FINRA’s Department of Enforcement initiated an investigation into Cross’ alleged misconduct. Specifically, FINRA’s investigation concerned a customer complaint against Cross for breach of contract, fraud, conversion, and negligence related to a collateralized bond obligation. Once the investigation was initiated, FINRA then examined Cross’ other alleged misconduct, including outside business activities, financial reporting obligations, and unapproved customer loans.
In connection with this investigation, FINRA sent Cross a request to provide on-the-record testimony pursuant to FINRA Rule 8210. According to FINRA, Cross acknowledged receipt of FINRA’s Rule 8210 requests; yet he failed to cooperate with FINRA’s investigation.
Based upon the foregoing alleged misconduct, FINRA asserted Cross violated FINRA Rules 2010 and 8210. Specifically, FINRA Rule 8210 authorizes FINRA, in the course of its investigations, to require persons associated with a FINRA member to “provide information orally, in writing, or electronically . . . with respect to any matter involved in the investigation...” Here, Cross failed to provide information in response to FINRA’s request, thereby violating FINRA Rule 8210.
Lufrano Law, LLC is a national securities litigation firm and has experience representing investors who have investment disputes with brokers and broker-dealers. If you suffered investment damages with Cross while employed by Allstate Financial, you may be able to recover your losses through FINRA arbitration. Our firm only receives a fee if you recover money. Please contact one of our attorneys at (800) 627-2179 to schedule a free consultation.