Finra bars ex-Raymond James compliance executive for data tampering

Finra bars ex-Raymond James compliance executive for data tampering
In 2016, Vincent Storms changed broker audit information and avoided follow-up work.
JUL 08, 2019

The Financial Industry Regulatory Authority Inc. last Wednesday barred a former Raymond James & Associates Inc. compliance executive who in 2016 fiddled with and falsified branch audit data, therefore avoiding performing follow-up work. In January, Finra filed a complaint alleging the executive, Vincent Storms, falsified data he submitted to Raymond James in connection to branch audits he performed, according to Mr. Storms' BrokerCheck report. [More: Massachusetts opens probe of stock sales by First Republic executives] "In order to avoid and without performing requisite follow-up generated from audits that he conducted, Storms altered data after exporting it for numerous branches," Finra alleged at the time. Last Wednesday's default decision regarding Mr. Storms by Finra means that it was a ruling by Finra and not a settlement, which is common in such industry disputes. He could not be reached to comment and did not respond to Finra's initial complaint, according to Finra. Mr. Storms started working in the securities industry in 2005 as a compliance intern and then was registered with the firm from 2015 to 2017, when the firm terminated him for "improperly editing internal branch audit documents," according to Finra's decision. The Finra hearing officer in the matter, Michael J. Dixon, took Mr. Storms to task for fiddling with the branch audits, in which he changed answers to 524 questions from 145 brokers. It called into question 60 branch audits, according to Finra. His actions caused Raymond James & Associates to keep inaccurate books and records, a violation of industry rules. "In March 2017, Storm's supervisor confronted him about the altered branch audit data," according to Mr. Dixon's decision. "To hide his misconduct, Storms tried unsuccessfully to correct the data he had altered." "I find Storm's falsification of record to be egregious," Mr. Dixon wrote. "I find no mitigating factors. His actions amply demonstrate that he lacks the fitness to serve as a securities professional."

Latest News

Culture x capital: A new frontier for RIAs & UHNW clients
Culture x capital: A new frontier for RIAs & UHNW clients

In a saturated market of PE secondaries and repackaged alts, cultural assets stand out as an underutilized, experiential, and increasingly monetizable class of wealth.

LPL Financial on target to retain 90% of Commonwealth financial advisors, Wolfe Research analyst says
LPL Financial on target to retain 90% of Commonwealth financial advisors, Wolfe Research analyst says

However, Raymond James has had success recruiting Commonwealth advisors.

Elon Musk's DOGE compromised critical Social Security data, whistleblower claims
Elon Musk's DOGE compromised critical Social Security data, whistleblower claims

A complaint by the Social Security Administration's chief data officer alleges numbers, names, and other sensitive information were handled in a way that creates "enormous vulnerabilities."

Hedge funds win review of SEC’s short sale disclosure rule
Hedge funds win review of SEC’s short sale disclosure rule

The New Orleans-based 5th Circuit has sided the industry groups arguing the commission's short-selling rules exceeded its authority.

Carlyle to acquire intelliflo from Invesco, spinning off RedBlack for US RIAs
Carlyle to acquire intelliflo from Invesco, spinning off RedBlack for US RIAs

The deal will see the global alts giant snap up the fintech firm, which has struggled to gain traction among advisors over the years, for up to $200 million

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.