According to FINRA, Michael Ryan Petruska is facing charges for allegedly failing to amend his Form U4 to disclose that he had been charged with a felony.

A criminal complaint charged Petruska with Indecent Assault and Battery on Child Under Age of 14, a felony under Massachusetts law. While registered with FINRA through his association with a member firm, Petruska learned he had been charged with the felony but allegedly failed to amend his Form U4 to disclose it. FINRA rules require registered representatives to promptly update their Form U4 to disclose criminal charges, regulatory actions, customer complaints, and other specified events.

The Form U4 disclosure system serves as a critical investor protection tool, allowing the public to research the background of financial professionals through BrokerCheck before deciding whether to do business with them. When registered representatives fail to disclose criminal charges or other significant events, they deprive investors of information that could be material to the decision of whether to entrust that individual with their assets.

The alleged willful failure to disclose a serious felony charge is particularly concerning. Investors have a right to know about criminal charges against their financial advisors, especially charges involving serious alleged misconduct. The disclosure requirement ensures transparency and allows investors to make informed decisions about whom they trust with their financial affairs.

It is important to note that this matter is in the complaint stage, and allegations have not been proven. Petruska is entitled to defend against these charges, and no findings have been made regarding the allegations. For investors, this case underscores the importance of regularly checking BrokerCheck to review the disclosure record of financial professionals and ensuring the information is current and complete.