According to FINRA, Dinu Marian Tise was assessed a deferred fine of $7,500 and suspended for six months on January 19, 2022, for acting unethically by circumventing his member firm's policies when he caused a senior customer to draft and sign a will naming him as primary beneficiary, and by concealing this conduct from his firm.

A senior customer had engaged an attorney to draft a will naming Tise as a beneficiary with at least a six-figure bequest. However, the customer never signed that attorney-drafted will. Later, Tise typed a will for the customer that named him as primary beneficiary, which would have resulted in a bequest of over $5 million to him. Tise provided this typed will to the customer to use as a guide to handwrite a new will.

Two days later, the customer handwrote and signed a will nearly identical to the version Tise provided. This handwritten will was valid under state law until the customer executed a new will. The customer later complained to the firm, had her account reassigned to a different representative, and signed a new will that did not name Tise as beneficiary.

Despite being aware of both the draft unsigned will and the signed handwritten will naming him as beneficiary, and contrary to firm policies and procedures, Tise never disclosed to the firm that the customer had named him as a beneficiary. Tise also provided a false compliance attestation stating he had reported all potential policy violations, despite knowing that being named a beneficiary violated firm policy. During a firm investigation, Tise initially denied typing the will before voluntarily correcting that misstatement later the same day.

This conduct represents a serious breach of ethical obligations and a violation of the trust that customers place in their financial advisors. Financial professionals should never use their position to obtain personal benefits from customers, particularly elderly or vulnerable customers. Firm policies prohibiting representatives from being named as beneficiaries exist specifically to prevent this type of exploitation.

For investors, particularly seniors, this case serves as a warning about the risks of naming your financial advisor as a beneficiary. Such arrangements create obvious conflicts of interest and may result from undue influence. Investors should consult with independent attorneys regarding estate planning, not their financial advisors who may benefit from such arrangements.