Negligent Supervision and Theft FINRA Arbitration and Litigation Attorney, Russell L. Forkey, Esq.

September, 2011:

Matthew Crump (CRD #1924664, Registered Principal, Houston, Texas) submitted a Letter of Acceptance, Waiver and Consent in which he was barred from association with any FINRA member in any capacity. Without admitting or denying the findings, Crump consented to the described sanction and to the entry of findings that he was the CCO at his member firm and utilized his position to convert approximately $14,000 from firm customers’ brokerage accounts by using fictitious documents to effect unauthorized transfers of securities and cash from the customers’ accounts to a trust account he established at his firm. The findings stated that Crump transferred securities and cash worth approximately $4,000 from one customer’s account by using a fictitious letter of authorization to effect the conversion. The findings also stated that two days before the transfer, Crump used the firm’s systems to temporarily change the address on the customer’s account to Crump’s attention at his work address, the effect of which was to have correspondence and other notices relating to the account sent to him at his firm.  The findings also included that Crump used a fictitious retirement account distribution form and a fictitious letter of authorization to effect the conversion of securities and cash worth approximately $10,000 from another customer’s Individual Retirement Account (IRA) to the customer’s cash account, and Crump transferred the securities and cash from the customer’s cash account to the trust account he controlled. FINRA found that the customers did not know about or authorize the transfers. FINRA also found that Crump used the unlawfully converted funds to pay for his personal and business expenses.  (FINRA Case #2011028107401).