← Broker database 2022-05-26
Jared Eli Ellis Suspended for Failing to Disclose Felony Charges
According to FINRA, Jared Eli Ellis was assessed a deferred fine of $5,000 and suspended for five months for willfully failing to timely amend his Form U4 to disclose that he had been charged with four felonies.
Ellis learned that he was charged with a felony for domestic assault but did not disclose the felony charge on his Form U4 until over two years later. On a separate occasion, Ellis was charged with three felonies for domestic assault but did not disclose the charges until over four months after learning of them.
Form U4 is the uniform registration form used by the securities industry to register individuals with regulatory authorities. Question 14 on Form U4 requires registered persons to disclose criminal charges, including felonies. Individuals must amend their Form U4 within 30 days of learning about events that require disclosure.
The disclosure of criminal charges is critical for investor protection. Felony charges, particularly those involving violence like domestic assault, raise serious questions about an individual's character and fitness to work in a position of trust handling other people's money. Firms and regulators need timely information about criminal charges to evaluate whether the individual should continue in a customer-facing role and whether enhanced supervision is needed.
Ellis's delays in disclosure were substantial: over two years for the first charge and over four months for the three subsequent charges. These were not minor oversights but prolonged failures to disclose serious criminal matters. The fact that all four felonies involved domestic assault is particularly concerning because it demonstrates a pattern of alleged violent behavior.
FINRA found the failures to be willful, meaning Ellis knew or should have known about his disclosure obligations but failed to comply. Willful violations are more serious than negligent violations because they demonstrate intentional disregard for regulatory requirements.
For investors, this case illustrates the importance of reviewing a financial professional's Form U4 disclosure record through FINRA BrokerCheck. Criminal charges, especially felonies involving violence, are serious red flags that investors should consider when deciding whether to work with a financial professional. The fact that some representatives fail to timely disclose such charges makes it even more important for investors to periodically check their financial professional's BrokerCheck record for any new disclosures. The suspension is in effect from June 6, 2022, through November 5, 2022.