A broker who receives a FINRA OTR notice, or a subpoena from
the SEC must be aware that his prior customer and disciplinary history may
significantly impact how the investigation is conducted, what charges will be
brought and what penalties may apply. For this reason, it is imperative that
anyone called to give testimony or documents to financial regulators seek the
advice and counsel of an experienced lawyer as soon as possible after receiving
the OTR letter or subpoena
The securities
regulatory system is structured so as to increase punishment on repeat
offenders. FINRA
believes that disciplinary sanctions should be more severe for recidivists and
has structured the disciplinary process so as to impose progressively
escalating sanctions on recidivists up to and including a permanent bar and
expelling firms.
FINRA has clearly stated that sanctions
imposed on recidivists should be more severe because a recidivist, by
definition, already has demonstrated a failure to comply with FINRA’s rules or
the securities laws. The imposition of more severe sanctions emphasizes the
need for corrective action after a violation has occurred, discourages future
misconduct by the same respondent, and deters others from engaging in similar
misconduct. Adjudicators should always consider a respondent’s relevant
disciplinary history in determining sanctions and should ordinarily impose
progressively escalating sanctions on recidivists. FINRA also encourages more
severe sanctions when a respondent’s disciplinary history includes significant
past misconduct that: (a) is similar to that at issue; or (b) evidences a
reckless disregard for regulatory requirements, investor protection, or market
integrity.
HIRE AN EXPERIENCED ATTORNEY
FOR YOUR FINRA OR SEC INVESTIGATION
An investigation by FINRA, the
SEC, or a state securities administrator can become a life changing event, with
significant fines and suspensions. If you find yourself faced with
a FINRA 8210 Request, or an SEC subpoena, you need an experienced, qualified,
time-tested FINRA attorney who has the experience to provide excellent representation.
I am proud of my reputation as an aggressive defense attorney, who has
represented dozens of brokerage firms and hundreds of individual brokers across
the country, in securities investigations.
Every case is defensible, and
that defense starts with the initial contact with the regulators.
Mark J. Astarita, Esq.
Sallah Astarita & Cox, LLC
100 Park Avenue, Suite 1600
New York, New York 10017
212-509-6544
