FINRA’s Department of Enforcement investigated Hermanson and alleged she misappropriated approximately $26,000 from the foundation where she acted as treasurer. Specifically, FINRA contended while treasurer of the foundation, Hermanson issued 16 checks totaling approximately $20,000 and made five cash withdrawals totaling approximately $6,000 from the foundation’s checking account and used the funds for personal expenses without permission. In addition, Hermanson failed to disclose to TransAmerica that she was acting as the foundation’s treasurer as required by firm and industry rules and regulations.
Based upon the foregoing misconduct, FINRA alleged Hermanson violated two FINRA Rules, namely FINRA Rule 3270 and 2010. For example, “[i]t is well established that conversion violates the ‘high standards of commercial honor and just and equitable principles of trade’ required by FINRA Rule 2010.’”
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 or are the victim of investment fraud from dealing with Hermanson, 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.