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

Return to Archive

TESTIMONIALS

Previous
Next

I want to extend a tremendous thank you for your dedication, professionalism, hard work and patient demeanor through this challenging time. It was enjoyable interacting with everyone on your team, this certainly helped while dealing with the situation and working towards resolution.

Dan M.

LATEST NEWS AND ARTICLES

March 14, 2025
Apex Clearing to Pay $3.2 Million in FINRA Settlement Over Securities Lending Violations

Apex Clearing, the clearing arm of Apex Fintech Solutions, has agreed to pay $3.2 million to settle FINRA allegations that it failed to ensure customers received compensation for lending their securities.

March 13, 2025
Congress Considers Expanding the Accredited Investor Definition

A recent congressional hearing examined potential reforms to the accredited investor definition, a critical threshold determining who can participate in private market investments.

March 12, 2025
GPB Capital Investors May Receive Some Compensation Under Proposed Distribution Plan

GPB Capital Holdings investors have not received returns on their investments since 2018. According to InvestmentNews, after years of litigation, a court-appointed receiver has submitted a plan to return funds to the 17,000 investors who purchased $1.8 billion in GPB limited partnerships.