cacace's supervision had extensive regulatory histories and numerous customer complaints, which should have served as significant red flags requiring heightened oversight. The complaint further alleges that Cacace failed to reasonably supervise one representative's churning of a specific customer's account, resulting in his failure to supervise that representative's willful violation of Section 10(b) of the Securities Exchange Act and Rule 10b-5, which are among the most serious anti-fraud provisions in federal securities law.

The financial impact alleged in this case is substantial. According to the complaint, customers incurred losses totaling $709,444, while the firm and its representatives obtained $546,855 in commissions, fees, and costs. This disparity between customer losses and firm profits is a hallmark indicator of churning and excessive trading.

This case is tied to FINRA Case #2020065599103. For investors, this case illustrates the critical role that compliance officers play in protecting customers from abusive trading practices. A CCO who fails to act on red flags of misconduct effectively leaves investors without the protections that the regulatory framework is designed to provide. Supervisory failures can be just as harmful to investors as the underlying misconduct they enable.

Investors who believe they may have been subjected to churning or excessive trading should review their account statements for signs of frequent trading, high turnover ratios, and disproportionate commission charges. These allegations have not been adjudicated, and Cacace is entitled to a hearing before a FINRA disciplinary panel.

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According to FINRA, Bournehill Investment Services, Inc. (CRD #104003), a brokerage firm based in Uniondale, New York, was expelled on August 26, 2024, for failure to provide information or keep information current pursuant to FINRA Rule 9552.

FINRA Rule 9552 provides a streamlined process for addr...

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According to FINRA, Bournehill Investment Services, Inc. (CRD #104003), a brokerage firm based in Uniondale, New York, was expelled on August 26, 2024, for failure to provide information or keep information current pursuant to FINRA Rule 9552.

FINRA Rule 9552 provides a streamlined process for addressing a member firm's failure to comply with certain obligations, including the requirement to provide information and keep filings current with FINRA. When a firm fails to respond to FINRA's requests for information or fails to keep its registration and compliance records up to date, FINRA may initiate proceedings under Rule 9552 that can result in suspension or expulsion from membership.

The expulsion of Bournehill Investment Services represents the most severe sanction available under Rule 9552. An expulsion means the firm is no longer a FINRA member and cannot conduct securities business. This action is final and reflects the firm's failure to meet its basic regulatory obligations. FINRA's ability to oversee its member firms depends on timely and accurate reporting, and when a firm fails to comply, it undermines the entire regulatory framework designed to protect investors.

For investors, the expulsion of a brokerage firm is a significant event. If you had an account with Bournehill Investment Services, your assets should be transferred to another firm or returned to you. SIPC (Securities Investor Protection Corporation) may be involved if there are concerns about missing customer assets. Investors are encouraged to verify the status of their accounts and contact FINRA or SIPC if they have questions about the disposition of their investments.

This case serves as a reminder that FINRA requires all member firms to maintain current and accurate regulatory filings and to respond to information requests in a timely manner. Firms that fail to meet these fundamental obligations face serious consequences, up to and including permanent expulsion from the industry.

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According to FINRA, Fanar Fawaz Almosleh (CRD #7521305), a broker based in Carmichael, California, was barred from the securities industry on August 19, 2024, for failure to provide information or keep information current pursuant to FINRA Rule 9552(h).

FINRA Rule 9552(h) authorizes FINRA to bar an...

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According to FINRA, Fanar Fawaz Almosleh (CRD #7521305), a broker based in Carmichael, California, was barred from the securities industry on August 19, 2024, for failure to provide information or keep information current pursuant to FINRA Rule 9552(h).

FINRA Rule 9552(h) authorizes FINRA to bar an individual from associating with any FINRA member firm when that person fails to provide requested information or keep their regulatory filings current. A bar under this rule is among the most severe sanctions FINRA can impose on an individual, effectively ending their career in the securities industry. This action was taken in connection with FINRA Case #2024081046501.

When FINRA requests information from a registered representative, the individual is obligated to respond fully and promptly. This obligation exists because FINRA's regulatory oversight depends on the cooperation of the individuals it regulates. When a broker fails to provide requested information, FINRA cannot effectively investigate potential misconduct or ensure that investors are being protected. The bar imposed under Rule 9552(h) reflects the seriousness with which FINRA treats non-compliance with its information requests.

For investors, a bar means that Almosleh is no longer permitted to work in the securities industry in any capacity associated with a FINRA member firm. Investors who had accounts managed by or transactions processed through Almosleh should review their account records and consider consulting with a qualified professional if they have concerns about their investments. Investors can verify the status of any financial professional using FINRA's free BrokerCheck tool, which provides detailed background information including regulatory actions, employment history, and customer complaints.

