FINRA Suspends John Underation for Alleged Failure to Disclose Felony
John Underation (CRD #: 4273996), a broker formerly registered with McDonald Partners, has been suspended by FINRA, according to his BrokerCheck record, accessed on March 6, 2023. Read on to learn more about his alleged conduct as a broker.
FINRA Suspension
On December 27, 2022, John Underation consented to the entry of findings that he allegedly failed to amend his Uniform Application of Securities Industry Registration or Transfer (Form U4) to disclose felony charges in a timely manner.
According to a Letter of Acceptance, Waiver & Consent (AWC), John Underation was allegedly indicted by a grand jury for three felonies on August 19, 2020. He allegedly failed to amend his Form U4 to disclose these charges within 30 days.
John Underation allegedly later pled guilty to one felony charge on June 7, 2021, and allegedly failed to amend his Form U4 to disclose this within the required 10 days. He allegedly disclosed his charges and guilty plea approximately ten months later, on April 4, 2022.
The AWC concluded that these alleged failures to amend his Form U4 violated Article V, Section 2(c) of FINRA’s By-Laws and FINRA Rules 1122 and 2010.
Article V of FINRA’s By-Laws
Article V, Section 2(c) of FINRA’s By-Laws requires brokers to keep their application for registration accurate and to update it in a timely manner. Most updates must be made within 30 days of learning the information leading to the amendment, but amendments involving statutory disqualifications from registration must be made within 10 days.
FINRA Rule 1122
FINRA Rule 1122 prohibits members from filing inaccurate or incomplete information on their membership or registration documentation.
FINRA Rule 2010
FINRA Rule 2010 holds brokers to high standards of commercial honor and just and equitable principles of trade.
Sanctions
John Underation consented to the following sanctions:
- $5,000 fine
- 6-month suspension
His suspension began on January 3, 2023, and will end on July 2, 2023.
You can read a copy of the AWC here.
Criminal Charge
On July 31, 2020, John Underation was convicted of a felony charge.
Termination from Morgan Stanley Smith Barney
On October 4, 2017, John Underation was fired from Morgan Stanley Smith Barney following allegations that he signed a co-worker’s name on a personal loan account without their authorization.
Background Information
John Underation has passed the following exams:
- Series 66 – Uniform Combined State Law Examination
- SIE – Securities Industry Essentials Examination
- Series 7 – General Securities Representative Examination
- Series 6 – Investment Company Products/Variable Contracts Representative Examination
In the past, he worked for the following firms:
- McDonald Partners (CRD#:135414)
- Morgan Stanley (CRD#:149777)
- Morgan Stanley & Company (CRD#:8209)
- Citigroup Global Markets (CRD#:7059)
- Multi-Financial Securities Corporation (CRD#:10299)
- Vestax Securities Corporation (CRD#:10332)
Kurta Law Can Help
If you worked with John Underation 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 and 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.
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