According to FINRA, Michael Ryan Petruska has been fined $5,000 and suspended from association with any FINRA member for one month for willfully failing to amend his Form U4 to disclose a felony charge.

After his arrest and arraignment, Petruska did not contact his member firm to inform them of the pending criminal charge and did not update his Form U4 as required. By his own testimony, Petruska did not report the charge at least in part because he was afraid his firm would terminate him. He also believed the charge might be reduced or dismissed.

When his firm became aware of the charges and approached him, Petruska reported his arrest but did not disclose the nature of the allegations or that the charge was a felony. He never updated his Form U4 prior to leaving the firm.

Petruska was ultimately exonerated of the felony charge. However, the disclosure requirement exists regardless of the outcome. Investors and employers have a right to know about pending charges, and the obligation to disclose cannot be avoided by hoping charges will be dismissed.

Form U4 disclosure requirements ensure transparency about financial professionals' backgrounds. Investors can review this information through FINRA's BrokerCheck to make informed decisions about who manages their money.