George Snyder Suspended by FINRA for Alleged Reg-BI Violations

George Snyder (CRD #: 4276539), a broker formerly registered with Ameriprise Financial Services, faces a five-month FINRA suspension, according to his BrokerCheck record, accessed on November 13, 2024. Read on to learn more about his alleged conduct as a broker.

FINRA Suspension

On October 11, 2024, George Snyder consented to the entry of findings that he allegedly violated the Care Obligation under Regulation Best Interest.

The Care Obligation requires brokers to have a reasonable basis to believe that an investment could be in the best interest of at least some potential investors, as well the specific client to whom they are recommending the investment.

According to a Letter of Acceptance, Waiver & Consent (AWC), George Snyder allegedly recommended 18 investments in non-traditional exchange-traded funds (NT-ETFs) to 13 retail clients. He allegedly also recommended 11 clients (including 6 of those previously mentioned) invest in equity securities of two companies involved in cryptocurrency asset mining.

George Snyder allegedly did not have a reasonable basis to believe these investments were suitable for any retail investor. For example, the AWC alleges that he did not research NT-ETFs and did not understand the risks associated with holding them for more than one day. He was allegedly also not aware of the volatility of the stocks he recommended.

The AWC further alleges that George Snyder failed to consider his clients’ investment profiles before recommending these investments. Clients allegedly suffered approximately $30,000 in realized losses and George Snyder allegedly received $3,699.03 in commissions from these transactions.

Alleged Mismarked and Unauthorized Trades

Additionally, the AWC alleges that George Snyder caused Ameriprise Financial Services to maintain inaccurate books and records by mismarking 32 order tickets between January and August 2022. He allegedly mismarked these tickets as unsolicited when the trades were, in fact, solicited.

During that same period, George Snyder allegedly exercised trading discretion in client accounts without prior written authorization. He allegedly executed six of the aforementioned NT-ETF or securities transactions without clients’ authorization and in violation of Ameriprise’s policies prohibiting discretionary trading.

The AWC concludes that these allegations constitute violations of FINRA Rules 2010, 4511, 3260(b) and Regulation Best Interest.

FINRA Rule 2010

FINRA Rule 2010 holds brokers to high standards of commercial honor and just and equitable principles of trade.

FINRA Rule 4511

FINRA Rule 4511 requires that firms maintain accurate books and records.

FINRA Rule 3260

Unauthorized trading violates FINRA Rule 3260, which limits brokers to engaging in discretionary trading only in pre-authorized accounts. Both the firm and the client must approve an account before discretionary trading can occur.

Regulation Best Interest

Regulation Best Interest (Reg-BI) is an SEC regulation that requires brokerage firms to put their clients’ best interests first. For example, firms must conduct reasonable due diligence when researching investments to ensure their recommendations are suitable for the investor.

Sanctions

George Snyder consented to the following sanctions:

• 5-month suspension from associating with FINRA members
• $10,000 fine
• Disgorgement of $3,699.03 plus interest

His suspension began on October 21, 2024, and will end on March 20, 2025. You can access the full AWC here.

Background Information

George Snyder has passed the following exams:

• Series 66 – Uniform Combined State Law Examination
• SIE – Securities Industry Essentials Examination
• Series 7 – General Securities Representative Examination

He previously worked for Ameriprise Financial Services (CRD#:6363) and IDS Life Insurance Company (CRD#:6321)

Kurta Law Can Help

If you worked with George Snyder and you have concerns about your investments, please contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation.

For over 20 years, Kurta Law has advocated on behalf of investors who want to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm that exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf.