On May 31, 2024, an Acceptance, Waiver, and Consent (AWC) was issued, barring Ronald Harland Berg from association with any FINRA member in all capacities. The action was taken due to Berg’s refusal to provide information and documents requested by FINRA during its examination of his recommendations to senior customers regarding private offerings and his involvement with customer trusts.
Key Findings
Non-Compliance with Information Requests
The crux of the case against Berg revolved around his failure to comply with FINRA’s information requests:
- Partial Response: Initially, Berg provided a partial response that did not fully comply with FINRA’s request. The response was incomplete and lacked substantial information and documents that were critical to the examination.
- Refusal to Cooperate: Ultimately, Berg refused to provide additional information and documents, hindering FINRA’s ability to thoroughly examine his activities.
Implications for Securities Professionals
This case highlights the severe consequences for securities professionals who fail to comply with regulatory information requests. Key lessons include:
- Cooperation with Regulators: Full compliance with FINRA’s information and document requests is crucial. Providing incomplete or partial responses can lead to severe penalties, including being barred from the industry.
- Transparency in Recommendations: Securities professionals must ensure that their recommendations, especially those involving senior customers and private offerings, are transparent and well-documented.
- Involvement with Customer Trusts: Any involvement with customer trusts should be handled with the utmost care, ensuring full compliance with all regulatory requirements.
The enforcement action against Ronald Harland Berg serves as a critical reminder for securities professionals about the importance of transparency and cooperation with regulatory bodies. For those navigating the complex landscape of securities regulations, proactive compliance and thorough documentation are essential.
Bakhtiari & Harrison is committed to helping securities professionals and firms understand and adhere to regulatory requirements, ensuring robust compliance and protecting their professional standing. For guidance on securities litigation and regulatory compliance, contact Bakhtiari & Harrison today.