← Broker database 2023-04-14
Bradley Jones Suspended Two Months for Failing to Disclose IRS Tax Lien
According to FINRA, Bradley Samuel Jones was assessed a deferred fine of $5,000 and suspended for two months for willfully failing to timely disclose an Internal Revenue Service tax lien on his Form U4.
The IRS filed a tax lien against Jones for $47,611 and mailed notice of it to his residential address. Although Jones was required to disclose the tax lien by filing an amended Form U4 within 30 days of receiving notice, he willfully failed to do so until over two years later. In addition, Jones inaccurately certified in an attestation for his member firm that he did not have any undisclosed liens against him in the past 12 months.
Form U4 disclosures are critical to the regulatory system because they provide information about a registered person's financial condition and regulatory history that firms and regulators use to assess fitness for registration. Tax liens can indicate financial problems that might create incentives for misconduct. The requirement to disclose liens within 30 days ensures that firms and regulators have current information to identify potential risks.
Jones' failure to disclose was willful, meaning he knew of the obligation and consciously failed to comply. The false attestation to his firm compounded the violation by affirmatively misrepresenting his disclosure status. The two-year delay was substantial and deprived his firm and regulators of important information about his financial condition.
This case reinforces that registered persons must promptly and accurately disclose all reportable events on Form U4, including tax liens. Investors should understand that Form U4 disclosures are publicly available through BrokerCheck and provide important information for evaluating financial professionals. Failures to disclose raise concerns about honesty and reliability.