FINRA Bars Ex-Ameriprise Rep Who Was Fired Over Ethics Violations

FINRA initiated an investigation into Caveness' "potential receipt of checks from senior customers," according to the FINRA AWC letter. FINRA did not elaborate. However, it is likely that the checks in question were from certain older clients of his with Ameriprise that raised red flags, possibly because they were not related to normal payments he would have received from those customers through his relationship with the firm.

"Although Caveness initially cooperated with FINRA's investigation, he ceased doing so in July 2020," according to the FINRA AWC letter. "Specifically, on June 25, 2020, FINRA staff sent a request to Caveness for the production of information and documents pursuant to FINRA Rule 8210," the regulator said.

However, "as stated in his counsel's e-mail to FINRA staff on July 9, 2020, and by this agreement, Caveness acknowledges that he received FINRA's request and will not produce the information or documents requested at any time," according to the AWC letter.

By refusing to produce the information or documents as requested, Caveness violated FINRA Rules 8210 and 2010 (governing standards of commercial honor and principles of trade), according to the regulator.

Asked for comment, Alan M. Wolper, an attorney at law firm Ulmer & Berne in Chicago who represented Caveness in the dispute with FINRA, told ThinkAdvisor: "The fact is my client had already determined that he no longer wanted or needed to be associated with a FINRA member firm, so he had no incentive to continue to cooperate with FINRA's examination, even though he knew that would result in the sanction that was imposed.  With that said, the subject of the FINRA examination concerned whether or not Bryant had participated in any securities transactions with clients – some of whom were seniors – away from Ameriprise.  When questioned by FINRA about this under oath, Bryant denied doing that, and he stands by that testimony."