According to FINRA, Shawn Elizabeth Parker was barred from association with any FINRA member in all capacities for converting at least $25,000 from her member firm.
Parker hosted annual training and educational events for approximately 250 clients during the holiday season at a local banquet venue. At the conclusion of each event, the venue issued an invoice detailing the charges incurred, including the costs of food and beverages. Parker paid these invoices and then directed her staff to prepare reimbursement requests to be submitted to the firm, seeking reimbursement from wholesaler contributions that had been provided for the event.
For at least two of the annual events, the expense reports submitted at Parker's direction contained falsified invoices that overstated the total amount of reimbursable expenses incurred at the events. As a result, Parker received at least $25,000 to which she was not entitled. This represents theft from her employer through the submission of fraudulent expense reports.
Parker has since entered into an agreement with the firm to refund the amounts at issue, but the damage to her integrity and trustworthiness cannot be undone. The falsification of expense reports demonstrates dishonesty and a willingness to defraud her employer for personal gain.
Conversion of firm funds through fraudulent expense reporting may not directly harm customers in the same way as theft from client accounts, but it reflects seriously on an individual's character and integrity. Someone who will defraud their employer is also likely to defraud clients when given the opportunity. This is why such conduct results in a bar from the industry.
Investors should understand that integrity is essential in the financial services industry. Representatives who demonstrate dishonesty in any aspect of their work pose a risk to clients. Before working with a financial professional, investors should check FINRA BrokerCheck for any disciplinary actions or terminations related to dishonesty, fraud, or conversion of funds. Such red flags indicate that the individual cannot be trusted with investor money.
