FINRA Charges Advisor for Illicit Commissions Linked to Unregistered Advisor

Posted on April 1st, 2024 at 9:53 AM
FINRA Charges Advisor for Illicit Commissions Linked to Unregistered Advisor

From the desk of Jim Eccleston at Eccleston Law 

The Financial Industry Regulatory Authority Inc. (FINRA) has taken action against a California broker, Daniel Beech, allegedly for funneling $900,000 in commissions to an unregistered financial advisor. According to FINRA's Department of Enforcement, the advisor primarily served Farsi-speaking clients through television and radio shows in Farsi.

InvestmentNews reports that despite not speaking Farsi himself, Beech is accused of facilitating the payments to the unnamed advisor, who was a registered investment advisor but not registered with FINRA at the time of the transactions. Beech purportedly paid these commissions between May 2016 and at least January 2023, violating industry regulations by remitting payments directly to the unregistered advisor without registration with, and without authorization from, any broker-dealer.

 

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

Tags: eccleston, eccleston law, finra

Return to Archive

TESTIMONIALS

Previous
Next

I have the best legal firm in the country to defend me. Awesome job!

Cindy C.

LATEST NEWS AND ARTICLES

October 28, 2025
UBS Seeks Court Order Against $1.4 Billion Florida Advisory Team Over Client Solicitation Allegations

UBS Wealth Management USA has filed a lawsuit and requested a temporary restraining order (TRO) against a $1.4 billion advisory team that recently departed to join Elevation Point, a West Palm Beach-based registered investment advisor launched just 15 months ago.

October 27, 2025
FINRA Panel Orders Charles Schwab to Pay Damages Over Structured Product Losses Sold by Vora Wealth Management

A three-person FINRA arbitration panel ordered Charles Schwab & Co. to pay $165,440 in compensatory damages to a former client of Vora Wealth Management, after losses tied to complex structured products.

October 23, 2025
Retail Access to Private Markets Raises Investor Protection and Regulatory Concerns

Robinhood Markets recently registered its first alternative investment vehicle, Robinhood Ventures Fund I, with the Securities and Exchange Commission (SEC).