← Broker database 2024-07-01
Jeffrey Thomas Higgins Barred for Refusing to Cooperate with FINRA Investigation
According to FINRA, Jeffrey Thomas Higgins was barred from association with any FINRA member in all capacities on July 1, 2024, after he refused to produce information and documents and refused to appear for on-the-record testimony requested by FINRA during an investigation.
The investigation originated from an examination by FINRA following a regulatory tip. Higgins' member firm filed a Form U5 stating that he was discharged based on his notification to the firm that he had been misdirecting client investments and funds and misappropriating client investments and funds to his own use, starting at his prior firm, and that these activities had continued through to the date of termination.
FINRA Rule 8210 requires associated persons to provide information and testimony when requested by FINRA during the course of an investigation. Refusal to cooperate with FINRA investigations is considered a serious violation because it impedes FINRA's ability to fulfill its regulatory mission of protecting investors and maintaining market integrity. When individuals refuse to provide information or testimony, FINRA typically imposes a bar, which permanently prohibits the individual from associating with any FINRA member firm in any capacity.
This case serves as a reminder that cooperation with regulatory investigations is mandatory. Investors should be aware that they can check the background of any registered representative through FINRA's BrokerCheck system, which will show any regulatory actions, including bars. The allegations of misappropriation and misdirection of client funds are extremely serious, and the refusal to cooperate with the investigation suggests an unwillingness to be held accountable for these alleged actions.