FINRA’s Department of Enforcement initiated an investigation into Dunn’s alleged misconduct to ascertain whether he borrowed $40,000 from one of his customer’s and deposited the funds in his personal bank account. In connection with this investigation, FINRA sent Dunn two requests seeking documents and information for the investigation. According to FINRA, Dunn 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 Dunn 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, Dunn failed to provide testimony in response to FINRA’s request, thereby violating FINRA Rule 8210. FINRA has very little tolerance for uncooperative members and promptly barred Dunn from the financial industry.
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