← Broker database 2022-10-04
Stacee Lei Bradley Suspended for Failing to Disclose Felony Charges
According to FINRA, Stacee Lei Bradley was fined $5,000 and suspended for six months after she willfully failed to disclose on her Form U4 that she had been charged with felonies for grand larceny and falsifying business records.
The Form U4 (Uniform Application for Securities Industry Registration or Transfer) is the fundamental disclosure document that every securities industry professional must file and keep current. It requires disclosure of various matters including criminal charges, regulatory actions, customer complaints, and financial issues. This information is critical because it helps firms, regulators, and investors assess an individual's fitness to work in an industry that requires trust and integrity.
Bradley's violations were particularly serious because they were willful. After learning of the felony charges against her, she filed a Form U4 for the purpose of registering with FINRA through association with a member firm. When asked whether she had ever been charged with any felony, she falsely answered no. This false statement meant that her firm, FINRA, and potentially customers were unaware of the serious criminal charges she faced.
The charges themselves - grand larceny and falsifying business records - are directly relevant to fitness to work in the securities industry. Grand larceny involves theft of significant value, while falsifying business records involves making false entries in business documents to conceal wrongdoing. Both offenses raise serious questions about an individual's honesty and integrity.
Bradley did not disclose the felony charges until several years later, meaning she worked in the industry for years while her Form U4 contained materially false information. This concealment prevented her firm from making an informed decision about her employment and prevented FINRA from properly evaluating her registration.
The six-month suspension and $5,000 fine reflect the seriousness of willfully providing false information on Form U4. For investors, this case highlights the importance of checking a broker's background through FINRA BrokerCheck, which relies on accurate Form U4 disclosures. It also demonstrates that FINRA takes disclosure violations seriously and will sanction those who attempt to hide relevant information.