South Florida Arbitration & Litigation Lawyer Blog
Unauthorized Borrowing of Funds from Client and Negligent Supervision FINRA Arbitration and Litigation Attorney, Russell L. Forkey, Esq.
October, 2011:
William James Lasko (CRD #303150, Registered Principal, Carrollton, Texas) submitted an Offer of Settlement in which he was fined $5,000 and suspended from association with any FINRA member in any capacity for three months. The fine must be paid either immediately upon Lasko’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 allegations, Lasko consented to the described sanctions and to the entry of findings that he borrowed $12,000 from his customer while associated with his member firm, and signed a promissory note in which he agreed to repay the $12,000, plus interest. The findings stated that Lasko did not notify his firm of this loan and did not attempt to receive the firm’s approval of this loan contrary to his firm’s procedures that did not allow its registered representatives to borrow money from their customers. The findings also stated that Lasko did not repay the money he borrowed from the customer. The suspension is in effect from August 15, 2011 through November 14, 2011. (FINRA Case #2009020174801).