According to FINRA, Roger Daniel Follis was fined $10,000 and suspended from association with any FINRA member in all capacities for 45 days for causing his member firm to maintain incomplete books and records by using a personal email account to conduct business with a customer.

Follis sent business-related communications to a firm customer using a personal email account that was not disclosed to or approved by his firm. These emails included investment recommendations and information about the customer's portfolio investments and balances—precisely the types of communications that firms must capture and supervise. Some of the emails also contained complaints by the customer about activity in his account.

The use of off-channel communications creates multiple problems. First, it prevents firms from supervising communications to ensure they comply with securities regulations and firm policies. Second, it results in incomplete books and records, as required communications are not captured by the firm's email retention systems. Third, when customers complain through these unapproved channels, firms may not become aware of potential problems or customer dissatisfaction, preventing timely investigation and remediation.

Compounding the off-channel communications, Follis failed to provide the firm copies of the messages for review or retention. This meant the firm had no record of significant business communications with the customer, including written customer complaints that the firm was required to document and address.

On annual compliance questionnaires, Follis falsely attested that he had followed the firm's policy requiring business-related emails to be transmitted through firm-approved channels. These false attestations meant the firm had no reason to suspect that Follis was conducting business through a personal email account.

Books and records requirements are fundamental to securities regulation. Broker-dealers must make and preserve records of all communications related to their business. These records allow for regulatory examination, supervision of representatives' activities, and documentation in the event of customer complaints or regulatory investigations. When representatives use personal email accounts or other unapproved communication methods for business purposes, they undermine these critical regulatory protections.

Following widespread problems with representatives using text messages, WhatsApp, and other personal communication channels, FINRA and the SEC have emphasized the importance of firms capturing all business-related communications. Major firms have paid tens of millions of dollars in fines for widespread use of off-channel communications by their employees.

The suspension is in effect from January 5, 2026, through February 18, 2026. During this period, Follis cannot function in any registered capacity.

For investors, this case illustrates the importance of conducting investment business through official firm channels. If a representative suggests communicating through personal email or text messages, this should raise concerns about whether the representative is attempting to evade firm supervision.