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Wednesday, July 23, 2014

Local broker suspended for failing to disclose IRS liens

Friday, January 18, 2013

The Financial Industry Regulatory Authority has suspended Jon D. McKnight, a broker for LPL Financial LLC, for 20 business days. McKnight's suspension is set to begin on Tuesday, Jan. 22 and will run through Tuesday, Feb. 19. According to FINRA's most recent broker check report, which was sent anonymously to and confirmed by the State Gazette, McKnight violated FINRA rules 1122, 2010 and NASD Rule 2110 by failing to amend his form U4 to disclose a material fact. A U4 form is filled out by individuals, in investment positions such as McKnight, who is listed as a broker, and is used to disclose a wide range of past and present information included but not limited to examinations taken, criminal records and financial information such as liens and bankruptcies.

According to a Letter of Acceptance, Waiver and Consent between FINRA and McKnight dated Dec. 31, 2012, on or about Jan. 12, 2004 the Internal Revenue Service filed a federal tax lien in the amount of approximately $38,225 against McKnight. The document further shows that the lien remained unsatisfied until Dec. 23, 2011 by which time the amount owed reached approximately $60,892.83. McKnight failed to update his U4 to disclose the material finding resulting in violations of the above-mentioned FINRA rules. McKnight's signature on the document does not constitute admission or denial of FINRA's findings.

In addition to his 20-business-day suspension, McKnight will be required to pay a $5,000 fine.

According to its website, FINRA is the largest independent regulator for all securities firms doing business in the United States. FINRA's mission is to protect America's investors by making sure the securities industry operates fairly and honestly. All told, FINRA oversees about 4,290 brokerage firms, about 161,265 branch offices and approximately 630,390 registered securities representatives.



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