Publicly available records provided by the Financial Industry Regulatory Authority (FINRA) indicate that broker/adviser and former Chief Compliance Officer Corey Andrew White (CRD # 4537015) was recently barred from the securities industry from acting in all principal capacities by FINRA’s Department of Enforcement after an investigation into his failure to supervise unsuitable and excessive trading while associated with Financial West Group (CRD # 16668).
The Law Office of Kevin J. Deloatch, Esq. is interested in speaking to investors who have complaints regarding Mr. White and Financial West Group.
Registration Background for Corey White
Mr. White first became registered in the securities industry in 2002. He is currently registered with Pasadena, CA based Western International Securities (CRD # 39262). His prior registrations include Financial West Group (CRD # 16668) from August 2002 to August 2017.
FINRA’s Allegations Against Corey White
According to FINRA Letter of Acceptance, Waiver and Consent (AWC) dated March 19, 2021, Mr. White consented to, without either admitting to or denying, the following findings by FINRA’s Department of Enforcement:
- “While associated with Financial West, [Mr.] White was registered with FINRA as a General Securities Representative (from August 2002 to August 2017), a General Securities Principal (from November 2002 to August 2017), a Registered Options Principal (from September 2008 to August 2017), an Operations Professional (from October 2011 to August 2017), and an Investment Banking Principal (from February 2010 to August 2017)”;
- “Between January 2013 and July 2017, [Mr.] White served as the [Financial West’s] Chief Compliance Officer and Registered Options Principal”;
- “[Mr.] White was responsible for establishing, maintaining, and enforcing [Financial West’s] supervisory systems and Written Supervisory Procedures (WSPs)”;
- “[Mr.] White was responsible for monitoring the activities of all associated persons through the review of daily trade blotters and exception reports”;
- “[Mr.] White failed to establish WSPs reasonably designed to enable [Financial West’s] supervisors to review potentially excessive trading”;
- “Similarly, [Financial West] failed to have a supervisory system and WASPs reasonably designed to achieve compliance with FINRA suitability standards concerning the sale of Non-Traditional [Exchange Traded Products] to its retail customers”;
- “During the relevant period [Mr.] White failed to reasonably monitor representatives’ trading to detect potential sales practice abuses”;
- “Between January 2013 and December 2016, [Mr.] White encountered …. red flags indicating trading misconduct by five representatives involving 10 accounts belonging to six customers. [Mr.] White failed to reasonably respond to these red flags”; and
- By virtue of his actions, Mr. White violated NASD Rules 3010(a) and (b), regarding supervision; FINRA Rules 3110(a) and (b), regarding supervision; FINRA Rule 2360(b), regarding options; and FINRA Rule 2010, regarding standards of commercial honor and principles of trade.
FINRA Sanctions Corey White
As a result of such violations and in addition to the above described findings and conclusions, FINRA’s March 19, 2021 AWC also indicates that Mr. White consented to the following sanction(s):
- A bar from association with any FINRA member in all principal capacities; and
- A fine in the amount of $20,000.00.
Corey white Does Not Have A History of Customer Complaints
In addition to Corey White being barred for his failure to supervise unsuitable and excessive trading, FINRA BrokerCheck for Mr. White reveals that he does not have a history of customer complaints and/or customer-initiated arbitrations.
If you or someone you know has or had a brokerage account with Corey Andrew White or Financial West Group and have concerns regarding losses in your investments or possible sales practice violations including fraud, you may be entitled to recover lost funds. The Law Office of Kevin J. Deloatch, Esq. has an extensive securities law practice and over 30 years of experience on Wall Street. Call today at (646) 792-2156 for a free consultation. The time to file your claim may be limited so you should call today to avoid delay.