Criminal Defense Lawyer Explains Arrest Consequences for FINRA Professionals

Posted By Galluzzo & Arnone LLP || 20-Dec-2011

Criminal arrests are upsetting to everyone but can be particularly problematic for financial and securities professionals because of the possible employment and licensure consequences. Brokers, traders, bankers, financial advisors, and other financial professionals typically have to be licensed through FINRA, the Financial Industry Regulatory Authority. Some of the most common licenses include Series 7 and Series 63, but there are many. For those licensed professionals, criminal arrests and convictions may trigger updating of the U4 FINRA form. (Note: Employers may also have company policies requiring disclosures above and beyond what is required by FINRA). The registration form demands the following questions:

14a. (1) Have you ever (a) been convicted of or pled guilty or nolo contendere (“no contest”) in a domestic, foreign, or military court to any felony? (b) been charged with any felony?
(2) Based upon activities that occurred while you exercised control over it, has an organization ever: (a) been convicted of or pled guilty or nolo contendere (“no contest”) in a domestic or foreign court to any felony? (b) been charged with any felony?
14b. (1) Have you ever (a) been convicted of or pled guilty or nolo contendere (“no contest”) in a domestic, foreign or military court to a misdemeanor involving: investments or an investment-related business or any fraud, false statements or omissions, wrongful taking of property, bribery, perjury, forgery, counterfeiting, extortion, or a conspiracy to commit any of these offenses?
(b) been charged with a misdemeanor specified in 14B(1)(a)?
(2) Based upon activities that occurred while you exercised control over it, has an organization ever: (a) been convicted of or pled guilty or nolo contendere (“no contest”) in a domestic or foreign court to a misdemeanor specified in 14(B)(1)(a)? (b) been charged with a misdemeanor specified in 14B(1)(a)?
Responding to these questions in a legally proper manner is absolutely critical, and should not be done without consulting an attorney experienced in both criminal law and FINRA rules. It is also equally important for a pending criminal case to be resolved in a manner that does not require a U4 disclosure, so as to avoid jeopardizing a job or licensure.
If you work as a licensed financial professional and have been arrested for a criminal matter in New York, you should strongly consider contacting experienced criminal defense attorneys who specialize in dealing with FINRA licensed professionals. The team of former Manhattan prosecutors at Galluzzo & Arnone LLP is uniquely qualified to assist FINRA professionals facing criminal charges, as they have extensive experience defending them and have won major victories in FINRA employment arbitration matters. Thus, they truly understand the unique considerations facing financial professionals charged with criminal matters, and have had significant success in helping many clients keep their jobs and careers. Their attorneys can defend your criminal case in court, represent you in an employment arbitration before a FINRA panel, and/or advise you as to your FINRA disclosure requirements. Contact them today to schedule an appointment at 212-918-4661.

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