According to FINRA, Robert Torres was suspended from association with any FINRA member in all capacities for two months on July 11, 2024, for willfully failing to timely amend his Form U4 to disclose that he had been charged with a felony. In light of Torres' financial status, no monetary sanction was imposed.

After being arrested, a document was filed charging Torres with Aggravated Assault, a Third Degree Felony, and Criminal Mischief, a Class B Misdemeanor. Torres states that he received both documents; however, he failed to amend his Form U4 within 30 days of learning about the charges and only reported them approximately two-and-a-half months later. All charges against Torres were subsequently dismissed.

Form U4 is the uniform application for securities industry registration that must be filed by individuals seeking to engage in the securities business. It requires disclosure of various background information, including criminal charges and convictions. FINRA rules require registered persons to promptly update their Form U4 when certain events occur, including being charged with any felony or certain misdemeanors. This requirement exists to ensure that firms and investors have current and accurate information about the backgrounds of registered representatives.

The requirement to disclose criminal charges applies regardless of the ultimate disposition of the charges. Even though all charges against Torres were ultimately dismissed, he was still required to disclose them within 30 days of being charged. The willful failure to make timely disclosures undermines the integrity of the registration system and prevents firms from properly supervising their representatives.

The two-month suspension, in effect from August 19, 2024, through October 18, 2024, demonstrates that prompt and accurate disclosure is a fundamental obligation. Investors can review the disclosure information for any registered representative through FINRA's BrokerCheck system.