FINRA bars Broker for Unethical Conduct and Assisting Friend in Deceiving Creditors

Proshare

Monday, April 25, 2016 6.03PM /MV

The Financial Industry Regulatory Authority (FINRA) announced today a decision barring James Van Doren from the securities industry for unethical conduct involving money laundering and a scheme to deceive a friend's creditors and facilitate violations of law, including conspiracy to commit bankruptcy fraud.

 

The ruling resolves charges brought by FINRA's Department of Enforcement in October 2014 and in its amended complaint.

 

The default decision finds that Van Doren engaged in unethical conduct in violation of FINRA rules by helping a childhood friend and business associate evade legal obligations by deceiving his creditors. Van Doren had invested in several real estate deals with his friend's company in an outside business activity. When the company was not able to meet its obligations, creditors attempted to claim the friend's assets. On three separate occasions, Van Doren accepted a total of $244,000 from his friend, including $30,000 in cash in a briefcase, with the purpose of concealing the assets from the creditors. He later returned most of the money to his friend and retained some of the money to offset financial losses he suffered. On one occasion, Van Doren made false representations to his own bank in an effort to obtain additional funds.

 

In connection with the scheme, Van Doren has pleaded guilty in federal district court to one count of money laundering and was sentenced to 15 months in prison.

In addition to the violations stated above, the decision notes that Van Doren is "a grave risk to customers, firms and other participants in the industry," and is "unfit to be in the securities industry and should be barred."

 

Unless the decision is appealed to FINRA's National Adjudicatory Council (NAC), or is called for review by the NAC, the decision becomes final after 45 days.

 

LESSONS FOR NIGERIA ON INSTITUTIONALISING INVESTOR PROTECTION

Investors can obtain more information about, and the disciplinary record of, any FINRA-registered broker or brokerage firm by using FINRA's BrokerCheck. FINRA makes BrokerCheck available at no charge.

In 2015, members of the public used this service to conduct 71 million reviews of broker or firm records. Investors can access BrokerCheck at FINRA

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