According to FINRA, Fedelyne Cemoin was suspended for four months for willfully failing to amend her Form U4 to disclose that she had been charged with a felony.

Cemoin was charged with felony public assistance fraud. She knew that she had been charged with a felony but did not amend her Form U4 to disclose the felony charge within 30 days of learning of it. In fact, Cemoin did not amend her Form U4 to disclose the felony charge at any point prior to resigning from her member firm over four years later. Additionally, Cemoin submitted compliance questionnaires to her firm that falsely stated she had not been charged with any felony.

This case involves not just a failure to disclose but active misrepresentation. By submitting compliance questionnaires falsely stating she had not been charged with any felony when she knew she had been charged, Cemoin went beyond passive non-disclosure to affirmatively lying to her firm. This demonstrates a deliberate effort to conceal material information rather than an inadvertent oversight.

The charge of public assistance fraud involves obtaining government benefits through false statements or other fraud. For someone in the financial services industry, such a charge raises serious concerns about honesty and integrity. The fact that Cemoin then concealed this charge for over four years while repeatedly certifying that she had no felony charges compounds the dishonesty.

Investors rely on Form U4 disclosures to learn about their financial professional's background, including criminal charges. When registered persons not only fail to disclose charges but affirmatively lie about them on compliance questionnaires, they demonstrate a willingness to deceive that should disqualify them from positions of trust. Investors should check FINRA BrokerCheck regularly and should be concerned if a financial professional has a history of failing to disclose required information.