According to FINRA, Sam Calvin Nevels was fined $10,000 and suspended from association with any FINRA member in all capacities for four months for improperly taking confidential and proprietary information from his firm in anticipation of leaving for a new firm and for falsifying information in the firm's contact management system.

In anticipation of leaving his member firm for a new firm, Nevels improperly accessed and removed confidential and proprietary information from the firm's systems, including nonpublic information about the firm's customers. Nevels sent unencrypted emails to his personal email address containing institutional client information, including contact lists generated from the firm's customer contact system, presentations made to customers, and details of transactions customers were considering.

Nevels also printed and retained documents and took five photographs of information displayed on the firm's computer system screens and four screenshots of firm emails. Three of these images contained client contact information, and one included details of a firm investment product. Additionally, Nevels and another registered representative who left the firm with him gathered and removed confidential and proprietary information from the firm, including materials created by other firm employees.

These actions violated the firm's policies and internal ethics and compliance standards. Firms have legitimate interests in protecting confidential customer information and proprietary business information. Customer lists, contact information, and details about customer relationships represent valuable business assets that firms develop through investment of time and resources. When departing representatives take this information, it can facilitate customer solicitation and provides unfair competitive advantages.

Beyond the improper taking of information, Nevels caused his firm to maintain inaccurate books and records by falsifying information in the firm's contact management system. Nevels changed client contact data, which caused inaccuracies in the firm's contact management system. In each instance where Nevels changed a client's contact information, the new information was incorrect.

The falsification of client contact information appears to have been a deliberate strategy to make it more difficult for the firm to reach clients before Nevels and his departing colleague could contact them from their new firm. By providing incorrect contact information, Nevels could delay the firm's ability to service its clients and potentially facilitate improper customer solicitation.

Books and records requirements apply not just to trading records but also to customer information maintained by firms. Deliberately falsifying customer contact information violates these record-keeping requirements and undermines the firm's ability to service customers appropriately.

The suspension is in effect from January 5, 2026, through May 4, 2026. During this four-month period, Nevels cannot function in any registered capacity.

For investors, this case illustrates problems that can arise when representatives change firms. While representatives have rights to continue relationships with customers who choose to follow them, they do not have rights to take confidential firm information or falsify firm records.