John Michael Bannon, a former general securities representative with Ausal Financial Partners, Inc., was permanently barred from associating with any FINRA member in any and all capacities after failing to appear for an on-the-record interview in connection with FINRA’s investigation into allegations from a civil complaint which claimed Bannon had converted a minimum of $74,000 in customer funds. FINRA Letter of Acceptance, Waiver, and Consent No. 2013037771802 (May 8, 2015).
According to FINRA’s Letter of Acceptance, Waiver, and Consent (“AWC”), Bannon was being investigated by FINRA in April of 2015 regarding allegations that Bannon stole $74,000 in customer funds. The AWC noted that Bannon was also being investigated by FINRA for not disclosing unsatisfied judgments and liens, possible outside business activities that were not approved or disclosed, and an action by the sate of Illinois that involved revoking Bannon’s registration as a salesperson and investment advisor due to Bannon not paying taxes due to the Illinois Dept. of Revenue.
Firms and individuals, quite obviously, are prohibited from unauthorized use or borrowing of a customer’s funds or securities, forgery, non-disclosure or misstatement of material facts, and manipulations and various deceptions. These activities are also subject to the civil and criminal laws and sanctions of federal and state governments.
The AWC revealed that on March 23, 2015, FINRA, pursuant to Rule 8210, requested that Bannon appear for on-the-record testimony. Bannon, according to the AWC, responded via phone call with FINRA, where he stated his refusal to appear for testimony at any point.
FINRA registered representatives like Bannon who do not cooperate with FINRA’s investigations often face a permanent bar from practicing in the securities industry as such lack of cooperation violates FINRA’s Rule 8210 – requiring that no member or person shall fail to provide information or testimony or permit an inspection and copying of books, records, or accounts pursuant to the rule. FINRA typically accompanies a Rule 8210 violation with a Rule 2010 violation when individuals, according to FINRA, do not appear to observe high standards for commercial honor and just and equitable principles of trade.
Public records via FINRA’s BrokerCheck reveal that Bannon has been subject to 5 disclosure incidents, which include 2 judgments/liens, 2 of the aforementioned regulatory incidents, and a customer dispute. Regarding the customer dispute, a party was awarded $118,962.40 against Bannon after a customer alleged that Bannon misappropriated funds for personal in 2009.
Guiliano Law Group
If you have been the victim of securities fraud and you have a complaint, you should consult with an attorney. The practice of Nicholas J. Guiliano, Esq., and The Guiliano Law Group, P.C., is limited to the representation of investors in claims for fraud in connection with the sale of securities, the sale or recommendation of excessively risky or unsuitable securities, breach of fiduciary duty, and the failure to supervise. We accept representation on a contingent fee basis, meaning there is no cost unless we make a recovery for you, and there is never any charge for a consultation or an evaluation of your claim. For more information contact us at (877) SEC-ATTY.
