← Broker database 2024-07-09
Carnell Moore Suspended for Undisclosed Outside Business Activity and Document Tampering
According to FINRA, Carnell Moore was assessed a deferred fine of $10,000 and suspended from association with any FINRA member in all capacities for four months on July 9, 2024, for failing to provide notice to his member firm that his involvement in an outside business activity exceeded his prior disclosure and for causing his firm to maintain inaccurate books and records.
Moore disclosed to the firm that he was an officer of a non-profit that sponsored youth sports activities and that his activities related to furthering the non-profit's mission of providing children with sports equipment, apparel, and league sponsorships. However, Moore later expanded the scope of his activities for the non-profit by soliciting firm customers to establish donor-advised funds to be operated by the non-profit. This expansion significantly changed the nature of his involvement and should have been disclosed to the firm.
Additionally, Moore caused his firm to maintain inaccurate books and records by adding information to documents after obtaining customer signatures. After sending blank documents to firm customers for signatures, Moore, with the customers' knowledge, completed the documents before submitting them to the firm. These documents included address/email change request forms, new account forms, securities purchase agreements, and wire authorization forms, including for a customer with disabilities that made it difficult to complete forms. While none of the customers complained and none of the transactions were unauthorized, this practice created inaccurate records that did not reflect the actual state of the documents when signed.
This case illustrates the importance of providing complete and timely disclosures to firms about outside business activities and maintaining accurate books and records. The four-month suspension, in effect from July 15, 2024, through November 14, 2024, reflects the seriousness of these violations.