The Financial Industry Regulatory Authority has expelled Take Charge Financial, Inc. of Los Gatos, California and barred principal Joan Anne Perry of San Jose for transferring $90,781.06 from customer accounts to firm-owned or controlled accounts without authorization. Perry was additionally found to have borrowed $300,000 from a customer in violation of FINRA rules while both Perry and the firm were found to have failed to timely report multiple customer complaints to FINRA.
FINRA OHO Disciplinary Proceeding #2011028950901
In its settlement with Perry, FINRA stated as fact that from 2009 through 2011, Perry electronically transferred the $90,781.06 while designating each transfer as a fee or commission for a series of portfolio analysis reports, without customer authorization for any withdrawal, fee or commission.
During its investigation, FINRA discovered that signed Advisory Services Agreement did not include any provisions nor authorizations for the charging of fees in connection with portfolio analysis reports; furthermore, when FINRA attempted to locate these reports, Authority staff could not find them.
When Perry subsequently produced these reports for the Authority at a later time, FINRA found that those documents had allegedly been produced specifically for FINRA and had not been sent to customers. Perry was accordingly charged with falsification, providing false testimony and providing falsified documents to FINRA.
Perry was additionally charged with improper use of customer funds after soliciting and receiving a loan of $300,000 from a customer, in violation of FINRA rules as the customer allegedly had not agreed to loan that money to Perry at the time the funds were wired out of the customer's account.
Finally, FINRA found that since March 31, 2009, Perry and Take Charge Financial received 12 customer complaints that they failed to report to FINRA in a timely manner, while they failed to report four of these complaints whatsoever.
Perry and Take Charge Financial were additionally charged with failure to properly preserve correspondence, failure to maintain minimum required net capital, untimely notice of net capital deficiency, failure to implement an anti-money laundering compliance program and failure to update various securities industry forms.
The financial industry and its regulatory body (FINRA) require member firms and registered individuals to comply with a comprehensive series of rules and regulations in order to safeguard both customers and other registered entities. Though violative conduct may result in a sanction such as industry banishment, FINRA OHO settlements may not always include orders of disgorgement or restitution. If you have invested with Perry, Take Charge Financial or any other broker, advisor or firm whose misconduct has proven harmful to your financial interests, please call The Law Offices of Jonathan W. Evans & Associates at (800) 699-1881 for an investigation and consultation.