Have you ever wondered what happens when a broker breaks the rules? It’s a big deal in the finance world. Brokers must follow strict guidelines to keep our money safe. When they don’t, it can hurt many people.
Recently, FINRA took action against Steven Michael Blanchard, a former Raymond James broker. FINRA barred and suspended him for two years. They also fined him $15,000. This case shows how serious FINRA is about keeping brokers honest.
Our article will explain what Blanchard did wrong and why it matters to you. Ready to learn more?
Key Takeaways
Table of Contents
- FINRA barred and suspended Steven Michael Blanchard, a former Raymond James broker, for two years and fined him $15,000 on December 23, 2024.
- Blanchard falsified documents, including a fake job offer letter, to help a customer get a mortgage and provided false information during FINRA’s investigation.
- Raymond James fired Blanchard in February 2023 for unauthorized use of branch letterhead, which led to FINRA’s inquiry.
- Blanchard violated FINRA Rules 2010 and 8210 by failing to maintain high ethical standards and providing misleading information to regulators.
- The case highlights the importance of broker compliance with FINRA rules and the potential consequences of unethical behavior in the financial industry.
Background of Steven Michael Blanchard’s Case
Steven Michael Blanchard faced serious charges from FINRA. He allegedly faked documents and helped customers in ways that broke the rules.
Falsified documents and customer assistance
Steven Michael Blanchard, a broker at Raymond James, got into hot water for helping a customer in an unethical way. He made a fake job offer letter to help this person get a mortgage.
This wasn’t just any customer, but someone Blanchard had a personal tie to. His actions broke the rules that brokers must follow.
Raymond James found out about this in January 2023. They started looking into whether Blanchard’s customer used a false employment offer. This led to bigger problems for Blanchard.
He gave false info and fake documents when asked about it. These actions went against FINRA rules, which all brokers must obey.
Integrity is doing the right thing, even when no one is watching. – C.S. Lewis
Settlement with FINRA
After falsifying documents and assisting customers improperly, Steven Michael Blanchard faced consequences from FINRA. The Financial Industry Regulatory Authority reached a settlement with Blanchard on December 23, 2024.
This agreement aimed to address his alleged misconduct in the securities industry.
Blanchard agreed to pay a $15,000 fine as part of the settlement. He also accepted a two-year suspension from working in the financial sector. FINRA’s disciplinary action highlighted the importance of regulatory compliance for financial advisors.
Blanchard settled these allegations without admitting or denying them, a common practice in such cases.
Violation of FINRA Rules
FINRA rules set high standards for brokers in the securities industry. Steven Michael Blanchard broke these rules by giving false info to regulators.
Rule 2010: High standards for brokers
FINRA Rule 2010 sets high standards for brokers. It requires them to act ethically and follow fair practices. Steven Michael Blanchard broke this rule by creating fake documents and giving false info to regulators.
His actions went against the code of conduct that brokers must follow.
Blanchard’s case shows how important ethical behavior is in the finance world. He made up a job offer letter and lied during a regulatory inquiry. These actions led to his firing from Raymond James and a settlement with FINRA on December 23, 2024.
The case highlights the need for brokers to maintain professional integrity at all times.
Rule 8210: Prohibition of untrue or misleading information to regulators
FINRA Rule 8210 bans brokers from giving false or misleading info to regulators. Steven Michael Blanchard broke this rule by submitting fake documents during regulatory inquiries. He first claimed the offer letter was real but later admitted it was false.
This shows how serious FINRA takes honest communication from brokers.
Honesty is the best policy, especially with regulators. – Unknown
Blanchard’s actions highlight the need for strict compliance with FINRA rules. His case serves as a warning to other brokers about the risks of lying to regulators. The next section will explore the investigative findings and Blanchard’s termination from Raymond James.
Investigative Findings and Termination
FINRA found that Steven Michael Blanchard made up a job offer letter and fake emails. Raymond James fired him after learning about his lies.
Fabricated offer letter and false email exchanges
Steven Michael Blanchard, a broker at Raymond James, got into hot water for creating fake documents. He made up a job offer letter to help a customer get a mortgage. Blanchard didn’t stop there.
He also faked email exchanges to back up the phony offer letter. These actions broke FINRA rules and led to serious trouble.
FINRA dug deep into Blanchard’s claims. They found no real emails in Raymond James’ system that matched what Blanchard said he sent. This discovery exposed his lies and showed how far he went to deceive others.
As a result, Raymond James fired Blanchard for his dishonest behavior and false evidence creation.
Termination from Raymond James
The fabricated offer letter and false email exchanges led to serious consequences for Steven Michael Blanchard. Raymond James fired Blanchard in February 2023. The firm cited his unauthorized use of branch letterhead for an employment offer as the reason.
This action sparked a FINRA investigation into Blanchard’s conduct.
Blanchard’s BrokerCheck record shows a dispute about his exit from Raymond James. He claims he gave a resignation letter, not that he was fired. This disagreement highlights the complex nature of his departure from the firm.
