According to FINRA, Gregory Alan Corrie (CRD #1982814), a former registered representative based in Meridian, Idaho, was barred from association with any FINRA member firm in all capacities. The bar was issued on August 20, 2024, through an Acceptance, Waiver, and Consent (AWC) agreement under FINRA Case #2023078217101.
Corrie was found in violation of FINRA rules after he refused to produce information and documents requested by FINRA in connection with its investigation into the circumstances giving rise to the Form U5 filed by his former member firm. The Form U5, formally known as the Uniform Termination Notice for Securities Industry Registration, is a required regulatory filing that discloses the reasons for a registered representative's departure from a firm.
In Corrie's case, the Form U5 disclosed that his firm had terminated him for excessive use of Unit Investment Trust (UIT) products. A Unit Investment Trust is a type of investment product that holds a fixed portfolio of securities, typically bonds or stocks, for a set period. UITs have defined termination dates, at which point the holdings are sold and proceeds are returned to investors. While UITs can be appropriate investment vehicles for certain investors, excessive use of UITs raises significant regulatory concerns.
Excessive UIT trading, sometimes referred to as UIT rolling, occurs when a broker repeatedly recommends that clients purchase UITs, then sell or surrender them before maturity to purchase new UITs. This pattern generates commissions for the broker on each new purchase while subjecting the customer to unnecessary sales charges and potentially undermining the buy-and-hold strategy that UITs are designed to provide. FINRA has identified excessive UIT switching as a priority concern and has brought numerous enforcement actions related to this practice.
The seriousness of the underlying allegations was further underscored when Corrie's former firm filed an amended Form U5 disclosing that its internal review had concluded and that it had made remediation payments related to Corrie's trading activity. The fact that the firm made remediation payments indicates that customers suffered financial harm as a result of Corrie's conduct and that the firm took steps to compensate those affected.
When FINRA requested information and documents to investigate these matters, Corrie refused to cooperate. Under FINRA Rule 8210, associated persons are obligated to comply with FINRA's investigative requests. Refusal to do so is a standalone violation that typically results in a permanent bar from the industry.
Without admitting or denying the findings, Corrie consented to the sanction and the entry of findings against him. He is now permanently prohibited from working with any FINRA-registered broker-dealer.
Investors should be cautious about brokers who frequently recommend selling existing investments to purchase new ones, particularly when the products involved carry sales charges. Frequent turnover in UIT holdings or similar products may indicate that a broker is prioritizing their own commissions over the client's financial interests. Reviewing trade confirmations and account statements regularly can help identify patterns of excessive trading.
