Former Centaurus Financial, Inc. Financial Advisor Jonathan Dudley Permanently Barred For Failing To Cooperate In FINRA Investigation Regarding Conversion Of Customer Funds
Jonathan Dudley (CRD No. 5413469) was a Financial Advisor associated with Centaurus Financial Inc. until his separation from the company on April 25, 2019. In the Uniform Termination Notice for Securities Industry Regulation (Form U5), it was noted that Jonathan Dudley was permitted to resign while “the subject of an internal review as a result of a customer complaint that was initiated based on a personal business transaction with a customer.”
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), on January 11, 2021, Jonathan Dudley was barred from associating with any FINRA member in any capacity.
According to the FINRA sanction, “Respondent hereby accepts and consents, without admitting or denying the findings and solely for the purpose of this proceeding and any other proceeding brought on by or on behalf of FINRA, or to which FINRA is a party, prior to a hearing and without adjudication of any issue of law or fact, to the entry of the following findings by FINRA:
“In December 2020, Dudley violated FINRA Rules 8210 and 2010 by refusing to provide documents and information and on-the-record testimony requested pursuant to FINRA Rule 8210 in connection with Enforcement’s investigation concerning Dudley’s potential conversion of funds from, and participation in undisclosed outside business activities with, his Firm customer.”
For a copy of Jonathan Dudley’s FINRA disciplinary action details, click here.
Summary Detail of Allegations
September 2007 is the first time Jonathan Dudley was associated with a FINRA member firm; to date, he has been associated with six member firms. He was associated with Centaurus Financial, Inc. from April 2018 to April 2019 and worked as a registered investment company and variable contracts products representative. In required paperwork upon his separation from, his associated firm, the company indicated that he was permitted to resign while he was the subject of an investigation arising from a customer complaint “initiated based on a personal transaction with a customer.”
According to the FINRA sanction, Jonathan Dudley obtained funds from a customer for use in an outside joint business venture that was not disclosed to his member firm.
FINRA’s review of the U5 triggered an investigation that Jonathan Dudley refused to participate in by providing requested documents and information and on-the-record testimony.
For a review of Jonathan Dudley’s BrokerCheck, click here
Why a Refusal to Cooperate with FINRA is Serious for Investors
FINRA holds those associated with member firms to high standards to protect customers and their assets. Rule 8210 outlines the requirement that broker-dealers and their associates respond to requests for documents, information, and testimony from FINRA. A violation of this type also falls within Rule 2010, which requires “high standards of commercial honor and just and equitable principles” from all broker-dealers and individuals associated with them. In the event there’s a serious violation of FINRA rules, the agency needs to be able to carry out a thorough, expedient, and fair investigation; withholding materials that can assist in that investigation can ultimately harm investors if FINRA cannot appropriately resolve complaints and violations.
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