According to FINRA, Integrity Brokerage, LLC was fined $44,938 after an Office of Hearing Officers decision became final on January 3, 2022.

The firm was found in violation of securities rules by improperly allowing an individual who was subject to a statutory disqualification to associate with the firm and engage in securities business without proper registration. FINRA had previously denied the firm's Membership Continuance Application (MC-400) seeking permission for this disqualified individual to associate with the firm. Despite this clear prohibition, the firm's owner ignored FINRA's initial warning and implemented a plan to evade the prohibition.

More than six months after the application was denied, the firm sent a letter to customers stating that the disqualified individual would not be their official registered representative but would continue generating investment ideas for them. The letter described these changes as "semantics" and obscured the true nature of the situation - that FINRA had denied approval for the disqualified individual to speak with customers about securities and their portfolios.

This case highlights the importance of firms complying with FINRA's statutory disqualification process. When FINRA denies permission for a disqualified individual to work in the securities industry, firms must respect that decision. Attempting to circumvent these prohibitions through creative arrangements puts investors at risk and undermines the regulatory framework designed to protect them.

Investors should verify that their financial advisors are properly registered and not subject to disqualifications. You can check an advisor's background using FINRA's BrokerCheck system, which displays registration status and disciplinary history.