On April 6 2010, Gregory M. Viechnicki, a general securities representative at BrokersXpress borrowed $10,000 from a public customer of the firm.
Although he subsequently paid back the $10,000 with interest, he violated the NASD Conduct Rule 2370: Borrowing from or Lending to Customers and the FINRA Rule 2010: Standards of Commercial Honor and Principles of Trade.
Not only did Viechnicki fail to inform BrokersXpress about the loan, he also violated the company rule against borrowing client money without an exception and the firm’s written approval.
Read: Broker makes 9 unauthorized deals
In an open and shut case, Viechnicki submitted a letter of acceptance, and waiver and consent. FINRA accepted and handed out a $2,500 fine and 10-business-day suspension from association with any FINRA member.
Read: Regulator hands out “parking ticket”
Bill Singer, Wall Street blogger, says rarely are cases so straightforward, and at least now we know the going rate for fines against this type of violation, as Viechnicki had no previous problems with FINRA.