According to FINRA, Charles Scott Burford Sr. of Dallas, Texas was fined $10,000 and suspended from association with any FINRA member firm in all capacities for six months for executing unauthorized trades and facilitating unauthorized withdrawals in a deceased customer's account.

Burford has appealed the SEC decision to the U.S. Court of Appeals for the Fifth Circuit, and the sanctions are not in effect pending that review.

FINRA found that Burford did not submit his customer's death certificate to his member firm until over 14 months after the customer's death. During this time, Burford executed trades and facilitated withdrawals from the account based on instructions from the customer's widow.

When Burford finally submitted the death certificate—only because it was necessary for the widow, as named beneficiary, to take a required minimum distribution—he failed to inform the firm that the customer's account had remained open and active. Burford then continued executing additional trades and withdrawals.

In total, Burford executed nine sales transactions totaling nearly $130,000 and facilitated eight withdrawals totaling nearly $85,000 at the widow's request.

The situation only came to light when Burford learned that the customer's daughter planned to contest the will. Burford then asked the firm to freeze the account but still did not disclose his improper transactions until the daughter's attorney warned that the firm might be liable.

This case illustrates the problems that arise when proper procedures are not followed after a customer's death. Accounts of deceased persons require special handling, and representatives cannot simply take instructions from family members without proper authorization and firm notification.