According to FINRA, Christian Scalia was assessed a deferred fine of $5,000 and suspended from association with any FINRA member in all capacities for two years on October 3, 2024.

On two separate occasions, Scalia possessed unauthorized materials while taking the Securities Industry Essentials (SIE) examination. Scalia took the SIE examinations at his residence using a remote delivery platform. Prior to beginning each examination, Scalia attested that he had reviewed and would abide by the SIE Rules of Conduct, which prohibited the use or attempted use of personal items during the examination, including cellular phones. However, during both examinations, Scalia possessed and repeatedly accessed his cellular phone.

The SIE examination tests basic knowledge of securities products, markets, and regulatory requirements. It is the first step in the licensing process for most securities industry positions. The examination is administered under strict rules to ensure the integrity of the testing process and verify that individuals actually possess the knowledge required to work in the industry.

Using unauthorized materials during an examination is a form of cheating that undermines the entire licensing system. When someone passes an examination by cheating, they have not demonstrated actual knowledge of the tested material. This means they may lack the competence necessary to properly serve customers and comply with regulatory requirements.

The fact that Scalia violated the rules on two separate occasions is particularly troubling. After cheating on the first examination, he had an opportunity to reflect on his conduct and take the examination properly the second time. Instead, he chose to cheat again, demonstrating a pattern of dishonesty rather than a one-time lapse in judgment.

The attestation that Scalia signed before each examination makes his violation even more egregious. He explicitly agreed to abide by the rules prohibiting use of cellular phones, then immediately violated those rules. This shows a willingness to make false promises and disregard agreements he has just made.

For investors, this case demonstrates why checking a broker's disciplinary history is so important. Someone who is willing to cheat on licensing examinations has demonstrated fundamental dishonesty and may be willing to cut corners or violate rules in other areas, including in dealings with customers.

The two-year suspension from October 7, 2024, through October 6, 2026, is a substantial sanction that reflects the seriousness of cheating on examinations. This lengthy suspension ensures that Scalia cannot work in the securities industry for an extended period and may deter others from similar violations. When Scalia eventually returns to the industry, this violation will remain on his permanent record as a warning to potential employers and customers.