← Broker database 2026-03-30
William Steven Cooke Barred for Refusing to Cooperate with FINRA Investigation into Unauthorized Trades
According to FINRA, William Steven Cooke (CRD #2107758) of Jacksonville, North Carolina, was barred from association with any FINRA member in all capacities after refusing to appear for on-the-record testimony requested by FINRA in connection with an investigation.
The AWC was issued on March 30, 2026, with Cooke consenting to the sanction and findings without admitting or denying the underlying allegations. The investigation originated from FINRA's review of a Form U5 filed by Cooke's member firm disclosing that he was discharged because he entered unauthorized trades in his wife's individual retirement account and then signed her name to documents to move the resulting cash from the IRA to a joint account. The disclosure noted that Cooke ultimately repaid the sums taken.
The underlying conduct alleged in the Form U5 represents multiple layers of potential misconduct: entering trades in an account without authorization, and then forging a signature on transfer documents. The fact that the amounts were repaid does not undo the unauthorized conduct or eliminate FINRA's interest in investigating it. Regulators must understand not only what happened but how it happened and whether similar conduct may have occurred with other accounts or at other firms.
FINRA requested on-the-record testimony from Cooke to gather the facts of this situation. His refusal to appear constitutes a separate and independent violation of FINRA Rule 8210 and results in a permanent bar from the securities industry.
This case highlights the importance of account security for investors. Unauthorized transactions in brokerage accounts — even if perpetrated by family members — constitute a serious breach of account integrity. Investors should regularly review account statements and transaction confirmations and should be aware that they are entitled to authorize who can direct activity in their accounts through formal account agreements, not informal arrangements. Any unauthorized activity should be reported promptly to the firm and, if unresolved, to FINRA.