According to FINRA, James Michael Green was barred from association with any FINRA member in all capacities for refusing to provide documents and information requested by FINRA. The investigation originated from FINRA's review of Green's Form U5, which his member firm filed stating that he executed an order in a client account without speaking to the client.
Executing orders in customer accounts without proper authorization is a serious violation that can constitute unauthorized trading. Brokers are generally required to obtain customer authorization before executing transactions, with limited exceptions for accounts that have been specifically approved for discretionary trading with proper written authorization. When a firm terminates a representative and discloses on Form U5 that the termination related to executing unauthorized orders, it signals potential harm to customers and warrants regulatory investigation.
Green's refusal to provide documents and information to FINRA prevented the regulator from fully investigating the circumstances of the unauthorized order and determining whether other customers were similarly affected. FINRA's investigative authority is essential to its mission of protecting investors, and registered individuals have a fundamental obligation to cooperate with such investigations. By refusing to provide requested materials, Green demonstrated an unwillingness to be accountable for his actions.
The bar imposed on Green effectively ends his career in the securities industry unless and until it is lifted. This severe sanction reflects FINRA's view that cooperation with investigations is not optional—it is a prerequisite for working in the industry. For investors, this case highlights the importance of monitoring account activity carefully and immediately reporting any unauthorized transactions to both the firm and regulators. Investors should review account statements promptly and question any transactions that were not explicitly authorized. Additionally, investors can protect themselves by working only with registered professionals whose backgrounds have been verified through FINRA's BrokerCheck system. Representatives who have been barred from the industry, particularly for refusing to cooperate with investigations, should be avoided entirely.