The termination and following FINRA inquiry raised questions about Blanchard’s professional behavior and compliance with industry rules.
Deception and Settlement with FINRA
Steven Michael Blanchard gave false info to FINRA during its probe. He agreed to a settlement without admitting guilt.
Misleading information and false documents
Steven Blanchard gave false info to FINRA during their probe. He claimed a fake offer letter was real and sent phony docs about a client’s marketing work. These lies came after Raymond James started looking into Blanchard’s actions.
FINRA found out the papers were made up after the firm’s review began. Blanchard later took back his untrue claims and owned up to his deceit.
Blanchard’s dishonest acts broke FINRA’s rules. He lied to regulators and faked proof to cover his tracks. This fraud led to serious trouble for the broker. FINRA bars brokers who don’t follow their ethics code.
Blanchard’s case shows how important it is for finance pros to be honest with watchdogs.
Acceptance of responsibility and settlement without admission of guilt
Steven Michael Blanchard took charge of his actions by accepting responsibility for giving false info to FINRA. He agreed to settle the claims against him without saying he did it.
This deal came with a $15,000 fine and a two-year break from working in the industry. FINRA and Blanchard wrapped up their agreement on December 23, 2024. The settlement shows how brokers can resolve issues with regulators without fully admitting wrongdoing.
Next, we’ll look at Blanchard’s career history and the disputes that came up when he left Raymond James.
Career History and Disputes
Steven Michael Blanchard worked at several brokerage firms before joining Raymond James. His departure from Raymond James sparked disputes and led to regulatory scrutiny.
Employment at various brokerage firms
Steven Michael Blanchard’s career in finance spanned several brokerage firms. He started at AXA Advisors in 2012, marking his entry into the securities industry. Blanchard then moved to M&T Securities and TIAA-CREF, gaining experience at different investment advisory firms.
In 2021, Blanchard joined Raymond James, expanding his work history in the financial sector. After leaving Raymond James in March 2024, he briefly worked at LPL Financial. This stint lasted until September 2024, showing the frequent job changes common in the brokerage industry.
Blanchard’s career path highlights the varied employment opportunities available in investment firms.
Disputes regarding departure from Raymond James
Steven Michael Blanchard’s exit from Raymond James sparked a heated debate. His BrokerCheck record shows a conflict about how he left the firm. Blanchard claims he quit by handing in a resignation letter.
He also says former branch leaders made wrong reports about him. These reports, he argues, were meant to hurt his business and good name.
The dispute highlights the complex nature of broker departures. Blanchard’s case shows how different views can lead to conflicts. His claims of unfair treatment by former managers raise questions about the process.
The disagreement over whether he was fired or quit adds to the confusion. This case underscores the need for clear rules on broker exits and disclosures.
Regulatory and Ethical Concerns
Broker misconduct raises red flags for regulators. FINRA’s rules aim to protect investors and maintain market integrity.
Regulatory issues related to broker compliance and ethical standards
Regulatory issues in broker compliance and ethical standards are crucial in the financial industry. FINRA sets strict rules to ensure brokers maintain high professional standards. Blanchard’s case shows how breaking these rules can lead to serious consequences.
He violated FINRA’s Rule 2010 and Rule 8210 by falsifying documents and giving misleading information.
Ethical conduct is a key part of a broker’s job. FINRA requires brokers to follow a code of ethics and meet compliance requirements. Blanchard’s actions highlight the need for strong regulatory oversight in the brokerage industry.
His case serves as a reminder of the importance of honesty and integrity in financial services.
Implications for the industry
Steven Michael Blanchard’s case has shaken up the financial industry. Brokers now face tougher rules and closer watch. Firms may boost their ethics training to stop similar problems.
This could lead to stricter checks on broker actions and more detailed record-keeping.
The industry might see big changes in how it handles broker conduct. Companies could create new ways to spot fake documents faster. They might also set up better systems to track client interactions.
These steps aim to protect investors and keep brokers honest.
Conclusion
Steven Michael Blanchard’s case shows the serious effects of breaking FINRA rules. His actions hurt trust in the financial industry and led to harsh penalties. Brokers must follow strict ethical standards to protect clients and maintain market integrity.
This case serves as a warning to other finance pros about the costs of dishonesty. Investors should stay alert and report any suspicious broker behavior to regulators.
FAQs
1. Why did FINRA take action against Steven Michael?
FINRA disciplined Steven Michael for violating industry rules. The regulatory body found evidence of misconduct in his work as a Raymond James broker.
2. What penalties did FINRA impose on Steven Michael?
FINRA issued both a bar and a suspension to Steven Michael. These sanctions prevent him from working in the securities industry for a specified period or indefinitely.
3. How does this action affect Raymond James?
This disciplinary action may impact Raymond James’ reputation. The firm might need to review its supervision practices and take steps to prevent similar incidents in the future.
4. Can Steven Michael appeal FINRA’s decision?
Yes, Steven Michael has the right to appeal FINRA’s ruling. He can request a review of the decision through FINRA’s established appeal process within a set timeframe.
