FINRA’s Department of Enforcement initiated an investigation into Warner’s alleged misconduct. Specifically, FINRA’s investigation concerned allegations Warner offered and sold a customer a time certificate of deposit, which purported to represent and investment in an FDIC insured interest bearing account. However, FINRA alleged that instead of purchasing the aforementioned investment, Warner misappropriated the client’s investment funds and deposited the funds into his personal account. In connection with this investigation, FINRA sent Warner a request to provide on-the-record testimony pursuant to FINRA Rule 8210. According to FINRA, Warner 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 Warner 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, Warner 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 Warner while employed by Questar Capital, 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.