According to FINRA, Roy Reese was fined $10,000 and suspended from association with any FINRA member in all capacities for nine months for forwarding approximately $12,000 to a third party located overseas despite red flags indicating the funds may have been related to illegal activity.

The findings revealed that Reese agreed to receive money on behalf of a third party in his bank account. His account received a $9,072 wire from the state of Arizona marked as a benefit payment for an individual unknown to Reese. The third party claimed the funds came from the sale of land for gold mining.

Reese withdrew the amount and transferred it to the third party. He later expressed concerns about the transactions' legality in text messages, stating he could not accept funds from improper sources because he worked in a highly regulated profession and did not want to be accused of money laundering or fraud.

Despite these concerns, when the third party revealed that the purported sender was blocked from sending money outside the United States, Reese agreed to receive additional funds after being assured they were legitimate. The state of New York subsequently sent wires totaling $3,218 in unemployment insurance payments for the benefit of another individual unknown to Reese. Despite his previously stated concerns, Reese transferred these funds to the third party as well.

Reese's bank account was eventually frozen and closed by the bank. A bank representative informed him the wires were unemployment funds for the benefit of other individuals. FINRA found that Reese was reckless, or at least negligent, in not knowing that the third party was not entitled to the funds and that they were likely the result of fraud or other illegal activity.

The suspension is in effect from June 16, 2025, through March 15, 2026. This case demonstrates that securities professionals are held to high standards and cannot ignore obvious red flags of potential fraud.