According to FINRA, Patrick Allen English was barred from association with any FINRA member in all capacities for refusing to appear for on-the-record testimony requested by FINRA during an investigation based on allegations disclosed in a Form U5 filed by his member firm.
The Form U5 disclosed that English's firm had permitted him to resign because he used text messages to exchange trading directions in violation of firm policies and procedures, improperly exercised discretion in client accounts, and reported to clients that certain unplaced trades had been executed. Although English initially cooperated with FINRA's investigation by providing documents and information, he later ceased cooperating and refused to appear for testimony.
The allegations underlying FINRA's investigation are extremely serious. Using unapproved text messages to discuss trading prevents firms from supervising communications and maintaining required records. Improper exercise of discretion—trading without proper authorization—violates customer trust and regulatory requirements. Most seriously, telling clients that trades were executed when they were not constitutes fraud and can cause significant customer harm if clients make decisions based on false account information.
English's initial cooperation followed by refusal to testify prevented FINRA from fully investigating these serious allegations and determining their full scope. His refusal to appear for testimony is itself a violation of FINRA Rule 8210, which requires associated persons to cooperate with investigations. The combination of serious underlying allegations and refusal to testify warrants permanent removal from the industry.
Investors should immediately report any broker who claims trades were executed when they were not, as this constitutes fraud. Customers should carefully review confirmations and account statements to verify all trades actually occurred as represented. Communications with brokers should be conducted through firm-approved channels to ensure proper supervision and record retention. FINRA BrokerCheck allows investors to review a broker's disciplinary history, including bars for failure to cooperate. Individuals who refuse to answer questions from regulators should not be trusted with investor assets, as their refusal suggests they have something to hide.
