According to FINRA, Richard Martel Funderburk was barred from association with any FINRA member in all capacities for providing false information about his examination results.
After failing the Securities Industry Essentials (SIE) exam, Funderburk sent an instant message to his supervisor falsely informing her that he had passed the exam. He then provided her with a fabricated SIE exam score report reflecting a passing score when he had actually failed. This represents a deliberate attempt to deceive his employer about meeting basic qualification requirements for the securities industry.
The SIE exam tests fundamental knowledge of the securities industry, including products, markets, regulatory agencies, and prohibited practices. It is a prerequisite for individuals seeking to become registered representatives. Attempting to deceive an employer about passing this exam demonstrates both dishonesty and a willingness to work in a regulated capacity without meeting minimum qualification standards.
Funderburk's conduct is particularly concerning because it involves the fabrication of official documents. Creating a fake exam score report requires deliberate effort and planning, and sending it to a supervisor as if it were genuine demonstrates a calculated attempt at fraud. Such conduct strikes at the heart of the qualification and registration system designed to ensure that only qualified individuals serve investors.
The permanent bar from the securities industry is appropriate given the dishonest nature of Funderburk's conduct. The securities industry depends on trust, and individuals who fabricate documents and lie to supervisors about basic qualifications cannot be trusted to act honestly with investors. For investors, this case reinforces the importance of working with properly registered representatives. FINRA's BrokerCheck allows investors to verify that financial professionals have passed required examinations and hold appropriate registrations. A bar means Funderburk cannot work for any FINRA member firm unless he petitions for re-entry after at least two years, though reinstatement after such dishonest conduct would be unlikely.
