According to FINRA, Sean Morgan Storm Boswick was barred from association with any FINRA member in all capacities for refusing to provide documents and information requested by FINRA in connection with an investigation into the circumstances giving rise to his termination from his member firm.
Boswick's firm submitted a Form U5 disclosing that he was discharged and was under internal investigation for violation of FINRA Rule 3280. In response, FINRA sent a request to Boswick for production of documents and information, including a request that he produce his personal bank account information and statements. Although Boswick provided a partial response to FINRA's request, he did not produce his bank account information and statements at any time.
FINRA Rule 3280 prohibits registered persons from borrowing from or lending to customers except in very limited circumstances. When firms investigate potential violations of this rule, bank account information is often critical evidence to determine whether prohibited lending or borrowing occurred.
By providing only a partial response and refusing to produce his bank account information and statements, Boswick prevented FINRA from fully investigating the allegations against him. Bank records would have been essential evidence to determine whether any prohibited lending or borrowing transactions occurred between Boswick and customers.
The obligation to provide documents requested by FINRA during an investigation is absolute. Registered persons cannot pick and choose which documents to provide; they must produce all requested materials. Even if bank records might contain information that could be embarrassing or damaging, the obligation to produce them remains.
The bar sanction reflects the seriousness of failing to cooperate with a regulatory investigation. When individuals refuse to provide critical evidence, they impede FINRA's ability to protect investors and maintain market integrity. This case serves as a reminder that all registered persons must fully comply with FINRA's requests for information, including personal financial records when they are relevant to an investigation.