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.
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"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."
