← Broker database 2023-06-14
Colin Jeremiah Healy Suspended One Year for Submitting Personal Expenses for Reimbursement
According to FINRA, Colin Jeremiah Healy was assessed a deferred fine of $10,000 and suspended from association with any FINRA member in all capacities for one year for improperly using his member firm's funds by submitting personal expenses for reimbursement as business expenses.
Part of Healy's work involved meeting business contacts at private clubs, and these clubs charged Healy's corporate credit card for all charges incurred during his time there. Healy incurred personal expenses at these clubs totaling $6,139.28, which were charged to his corporate credit card along with legitimate business expenses. These personal expenses included items such as $277.31 for "pool lessons" and $360 for "tennis clinics."
Healy then submitted the charges from the clubs, which included both personal and business expenses, to the firm for reimbursement as business expenses. The firm reimbursed Healy for the personal expenses, effectively allowing Healy to convert company funds to his personal use through misrepresentation.
This conduct constitutes misuse of firm funds through false expense reporting. While the dollar amount may not be enormous, the conduct demonstrates dishonesty and a willingness to take firm money under false pretenses. The inclusion of clearly personal items like pool lessons and tennis clinics in business expense reports suggests either brazen disregard for the distinction between personal and business expenses, or hope that the charges would not be scrutinized.
The one-year suspension reflects the dishonest nature of the conduct. False expense reporting demonstrates a lack of integrity that is fundamentally incompatible with the trust required in the securities industry. While the dollar amount was approximately $6,139, the conduct shows a willingness to deceive one's employer for personal gain.
For investors, this case illustrates that integrity matters in the securities industry. Representatives who will deceive their own firms about expenses may be willing to deceive customers about investments. Investors should research the backgrounds of financial professionals through FINRA's BrokerCheck before entrusting them with investment decisions. The suspension is in effect from June 20, 2023, through June 19, 2024.