Finra Bars UBS Assistant Over Outside Tax-Prep Work
Financial Industry Regulatory Authority Department of Enforcement
Background: Lee first registered with FINRA as a General Securities Representative in May 2008. On September 20, 2012 Lee registered with UBS to assist two different financial advisors and serve administrative functions. On December 24, 2015, UBS terminated his registration. Since that time, Lee has not registered or associated with a FINRA member.
Overview of Allegations: From September 2012 through December 2013, Lee assisted a local tax preparer from whom he sought referrals, without disclosing this outside business activity. Lee created at least 50 partnership agreements for clients of that tax preparer including affixing inaccurate partnership agreement dates to those documents.
Lee failed to conduct adequate due diligence in drafting those agreements even though he expected them to be submitted to a state taxation authority in connection with ongoing audits of the tax preparer’s clients.
By engaging in an undisclosed outside business activity, Lee violated FINRA Rules 3270 and 2010. Lee failed to observe high standards of commercial honor by creating backdated partnership agreements thus further violating FINRA Rule 2010.
Result: Without admitting or denying the findings, Lee consented to a bar from associating with any FINRA member firm in any capacity.