According to FINRA, John Mark Selleh was assessed a deferred fine of $5,000 and suspended for six months in all capacities for assisting a registered representative he previously supervised to provide false information to the representative's new firm during an internal investigation.

Selleh helped the representative draft a written response falsely representing that the representative had invested a customer's assets in a loan. He also helped draft a promissory note to document the purported loan and compose purported meeting notes with the customer. While Selleh did not actually know about the representative's misconduct (which involved stealing the customer's assets), he acted recklessly in assisting given various red flags.

Red flags included the representative's desire to recreate and backdate a purportedly six-year-old promissory note, and material inconsistencies between what the representative told Selleh and information in the purported customer meeting notes. These circumstances should have alerted Selleh that something was seriously wrong.

When the representative was terminated and warned Selleh that he had told his firm Selleh had a copy of the purported promissory note, Selleh initially falsely told his own firm's personnel that he did not have the note and did not help draft it. At a subsequent meeting, Selleh told the truth and produced the document.

This case illustrates that registered persons must not assist others in providing false information to firms, even if they do not have actual knowledge of underlying misconduct. When presented with red flags suggesting misconduct, individuals must refuse to participate in creating false documentation.

The six-month suspension holds Selleh accountable for recklessly assisting in the creation of false documentation and initially lying to his own firm about his involvement.