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

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