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According to FINRA, Sebastian G. Bongiovanni (CRD #4398600), a broker based in Staten Island, New York, was barred from the securities industry on August 5, 2024, for failure to provide information or keep information current pursuant to FINRA Rule 9552(h).

FINRA Rule 9552(h) authorizes FINRA to ba...

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According to FINRA, Sebastian G. Bongiovanni (CRD #4398600), a broker based in Staten Island, New York, was barred from the securities industry on August 5, 2024, for failure to provide information or keep information current pursuant to FINRA Rule 9552(h).

FINRA Rule 9552(h) authorizes FINRA to bar an individual from associating with any FINRA member firm when that person fails to comply with requests for information or fails to keep their regulatory filings current. A bar is the most serious sanction that can be imposed on an individual under this rule, permanently prohibiting the person from working in any capacity at a FINRA member firm. This action was taken in connection with FINRA Case #2022077443301.

The obligation to provide information to FINRA is a fundamental requirement for all registered representatives and associated persons. FINRA's ability to protect investors depends on its ability to conduct investigations and examinations, which in turn requires the cooperation of the individuals it regulates. When a broker fails to respond to information requests, it impedes FINRA's regulatory mission and may indicate that the individual is attempting to conceal misconduct or other issues that could affect investors.

For investors, this bar means that Bongiovanni can no longer work in the securities industry at any FINRA member firm. Investors who previously worked with Bongiovanni should review their account statements and transaction records for any irregularities. FINRA's BrokerCheck system is a free resource that allows investors to research the professional backgrounds of brokers and brokerage firms, including any disciplinary actions, customer complaints, and employment history. Regularly checking the backgrounds of financial professionals is an important step investors can take to protect themselves.

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According to FINRA, Nicholas C. Camp (CRD #6365278), a broker based in Columbus, Ohio, was barred from the securities industry on August 13, 2024, for failure to provide information or keep information current pursuant to FINRA Rule 9552(h).

FINRA Rule 9552(h) provides FINRA with the authority to b...

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According to FINRA, Nicholas C. Camp (CRD #6365278), a broker based in Columbus, Ohio, was barred from the securities industry on August 13, 2024, for failure to provide information or keep information current pursuant to FINRA Rule 9552(h).

FINRA Rule 9552(h) provides FINRA with the authority to bar an individual from associating with any member firm when the individual fails to provide requested information or keep their regulatory filings current. This is a completed action, meaning Camp is now permanently prohibited from working in the securities industry at any FINRA-regulated firm. This action was taken in connection with FINRA Case #2024081426901.

The requirement to provide information to FINRA is not optional for registered representatives. It is a core obligation that comes with the privilege of working in the securities industry. FINRA uses information requests as part of its regulatory oversight to investigate potential misconduct, verify compliance with securities laws and rules, and ensure that investors are being treated fairly. When an individual refuses or fails to respond, FINRA must take action to maintain the integrity of the regulatory process.

For investors, this case is a reminder of the importance of staying informed about the regulatory status of their financial professionals. A bar under Rule 9552(h) is publicly reported and can be found on FINRA's BrokerCheck system. Investors who previously worked with Camp should review their investment accounts and transaction history for any concerns. If any irregularities are identified, investors may wish to consult with a qualified professional about their options. FINRA's BrokerCheck tool is available free of charge and provides comprehensive background information on current and former registered brokers.

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According to FINRA, Jessica Lynn Cottee (CRD #6923343), a broker based in Indianapolis, Indiana, was barred from the securities industry on August 20, 2024, for failure to provide information or keep information current pursuant to FINRA Rule 9552(h).

FINRA Rule 9552(h) empowers FINRA to bar indivi...

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According to FINRA, Jessica Lynn Cottee (CRD #6923343), a broker based in Indianapolis, Indiana, was barred from the securities industry on August 20, 2024, for failure to provide information or keep information current pursuant to FINRA Rule 9552(h).

FINRA Rule 9552(h) empowers FINRA to bar individuals who fail to respond to information requests or fail to maintain current regulatory filings. A bar under this rule permanently prohibits the individual from associating with any FINRA member firm in any capacity. This action was taken in connection with FINRA Case #2024080887501.

The cooperation of registered representatives with FINRA's regulatory processes is essential to investor protection. When FINRA requests information from a broker, it is typically in connection with an investigation or examination designed to ensure compliance with securities rules and protect the investing public. Failure to provide the requested information prevents FINRA from completing its review and may leave potential violations unaddressed, putting investors at risk.

For investors, this bar means that Cottee is no longer eligible to work in the securities industry at any FINRA member firm. Any investors who previously had dealings with Cottee should consider reviewing their account records. FINRA encourages all investors to use its free BrokerCheck tool to research the backgrounds of their financial professionals before and during the course of the business relationship. BrokerCheck provides access to employment history, licensing information, regulatory actions, and customer complaints, helping investors make informed decisions about who handles their money.

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