The Financial Industry Regulatory Authority (FINRA) recently announced Daniel B. Irving (Irving) entered into a Letter of Acceptance, Waiver and Consent. The settlement concerns allegations Irving mismarked 105 solicited order tickets as unsolicited trades. As a result, Irving was suspended from the financial industry for one month and subject to a $5,000 fine.
Irving (FINRA CRD No. 4773478) is an associated person registered with FINRA as a general securities representative since 2004. From 2014 to 2018, Irving worked for FSC Securities Corporation (“FSC”). On September 30, 2014, Irving was permitted to resign from FSC for allegations related to unauthorized trading. Irving currently works for Vestech Securities, Inc.
FINRA’s Department of Enforcement investigated Irving’s alleged misconduct and found he mismarked 105 order tickets in five customer accounts as unsolicited when, in fact, the trades were solicited from 2013 to 2014. Irving’s misconduct in misclassifying the trades is significant because potentially liability for sales misconduct is often determined based upon whether a transaction is solicited or unsolicited. In addition, Irving’s misconduct caused FSC’s books and records to be inaccurate in violation of FINRA Rule 4511.
Based upon the foregoing misconduct, FINRA alleged Irving violated FINRA Rules 2010 and 4511. FINRA Rule 4511 is based on the general recordkeeping requirements of NASD Rule 3110(a) and NYSE Rule 440. FINRA Rule 4511 requires firms to preserve for a period of at least six years those FINRA books and records for which there is no specified retention period under the FINRA rules or applicable SEA rules.
Lufrano Law, LLC is a national securities litigation firm and has experience representing investors who have investment disputes with brokers and broker-dealers. Please contact us for a free, no-commitment initial consultation or contact one of our attorneys at (800) 627-2179 to schedule a free consultation or complete our free case evaluator.