South Florida Arbitration & Litigation Lawyer Blog
Unauthorized Borrowing of Funds From Customers FINRA Arbitration and Litigation Attorney, Russell L. Forkey, Esq.
March, 2012:
Jason William Chicosky (CRD #4643473, Registered Representative, Huntsville, Alabama) 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, Chicosky consented to the described sanction and to the entry of findings that while registered with two different FINRA member firms, he borrowed a total of $60,000 from customers of his firms in separate transactions. The findings stated that Chicosky did not provide notice to, or receive permission from, either of the firms to borrow from customers, in violation of each firm’s policies and procedures. The findings also stated that in response to a request for information, Chicosky provided false and misleading information to FINRA. Notwithstanding the fact that at the time of the request, Chicosky had $40,000 in outstanding loans from a non-relative firm customer, he failed to disclose the non-relative customer loans in his response to FINRA. Instead, Chicosky only disclosed loans from family members, who were also firm customers. (FINRA Case #2011027065501).