According to FINRA, Jeffrey Kenneth Galvani and Stuart A. Jeffery were both permanently barred from association with any FINRA member firm in January 2026, following a FINRA Office of Hearing Officers (OHO) decision that became final. The sanctions were based on findings that both individuals failed to provide on-the-record testimony requested by FINRA in connection with an investigation into their roles with outside entities that provided services to customers who traded low-priced securities, commonly known as penny stocks, and their disclosures to their member firm about those activities.Penny stocks—typically defined as shares of small companies trading at low prices, often outside major exchanges—are a frequent vehicle for fraud and manipulation. FINRA's investigation sought to examine what roles Galvani and Jeffery played with entities that provided services to penny stock traders, and whether they had properly disclosed those activities to their employer firm as required by FINRA rules. Both individuals refused to cooperate with FINRA's request for on-the-record testimony, which FINRA treats as a fundamental obligation for all registered persons.FINRA Rule 8210 requires registered persons and associated persons of member firms to provide information, documents, and testimony requested by FINRA in connection with its regulatory investigations. Refusing to comply with a Rule 8210 request is itself a violation of FINRA rules and typically results in a permanent bar from the industry—as it did here. Because both individuals refused to testify, FINRA was unable to fully investigate the underlying conduct involving penny stock services and disclosure obligations.For investors, this case is a reminder that FINRA's ability to investigate potential misconduct depends on the cooperation of registered persons. When individuals refuse to participate in examinations, FINRA's only recourse is a permanent bar, which at least ensures that those individuals cannot continue to work in the securities industry. Investors with accounts at firms where a broker has been barred should review their account history and contact the firm's compliance department with any concerns. FINRA BrokerCheck is a free resource that can be used to check the regulatory history of any registered broker or firm.