South Florida Arbitration & Litigation Lawyer Blog
Stock Broker Misrepresentation and Fraud FINRA Arbitration and Litigation Attorney, Russell L. Forkey, Esq.
January, 2012:
Susan Lynn Morris (CRD #1072185, Registered Principal, Wylie, Texas) submitted a Letter of Acceptance, Waiver and Consent in which she was barred from association with any FINRA member in any capacity. Without admitting or denying the findings, Morris consented to the described sanction and to the entry of findings that she converted a total of approximately $30,000 of her member firm’s funds for her personal use by altering information to generate interest payment streams not legitimately owed; specifically, Morris artificially inflated the asset account balances of the brokerage account she owned jointly with a relative, as well as the relative’s brokerage account at the firm, in order to receive additional interest on the accounts from the firm not legitimately owed. The findings stated that Morris also generated bogus payments to a firm interest expense account which she journaled to a firm cashiering account she controlled. Morris transferred the funds, disguised as legitimate automated clearing house deposits, into her relative’s brokerage account as a deposit. The findings also stated that in some instances, Morris forged colleagues’ initials on certain bogus account entries in the firm’s systems without their knowledge in an effort to conceal her activity; Morris’ firm did not authorize the transfer of firm funds for her personal use. (FINRA Case #2011029021901).