According to FINRA, David Shane Simmons was barred from association with any FINRA member in all capacities for refusing to produce documents and information and refusing to appear for on-the-record testimony requested by FINRA.

The investigation concerned allegations referenced in a Form U5 filed by Simmons' member firm that disclosed he was discharged when he, through counsel, informed the firm that he would not provide a response to the firm's inquiries in connection with an internal investigation. FINRA sought to investigate the circumstances surrounding Simmons' discharge and the underlying conduct that prompted the firm's internal investigation. However, Simmons refused to participate in FINRA's investigation by failing to produce requested documents and information and refusing to appear for testimony.

Investors should understand that when firms discharge registered representatives and file Form U5 disclosures, FINRA typically investigates to determine the full facts and whether customer harm or regulatory violations occurred. The fact that Simmons refused to cooperate with both his firm's internal investigation and FINRA's subsequent investigation raises serious questions about the underlying conduct.

The permanent bar reflects the fundamental importance of regulatory cooperation in the securities industry. Registered persons have an obligation to assist in investigations, and refusal to do so prevents regulators from fulfilling their investor protection mission. When individuals refuse to provide any information or testimony about the circumstances of their discharge, they effectively obstruct the regulatory process. This case demonstrates that non-cooperation with regulatory authorities results in the most severe sanction available, permanent removal from the securities industry.