Jack Stuart O’Brien, Jr. of San Jose, California, a registered representative with Princor Financial Services Corporation, was barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any and all capacities after consenting to findings that he failed to cooperate with FINRA’s investigation into allegations that O’Brien accepted unauthorized compensation from a firm customer for personal services. Letter of Acceptance, Waiver and Consent, No. 20150455751-01 (Nov. 12, 2015).
According to the AWC, on June 11, 2015, while FINRA was investigating O’Brien’s termination from Princor, FINRA requested that O’Brien provide information and documentation, pursuant to Rule 8210. The AWC indicated that O’Brien had responded to FINRA in an e-mail on June 25, 2015, stating that he acknowledged receipt of their request for documentation and information, but that he would not be cooperating with FINRA’s investigation at any point. FINRA found O’Brien to be in violation of Rules 8210 and 2010 as a result, leading to his permanent bar.
FINRA registered representatives like O’Brien 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 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.
Public disclosure records via FINRA’s BrokerCheck reveal that Princor had discharged O’Brien on May 19, 2015, in connection with violating the firm’s policies regarding accepting compensation for personal services provided to clients. O’Brien was also subject to a customer dispute on March 27, 2015, where he settled with a customer for damages of $33,377.50 after a client’s power of attorney complained about personal checks being written to O’Brien from 2008 through 2013.
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