Ex-LPL Broker Fined, Suspended for Not Disclosing Child Sex Abuse Charge

“Vernor willfully failed to amend his Uniform Application for Securities Industry Registration or Transfer (Form U5) to disclose a felony charge,” according to FINRA.

As a result, Vernor violated Article V, Section 2(c) of FINRA’s By-Laws and FINRA Rules 1122 (governing the filing of misleading information as to membership or registration) and 2010 (governing standards of commercial honor and principles of trade).

Article V, Section 2(c) of FINRA’s By-Laws requires registered reps to keep their Form U4 “current at all times,” and to file any necessary amendments the Form U4 “not later than 30 days after learning of the facts or circumstances giving rise to the amendment,” according to FINRA.

“Vernor learned that he was charged with a felony on April 1, 2022 [and] willfully failed to amend his Form U4 within 30 days to disclose the charge, as he was required to do,” according to the AWC letter. “Indeed, although Vernor knew he was required to disclose the felony charge, he chose, voluntarily, to never disclose it on his Form U4.”

FINRA’s investigation originated when it started investigating the Form U5 that was filed by LPL.

FINRA sign in Philadelphia. Photo: Adobe Stock