The Financial Industry Regulatory Authority Inc. said Monday it barred broker
James Van Doren for a money laundering scheme that deceived creditors who were attempting to claim assets of his friend's business.
Mr. Van Doren, who was earlier sentenced to 15 months in prison on related charges, engaged in unethical conduct by helping his childhood friend and business associate
evade legal obligations, Finra said. He invested in several real-estate deals with his friend's company and helped hide assets when it couldn't meet its obligations, the regulator said.
On three separate occasions, Mr. Van Doren accepted a total $244,000 from his friend, including $30,000 in cash in a briefcase, to conceal assets that creditors sought to claim, according to Finra. He later returned most of the money to his friend while keeping some to offset financial losses he suffered.
Finra first brought charges against Mr. Van Doren in October 2014. Its amended complaint last year shows the alleged scheme to defraud creditors ran between 2008 and 2009.
Mr. Van Doren is "a grave risk to customers, firms and other participants in the industry," the self-regulatory organization said Monday of its decision.
“I did not hide anything from anyone, I never misled anyone and I did nothing improper,” Mr. Van Doren said in an email. “I was coerced and misled into entering a plea in the criminal matter, and after securing new counsel, spent nearly two years trying to withdraw my plea.”
Finra's BrokerCheck shows that Mr. Doren last worked for Citigroup Inc., where he was registered from February 2011 to April 2013. Before that, he was employed at Barclays Plc from September 2008 to October 2010 and Lehman Brothers Holdings Inc. from November 2005 to September 2008.
The regulator's decision becomes final after 25 days unless it's appealed to Finra's National Adjudicatory Council or the council calls for its review.
