FINRA Sanctions, Criminal Cases, and Industry Bars in 2025
From the desk of Jim Eccleston at Eccleston Law
AdvisorHub has compiled a year-end review of enforcement actions and criminal proceedings. The review reveals a cross-section of misconduct across the brokerage industry, with cases ranging from cash structuring and fraud to client theft and violent workplace conduct. Below is a summary of the more notable misconduct.
Cash Structuring and FINRA Discipline
In February, FINRA fined and suspended former Merrill Lynch broker James A. Iannazzo for misconduct unrelated to the viral 2022 incident that made him a public figure. FINRA imposed a $50,000 fine and a two-year suspension after finding that Iannazzo structured 368 cash deposits and withdrawals to evade federal reporting requirements under the Bank Secrecy Act.
As reported by AdvisorHub, between 2014 and 2021, Iannazzo transferred $845,980 in cash in increments below $10,000. FINRA concluded that he acted with knowledge of, and intent to evade, currency reporting requirements, in violation of FINRA Rule 2010. FINRA stated that it found no evidence of underlying criminal activity connected to the transfers.
Fraud Allegations and an Industry Bar
Also in February, former Morgan Stanley broker Roger A. Gallagher accepted a permanent industry bar rather than cooperate with a FINRA investigation. Gallagher accepted the sanction without admitting or denying FINRA’s allegations.
As reported by AdvisorHub, FINRA opened its investigation after receiving a tip regarding a criminal indictment against Gallagher. Federal prosecutors alleged that Gallagher committed mail fraud by sending a false and fraudulent $200,000 check to a Miami car dealership in April while attempting to purchase a Porsche SUV. Morgan Stanley terminated Gallagher in August 2024 over allegations involving undisclosed outside financial arrangements.
Nearly $3 Million in Client Funds Stolen
In June, former Merrill Lynch and Hilltop Securities broker Rajesh Markan settled a civil enforcement action brought by the Securities and Exchange Commission after stealing nearly $3 million from clients over nine years. Markan pleaded guilty to parallel criminal charges and received a two-year federal prison sentence in November, along with $2.445 million in restitution.
FINRA permanently barred Markan in October 2024. According to the SEC, his misconduct unraveled when he ran out of money and pressured clients to sell their home and invest the proceeds, prompting investors to investigate his conduct.
Former NFL Player and a Multimillion-Dollar Theft Case
In July, the criminal case against former Merrill Lynch advisor and former Miami Dolphins player Thomas Williams Jr. returned to the spotlight. Authorities arrested Octavia Monique Graham and charged her with first-degree grand theft and money laundering for allegedly helping Williams steal $2.59 million from his client, former NFL safety Reshad Jones.
As reported by AdvisorHub, police alleged that Williams accessed Jones’ Bank of America account and wired $1.58 million to his own accounts through 133 transactionsbbetween January 2022 and March 2024.
Structured Products and a $133 Million Arbitration Award
Also in July, FINRA barred former Stifel Financial broker Chuck Roberts after his structured product sales resulted in a $133 million arbitration award and tens of millions of dollars in settlements. Roberts agreed to the bar rather than continue cooperating with FINRA’s investigation into whether he recommended unsuitable structured products or misrepresented their risks.
Roberts did not admit or deny the allegations in the FINRA AWC (Acceptance, Waiver, and Consent). He signed the FINRA settlement shortly after resigning from Stifel, which previously had defended him by asserting that his clients were sophisticated investors who understood the risks involved.
Violence in the Workplace
In another July development, Raymond James Financial terminated broker Donald C. Brannock following allegations that he physically assaulted the leader of his independent practice in North Carolina. Authorities charged Brannock with assault after alleging that he punched, slammed, and choked his coworker.
As reported by AdvisorHub, Brannock faces a disposition hearing in January 2026. The incident involved Jonathan Reganess, a veteran broker and team leader whose practice managed approximately $285 million in client assets. The circumstances leading to the alleged assault remain unclear.
Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.
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