According to FINRA, Nancy Kimball Mellon was barred from association with any FINRA member in all capacities following a National Adjudicatory Council decision upholding findings and sanctions imposed by the Office of Hearing Officers.

Mellon converted $4,300 from her member firm, including $2,800 from her Financial Advisor Expense Management System account and $1,500 from a system for expense reimbursement. She falsified expense reports by directing her assistant to enter four false reports claiming she paid $3,800 to a college football bowl game when she had not. Mellon used a dishonored check as evidence of payment despite knowing it had not cleared, and sought reimbursement of $500 more than the invoice amount. By submitting false expense reports, Mellon caused the firm to maintain inaccurate books and records.

Most egregiously, Mellon provided false and misleading information to FINRA during its investigation. She purposefully took steps to prevent production of bank statements requested by FINRA, requesting that her bank provide a letter denying production. Mellon falsely responded that statements were unavailable and claimed the invoice was not paid by check. FINRA gave multiple opportunities to correct her misrepresentations, but she continued falsely claiming she could not access bank statements. She provided a partial email communication with her bank, taken out of context, to mislead FINRA. The bank confirmed it would provide statements if requested, but Mellon had not asked. She knew producing statements would reveal she had not paid the invoice before the firm reimbursed her.

Conversion of firm funds and falsifying expense reports are serious violations, but providing false information to obstruct an investigation is particularly egregious. The permanent bar protects investors from an individual who stole from her firm, falsified records, and then lied to cover it up.