FINRA’s Department of Enforcement initiated an investigation into Hornyak’s alleged misconduct concerning possible mishandling of customer accounts. Specifically, FINRA investigated whether Hornyak engaged in discretionary trading, unauthorized trading and unsuitable investment recommendations and short-term trading of Unit Investment Trusts (“UITs”). In connection with this investigation, FINRA sent Hornyak a request for on-the-record testimony pursuant to FINRA Rule 8210. According to FINRA, Hornyak 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 Hornyak 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, Hornyak 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 lost money investing with Hornyak while he was employed by Stifel Nicolas, 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.