FINRA’s Department of Enforcement initiated an investigation into Harris’ alleged misconduct. Specifically, FINRA attempted to investigate whether Harris exercised discretion in non-discretionary customer accounts without prior written authorization. Under FINRA rules, it is illegal and unethical to execute discretionary trades in a customer’s non-discretionary account.
In connection with this investigation, FINRA sent Harris a request to provide documents and information in connection with the investigation. According to FINRA, Harris acknowledged receipt of FINRA’s Rule 8210 request; yet, he failed to cooperate with FINRA’s investigation.
Based upon the foregoing alleged misconduct, FINRA asserted Harris 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, Harris failed to provide testimony 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 Harris while Ladenburg Thalman employed him as a general securities representative, 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.