According to FINRA, Richard Lynn Goldston (CRD #4176824), a registered representative based in Fort Scott, Kansas, was barred from the securities industry effective January 16, 2024, for failure to provide information or keep information current pursuant to FINRA Rule 9552(h). The associated FINRA Case number is 2023078179701.
FINRA Rule 9552(h) is a provision that allows FINRA to permanently bar individuals from the securities industry when they fail to respond to requests for information during regulatory investigations or examinations. The rule recognizes that FINRA's ability to protect investors depends on the full cooperation of all registered individuals. When a broker or registered representative fails to provide requested information, FINRA treats this as a serious breach of the individual's obligations and may impose the ultimate sanction of a permanent industry bar.
The obligation to cooperate with FINRA is not merely a procedural requirement. It is a fundamental condition of holding a securities license. When individuals register with FINRA, they consent to the jurisdiction of the organization and agree to comply with its rules, including the requirement to respond to information requests. This agreement forms the basis of the self-regulatory model that governs the U.S. securities industry, and violations of this basic obligation are taken very seriously.
In the case of Richard Lynn Goldston, the bar indicates that FINRA made one or more requests for information and that Goldston failed to provide the requested information within the timeframes established under Rule 9552. The case number suggests the investigation originated in 2023, meaning the progression from investigation to bar occurred relatively quickly, which may indicate that Goldston made no effort to respond to FINRA's inquiries.
For investors, especially those in the Fort Scott, Kansas area who may have worked with Goldston, this bar has immediate practical implications. Goldston is now permanently prohibited from conducting securities business through any FINRA member firm. Investors who had accounts with Goldston should ensure their assets have been properly transferred and should review past transactions for any irregularities. As always, investors are encouraged to use FINRA's free BrokerCheck tool to research the background and disciplinary history of any current or prospective financial professional. This simple step can help investors identify potential red flags before entrusting their hard-earned money to a broker or adviser.
