One Felony Arrest ???

Discussion in 'Professional Trading' started by ImamicPH, Dec 1, 2005.

  1. I've spoke to someone with PHLX exchange and she told me one felony arrest will inhibit you from obtaining a Series 7, for life.

    This came as a surprise. I would suspect a felony conviction possibly stopping you maybe for a period of time.

    Is this problem restriced to PHLX or is this something every exchange advocates? I was approved by the NASD, but now I think that they have no part in criminal background checks.

    Is the NYSE more easy than the PHLX? Some kind of waiting period?
  2. Truff


    What was your crime?
  3. Possession of Narcotics -

    The charges got dropped too.
  4. pjbreen


    My guess is that if you're honest and straightforward about it, you'll be OK.

    I think they're more concerned with money-related felonies like embezzlement, fraud, etc.
  5. I find this unbelievable. Is it possible that what is meant here is that one felony conviction will inhibit you from obtaining a Series 7, for life?

    A search found this:
    The firm submitted Delacruz's fingerprints to the Department of Justice in June 2002 as part of his Series 7 registration process. In connection with this application, Delacruz completed a U4 and falsely responded to two pivotal questions: Has the applicant "ever been convicted of or pled any felony," and has he "ever been charged with a felony."

    The firm's compliance department was notified of Delacruz's criminal record on or about July 15, 2002, and the firm promptly terminated him. Nearly two years later, in March of this year, the NYSE censured and barred him for six years in all capacities. [See Luis A. Delacruz (SFC/HPD 04-40/March 2004).]

    Why do they ask two questions? (1) where you convicted of a felpny? (2) were you changed with a felony?

    One could be changed with a felony because an eye witness said they saw you kill someone on the streets of NYC. Only to find out later that it was mistaken identity, provable since you were vacationing in Figi at the time.

    further update:
    Section 3(a)(39)(F) of the Exchange Act8 and Article III, Section 4(g)(2) of the NASD By-Laws provide that a person convicted of any felony is subject to a statutory disqualification for ten years.
  6. Ebo


    You might have to get it expunged, this is possible if the charges were indeed dropped.
  7. Choad


    No criminals are ever allowed in our financial organizations! :p
  8. Not true. However if you are going to be a RR a few states may not approve your registration.
  9. ktm


    Read the text again.

    If the charges were dropped, then you were not charged. I think where they are going is that if you were charged and found not guilty, they want to know that the state brought the case. Dropped charges are as good as no charges as it could have been an honest mistake. If I had charges dropped, I would answer "no" to the "have you ever been charged" question. A conviction or even being found not guilty is a whole different matter.
  10. I believe this is a decision specific to the PHLX exchange. (The firm I was to trade with is associated with them).
    #10     Dec 1, 2005