FINRA’s Department of Enforcement initiated an investigation into William’s alleged misconduct. FINRA specifically investigated whether Williams engaged in sales practice violations, including unsuitable investment recommendations, unauthorized transactions, and possible conversion of $1,000,000 from 2004 to 2014. FINRA’s investigation was likely sparked by a customer complaint and employment termination. In connection with this investigation, FINRA sent Williams a request to provide documents and information pursuant to FINRA Rule 8210. According to FINRA, Williams failed to cooperate with the investigation.
Based upon the foregoing alleged misconduct, FINRA asserted Williams 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, Williams 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 Williams while employed by NEXT 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 or complete our free case evaluator.