Representing financial professionals, financial institutions and investors in investment loss, employment and disclosure matters, and in regulatory investigations nationwide.

Former broker barred by FINRA for false statements about outside CBD business

On Behalf of | Jan 30, 2023 | Regulatory Investigations

A former broker for Advisor Group’s Woodbury Financial who made false statements about her outside business activities has been barred by the Financial Industry Regulatory Authority, ThinkAdvisor reports.

The case involves broker Suzanne Charrin and her involvement in the cannabidiol (CBD) business. In July 2021, FINRA asked Woodbury for documents and information related to its investigation that Charrin was engaged in an undisclosed outside business activity. When asked for a statement, FINRA said Charrin falsely stated that her outside business activities involved the extraction of lavender oil and manufacture of lavender oil products, when in fact both businesses were involved in the CBD oil industry.

FINRA said that after two more requests to Charrin for documents and information, she again provided false information in response to the requests. She stated that her outside business activity had not manufactured or tested any products when the activity actually involved the manufacturing and selling of CBD products. During her on-the-record testimony in 2022, Charrin admitted that she had provided false information to FINRA in response to the authority’s requests.

She was found to have violated Rule 8210 which states that FINRA may require a person “associated with a member, or any other person subject to FINRA’s jurisdiction to provide information orally, in writing, or electronically ..with respect to any matter involved in [a FINRA] investigation.” Charrin also violated FINRA Rule 2010, requiring members to observe high standards of commercial honor and just and equitable principles of trade.

In a Form U5 termination notice filed in April 2022, Woodbury said that Charrin had been fired for participating in an unapproved outside business activity and for conducting activities that were not consistent with the firm’s policies and procedures.

Charrin signed FINRA’s letter of acceptance, waiver and consent barring her from associating with any FINRA member firm in all capacities, but she did not admit or deny the authority’s findings.

At Lewitas and Hyman, we understand the complexities that come with being the subject of a regulatory inquiry by the SEC, state regulators and other self-regulatory organizations such as FINRA and other exchanges. If you are the subject of a regulatory proceeding, contact us at (888) 655-6002 or through our online contact form for a free consultation.