Allstate Stockbroker Barred In Misappropriation Investigation
Joseph Murray Snyder III, a Stockbroker with Allstate Financial Services, LLC, was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member after consenting to findings that he failed to cooperate with FINRA in their investigation into allegations of Synder’s misappropriation of customer funds. Letter of Acceptance, Waiver, and Consent, No. 2014040233501 (Oct. 16, 2015).
According to the AWC, FINRA had commenced an investigation into Synder’s termination from Allstate in addition to allegations concerning misappropriation of a customer’s cash insurance premium payments, falsification of company records, and the use of his personal credit cards to make installment insurance premium payments.
The AWC stated that on August 28, 2015, FINRA had requested that Snyder appear and provide testimony in connection with their investigation, pursuant to Rule 8210. Snyder’s counsel reportedly reached out to FINRA’s staff on September 8, 2015, indicating that while Snyder had received FINRA’s requests for testimony, he would not be cooperating at any point. Consequently, FINRA found Snyder to be in violation of Rule 8210 and 2010, leading to his bar.
FINRA Stockbrokers like Snyder who do not cooperate with FINRA’s investigations often face a permanent bar from practicing in the securities industry as such lack of cooperation violates FINRA’s Rule 8210 – requiring that no member or person shall fail to provide information or testimony or permit an inspection and copying of books, records, or accounts pursuant to the rule. FINRA typically accompanies a Rule 8210 violation with a Rule 2010 violation when individuals, according to FINRA, do not appear to observe high standards for commercial honor and just and equitable principles of trade.
Firms and individuals, not surprisingly, are prohibited from unauthorized use of customer funds, borrowing of a customer’s securities or funds, forgery, non-disclosures or misstatements of material facts, and various deceptions and manipulations. Such conduct can also be found to violate criminal and other civil laws, and be subject to sanction from the federal and state government bodies.
Public disclosure records reveal that Snyder has been subject to three disclosure incidents. On August 18, 2011, he was subject to a civil judgment for $5,326.14. On February 10, 2014, Allstate discharged Snyder in connection with his aforementioned misconduct.
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