Alan Cashaw, Jr., of Philadelphia, Pennsylvania, a registered representative with FSC Securities Corporation, was charged by Financial Industry Regulatory Authority (FINRA) Department of Enforcement in a Complaint alleging that Cashaw failed to respond to FINRA’s requests to provide information in connection with a FINRA investigation into Cashaw’s alleged misconduct. Department of Enforcement v. Alan Cashaw, Jr., No. 2014041884602 (Oct. 29, 2015).
According to the Complaint, on July 9, 2014, FSC Securities Corporation filed a Form U5 terminating Cashaw’s registration and disclosing that he had been terminated for violating the firm’s policies and procedures pertaining to availability and frequency of client contact, while also failing to properly maintain, retain, and secure firm books and records. Public disclosure records reveal that the firm discharged Cashaw on June 24, 2014.
The Complaint indicated that once FINRA received the U5 filing, FINRA had opened an investigation into whether Cashaw’s alleged misconduct was violative of FINRA Rule 4511 and Securities Exchange Act Rule 17a-3, which requires the proper maintenance, retention, and securing of customer records. On August 4, 2014, FINRA, acting pursuant to Rule 8210, requested that Cashaw, Jr. provide information in connection with the investigation.
The Complaint indicated that Cashaw did not respond to FINRA’s first and second requests. Cashaw reportedly failed to respond to a letter from FINRA on January 30, 2015, notifying him that he would be suspended on February 23, 2015, from associating with any FINRA member in any capacity unless he participated in the investigation before the suspension date.
The Complaint further stated that Cashaw was ultimately suspended and warned that if he had not provided the aforementioned information by May 4, 2015, he would be barred from association with any FINRA member firm. Cashaw reportedly provided a written response to FINRA’s requests by May 1, 2015. FINRA alleged that Cashaw violated Rule 8210 and 2010 for failure to timely respond to their requests.
The Complaint further indicated that once Cashaw responded to FINRA, FINRA sought further information and made additional requests for such. Cashaw, according to the Complaint, did not respond to a third and a fourth request. FINRA alleged that Cashaw violated Rule 8210 and 2010 for not responding to their third and fourth requests for information and documents.
FINRA registered representatives like Cashaw 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.
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.
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, Esquire, 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.
