FINRA Bars Ex-Merrill Rep Who Refused to Testify

The Arizona Securities Division had investigated him over what were believed to be "multiple violations of the Securities Act of Arizona and the Arizona Investment Management Act," according to BrokerCheck. The rep was "accused of offering or selling securities within or from Arizona while not registered as a salesman and engaging in fraudulent activity by using a client's funds for personal use rather than investing and providing material misrepresentations through false documents in regards to the client's account," it said.

Merrill declined to comment Wednesday. OneAmerica and David W. Williams, a lawyer at Davis Miles McGuire Gardner in Tempe, Arizona, who was representing Wagner in the case, didn't immediately respond to requests for comment.

In October, Wagner went on to violate FINRA Rules 8210 and 2010 "by failing to provide testimony as requested pursuant to FINRA Rule 8210," according to the FINRA letter.

FINRA had been investigating the rep's "potential misuse of customer funds and involvement in an undisclosed outside business activity" and, on Sept. 17, 2019, FINRA staff sent a request to Wagner to appear for on-the-record testimony Oct. 8, FINRA said.

However, on Sept. 23, Wagner "informed FINRA staff through counsel that despite receiving the 8210 Request for Testimony," he "would not appear and provide testimony at any time," according to the FINRA letter, which went on to note he never did provide that testimony.