← Broker database 2022-07-26
Brian Harold Young Suspended for Failing to Disclose Three Felony Charges
According to FINRA, Brian Harold Young was assessed a deferred fine of $5,000 and suspended from association with any FINRA member in all capacities for six months for willfully failing to timely amend his Form U4 to disclose three felony charges and a felony guilty plea.
Young was indicted by a grand jury on three felonies: one count of aggravated assault and two counts of endangerment. He received written notice of the indictment but willfully failed to amend his Form U4 to disclose the felony charges within 30 days as required. Later, Young pled guilty to a felony charge, which rendered him statutorily disqualified from associating with a member firm. He was required to amend his Form U4 to disclose the felony guilty plea within 10 days but willfully failed to do so. Young finally amended his Form U4 to disclose the felony conviction and the previous three felony charges when he resigned from his firm, four days after the deadline for disclosing the conviction and over a year after the deadline for disclosing the charges.
Young's violations were aggravated by false statements on annual compliance questionnaires where he falsely stated that he had not been charged with any felonies. These questionnaires are critical compliance tools that firms rely upon to maintain accurate records and ensure proper supervision.
The felony charges and guilty plea were material facts that an employer or customer would want to know about a representative. Aggravated assault and endangerment charges raise serious concerns about a person's judgment, temperament, and trustworthiness. A felony conviction creates statutory disqualification, meaning Young could not legally work in the securities industry without special permission from FINRA, which his firm and FINRA were unable to address because Young concealed the conviction.
This case demonstrates the serious consequences of failing to disclose criminal charges and convictions. The willful nature of Young's failures and his false compliance certifications warranted significant sanctions. Investors can protect themselves by regularly checking their brokers' backgrounds through FINRA's BrokerCheck system, which should reflect all required disclosures including criminal matters.