Tyler James Woodward of Colorado Springs Colorado a stockbroker formerly employed by MML Investors Services has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon a FINRA Hearing Panel Decision containing findings that Woodward failed to give documentation to FINRA and provide recorded testimony before FINRA personnel in the course of an investigation into accusations of Woodward’s conversion of customer funds. Department of Enforcement v. Tyler J. Woodward, Disciplinary Action No. 2018058866401 (Mar. 12, 2019).
According to the Decision, in June of 2018, a complaint had been sent to FINRA’s attention from a customer, KJ, concerning Woodward’s possible conversion (or theft) of customer funds in addition to Woodward’s violation of FINRA Rules. KJ apparently informed FINRA that Woodward steered the customer towards moving $117,000.00 from the customer’s brokerage account into another brokerage firm’s account. Subsequently, Woodward supposedly instructed the customer to place the funds with Precision Financial Research and Management, LLC – a company established by Woodward.
Woodward purportedly accessed the brokerage account owned by KJ so that Woodward could direct the transactions for KJ’s account. Throughout that period, Woodward was supposedly instructed by KJ numerous times to return the customer’s funds. However, Woodward did not answer to any of KJ’s requests.
The Decision stated that an investigation had been commenced by FINRA into Woodward’s activities, prompting the regulator to seek out Woodward’s information and documentation under Rule 8210. Apparently, Woodward failed to respond to FINRA’s information requests. This resulted in FINRA making a second request for Woodward’s documents and information; however, Woodward failed to respond to FINRA’s second request too.
Around the time that a second request was made by FINRA for Woodward’s information, Woodward was also sent a request by FINRA under Rule 8210 calling for his recorded testimony to be provided in regard to the allegations of his misconduct. Evidently, that testimony request was not answered by Woodward; he never notified FINRA personnel or made an appearance to testify. Indeed, the Decision stated that Woodward was even sent another notification from FINRA which requested that he testify. That request went unanswered as well.
Eventually, on October 24, 2018, a Complaint had been filed against Woodward by FINRA’s Department of Enforcement alleging that Woodward’s conduct was violative of FINRA Rules 8210 and 2010 in two respects: Woodward neglected to furnish the documentation and information to FINRA, and Woodward neglected to make an appearance and testify as to his activities with the customer. The Decision revealed that Woodward was sent two notifications regarding the Complaint; however, Woodward never responded.
Apparently, following Woodward’s failure to respond, a Default Motion was filed by FINRA Department of Enforcement. Ultimately, Woodward was found in default by the FINRA Hearing Officer. FINRA’s Hearing Officer determined that Woodward obstructed a FINRA investigation; preventing FINRA from examining information and his testimony to determine whether Woodward violated FINRA Rules. Consequently, the Hearing Officer found Woodward’s conduct violative of FINRA Rules 8210 and 2010. As a result, FINRA barred him in all capacities.
Evidently, Woodward was terminated by MML Investors Services on October 13, 2016 supported by allegations that he violated the firm’s procedures and policies.
