According to FINRA, Richard F. Spettell was fined $2,500 and suspended from association with any FINRA member in all capacities for one month for causing his member firm to maintain inaccurate books and records by changing representative codes for trades.

Spettell had entered into an agreement to service certain customer accounts under a joint representative code that he shared with the estate of a former representative. The agreement specified what percentages of commissions the estate and Spettell would earn on trades placed using the joint representative code. However, when Spettell placed trades in accounts covered by the agreement, he changed the representative code from the joint code to his personal representative code.

Although the firm's system correctly prepopulated the trades with the applicable joint representative code, Spettell manually changed the code to his personal representative code. He mistakenly assumed he had permission to do this based on his understanding of a prior informal arrangement with the former representative, but he did not confirm with the estate that his understanding was correct or that he could change the representative code for these transactions.

As a result, the firm's trade confirmations inaccurately reflected Spettell's personal representative code instead of the joint representative code, and Spettell received higher commissions than he was entitled to receive under the agreement. The firm subsequently reimbursed the estate of the representative for the commission shortfall.

The one-month suspension and $2,500 fine reflect that while Spettell's actions caused inaccurate records and resulted in his receiving excess commissions, he appears to have been mistaken rather than intentionally defrauding the estate. Nevertheless, recordkeeping accuracy is fundamental to securities regulation, and Spettell should have confirmed his understanding and obtained proper authorization before changing representative codes.

For investors, this case illustrates the importance of accurate recordkeeping in the securities industry and the need for representatives to follow firm systems rather than making unauthorized changes. The suspension was in effect from July 17, 2023, through August 16, 2023.