According to FINRA, Vandalia Pizarro was assessed a deferred fine of $5,000 and suspended from association with any FINRA member firm for two months for willfully failing to timely amend her Form U4 to disclose a criminal charge and plea.

Pizarro was charged with one count of misdemeanor petit theft. Although she was aware of the charge, she did not amend her Form U4 to disclose it within the required 30-day period. She ultimately pled nolo contendere (no contest) to the charge but did not disclose either the initial charge or the plea until almost eight months after the initial charge.

Form U4 is the uniform registration form that securities professionals must complete and keep current. It requires disclosure of criminal charges, not just convictions. This disclosure requirement exists so that firms and regulators can evaluate whether a person is fit to work in the securities industry and so that investors can make informed decisions about their financial professionals.

The willful failure to make timely disclosures is a serious matter because it deprives both the firm and the investing public of material information. A nolo contendere plea, while not an admission of guilt, still resolves a criminal charge in a manner that must be disclosed.

The two-month suspension reflects both the failure to disclose and the extended delay in making the required amendments.