According to FINRA, James Tri Truong was fined $5,000 and suspended from association with any FINRA member in all capacities for four months for willfully failing to timely amend his Form U4 to disclose that he had been charged with a felony.

While Truong was associated with a member firm, the District Attorney of the County of Santa Clara (California) filed a felony complaint against him with the Superior Court. Truong became aware of the felony charge and was required to amend his Form U4 within 30 days to disclose the charge; however, he did not disclose it on his Form U4 until months later. In addition, Truong falsely stated on an annual compliance questionnaire that he had no arrests that had not been disclosed to the firm.

Form U4 disclosure requirements exist so that firms and investors can make informed decisions about whether to employ or work with a registered representative. Felony charges are particularly important disclosures because they may indicate unfitness for a position of trust handling customer assets. Truong's willful failure to timely disclose the felony charge and his false attestation on the compliance questionnaire demonstrate a lack of candor that warranted significant disciplinary action.