can somebody prop trade with a felony?

Discussion in 'Professional Trading' started by gunslinger, Sep 12, 2009.

  1. Anybody know what the rule is if someone wants to trade while getting leverage if they have a felony? This will be for a broker-dealer so no series 7 needed just need to fill out a u-4.
  2. depends are you still serving time?
  3. Sorry O.J., you can't trade from prison.
  4. LOL, no he's out, my IT guy. Real smart dude, but did credit card fraud like 8 years ago. Has a family and is only making 40-50k/yr. He inherited a few 100k and knows the market, thought it would a good opportunity for some added income.
  5. a great opportunity for him to lose a few 100K :D

    stick with what he knows
  6. I know I know, but I told him I would check for him, so if anybody knows?
  7. Tide31


    Well, in the spirit of giving Michael Vick a chance, sounds like your guy paid his dues. Your post sounds contradictary though: if it is a broker dealer, then Series 7 is required. In this instance he will have a tough time getting past FINRA. If no series 7 is required for some reason, hedge funds don't require one and some shops are set up like this, then a U-4 will not be required. A firm can't ask you to fill out a U-4 unless its going to FINRA. This is their form. If it is similiar to U-4 with same questions, which sounds like the case, then they will do a background check and find out anyway.

    Best thing to do is just be upfront with them and ask. They are legally allowed to ask if you were ever convicted of a felony, and only allowed to ask if you were convicted of a misdemeanor relating to the securities industry. Anything other than this like 'accused of but not convicted', often in fact asked, is against the rules and a violation of your privacy. However, its their firm and their money you are using in levering so its their rules, if you remind them they can't ask you that they will agree but not hire you - really, but if you are honest with them and lay out the facts asking for a chance telling them you made a mistake, paid your dues and are a family man, they will probably listen. Especially since the losses are YOURS and you are just using their leverage. Hope some of this helps.
  8. Trade FX, the fx brokers don't give a shit about anything, even if you've commited genocide.
  9. To handle dealer broker accts, you need to have a series 7 license. He will never get a license in any state bcuz of his felony. PERIOD.

    Plus I would never hire a felon (credit card fraud...he cant be trusted with other ppls money!!)

    The thing bout felons, they have a hard time controlling their old habits and temptations.

    If he wants to trade, then he should do it on his own, with his own money; that way he can't take anyone down with him in case he falls thru the cracks again...........
  10. i think you can't have any felonies in the last ten years.
    #10     Nov 7, 2009