According to FINRA, Allen Israel Hershberg was barred from association with any FINRA member in all capacities for failing to provide documents and information requested during a FINRA investigation.

The investigation originated from a Form U5 filed by Hershberg's member firm disclosing that it permitted him to resign due to concerns regarding his unapproved outside real estate investments. The Form U5 also disclosed concerns regarding his recommendation of those same outside real estate investments to firm clients and others, including through limited liability companies he created.

Recommending unapproved outside investments to clients is a serious violation that can expose investors to unsuitable, fraudulent, or high-risk investments that have not been vetted by the firm. Creating LLCs to facilitate such investments suggests a potentially deliberate scheme to circumvent firm oversight and supervision.

FINRA's investigation sought to understand the nature of these investments, which clients were affected, what representations Hershberg made, and whether clients suffered losses. Hershberg's refusal to provide requested documents and information prevented FINRA from fully investigating these serious allegations and determining what action was needed to protect investors.

All registered persons must cooperate with regulatory investigations. Those who refuse to provide information, particularly regarding allegations of recommending undisclosed outside investments to clients, demonstrate they will not submit to regulatory accountability.

The permanent bar protects investors from an individual who allegedly recommended unapproved investments and then refused to provide information about those activities. This case reinforces that cooperation with investigations is mandatory and refusal results in permanent industry removal.