← Broker database 2023-04-20
Christopher Tranchina Barred for Breaking Into Former Employer’s Office and Taking Files
According to FINRA, Christopher Peter Tranchina was barred from association with any FINRA member in all capacities for acting unethically by gaining unauthorized access to member firm information by breaking into his former employer's office after business hours and removing customer files. Tranchina appealed the decision to the SEC.
The National Adjudicatory Council found that Tranchina knew his former employer had terminated him and prohibited him from entering its office. He also knew his former employer claimed ownership and the exclusive right to possess almost all customer files in his former personal office. Concerned that his former employer's refusal to turn over most customer files would hurt his business, Tranchina waited until after normal business hours, forcibly entered the office, and removed files he feared his former employer would not provide to him.
Additionally, Tranchina willfully failed to disclose on his Form U4 that he had been charged with a misdemeanor involving wrongful taking of property. The NAC assessed but did not impose a $10,000 fine and six-month suspension in light of the bar. The NAC dismissed an allegation of conversion, finding that Tranchina acted unethically but did not decide whether his conduct constituted conversion.
This case demonstrates that even when individuals believe they have legitimate claims to property or information, they cannot take the law into their own hands by breaking into offices and taking materials. The proper remedy is to pursue legal channels, not forcible entry. The failure to disclose criminal charges on Form U4 compounds the misconduct. Investors should understand that registered persons must act ethically and comply with disclosure requirements even when they disagree with their former employer's actions.