South Florida Arbitration & Litigation Lawyer Blog
April 2011 FINRA Accocunt Executive Enforcement Action:
David Lewis Conner (CRD #2021704, Registered Representative, Gastonia, North Carolina formerly licensed with Midamerica Financial Services, Inc. and Southeast Investments, N.C., Inc.) submitted a Letter of Acceptance, Waiver and Consent in which he was fined $15,000 and suspended from association with any FINRA member in any capacity for two years. The fine must be paid either immediately upon Conner’s reassociation with a FINRA member firm following his suspension, or prior to the filing of any application or request for relief from any statutory disqualification, whichever is earlier. Without admitting or denying the findings, Conner consented to the described sanctions and to the entry of findings that he engaged in business activities for compensation outside the scope of his business relationship with his member firm, without providing his firm with prompt written notice of these activities. The findings stated that Conner sold Equity Indexed Annuities (EIAs) valued at over $20 million without submitting the EIA applications to his firm for review and approval, as the firm required. The findings also stated that when Conner became registered with the firm, he did notify the firm that he was engaged in the sale of EIAs. The findings also included that Conner signed an Equity Indexed Annuities Verification Form in which he indicated that he was currently selling EIAs, and Conner added in his own handwriting that he had not sold an indexed annuity since a certain date, and that he would forward any future applications to the firm for approval. FINRA found that this attestation was false because Conner continued to sell EIAs without submitting the applications to the firm for approval. FINRA also found that Conner signed an annual compliance certification affirming that all annuity applications (including variable and equity index) have been sent and would be sent to an Office of Supervisory Jurisdiction (OSJ) for processing and approval. In addition, FINRA determined that during a certain period, Conner did not submit any EIA applications to the firm for review and approval. The suspension is in effect from February 22, 2011, through February 21, 2013. (FINRA Case #2009020865801)
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