← Broker database 2023-09-12
Jeffrey Kirkpatrick Suspended for Falsifying Wire Transfer Form and Off-Channel Communications
According to FINRA, Jeffrey Kenneth Kirkpatrick was fined $10,000 and suspended from association with any FINRA member in all capacities for four months for falsifying a wire transfer request form and communicating about firm business outside of approved channels.
Kirkpatrick electronically signed a wire transfer request form at the request of another registered representative and submitted it to his member firm to effectuate his customers' requested transfer of $1 million to a third-party entity's account. Kirkpatrick falsely attested on the form that he had verbally confirmed the amount, timing and payee instructions with the customer, when he in fact had not. Kirkpatrick signed the form without inquiring into the purpose of the wire transfer, and without speaking with either customer before signing and submitting the form to the firm. As a result, Kirkpatrick caused his firm to maintain inaccurate books and records.
Falsifying documents is a serious violation that undermines the integrity of a firm's books and records. Wire transfer forms typically require broker confirmation as a safeguard against fraud and unauthorized transfers. By falsely attesting that he had confirmed the wire transfer details with the customer when he had not, Kirkpatrick circumvented this important control. The $1 million amount involved makes this particularly concerning.
In addition, Kirkpatrick communicated about firm business outside of firm approved channels by using his personal mobile phone to send and receive text messages related to firm securities business. He exchanged text messages with another representative about firm business, including messages concerning the signing and approval of wire transfer requests from client accounts, and one message concerning a customer complaint. Kirkpatrick also attested on a firm compliance questionnaire that all of his investment-related communications were made using only firm approved email addresses, which was false.
Off-channel communications prevent firms from supervising their representatives effectively and prevent regulators from obtaining evidence during investigations. The four-month suspension reflects the seriousness of both the falsification and the off-channel communications violations.