FINRA Bars Ex-Goldman Rep Over Expense Reimbursement

The Financial Industry Regulatory Authority has barred a former Goldman Sachs broker who refused to cooperate with the regulator’s investigation of the firm’s allegation that he submitted inaccurate expense reimbursement requests, according to FINRA.

Without admitting or denying FINRA’s findings, Jared Ailstock signed a FINRA letter of acceptance, waiver and consent on April 2 in which he consented to its sanction against him that he be barred from associating with any FINRA member in all capacities. FINRA signed the letter Thursday.

In March, FINRA suspended a Morgan Stanley broker accused of submitting expense reports for business meals with false information about the people in attendance.

FINRA typically bars any brokers who won’t cooperate with its investigation of them, regardless of their alleged violations.

Goldman Sachs and Adrienne Ward, an attorney at the New York law firm Olshan Frome Wolosky who represented Ailstock, did not immediately respond to requests for comment on Friday.

Ailstock became associated with Goldman Sachs in June 2015 and in July 2015 became registered with FINRA as a rep.

On Dec.17, 2019, the firm filed a Form U5 Uniform Termination Notice disclosing that he had been discharged based on “concerns regarding inaccurate business expense reimbursement submissions for which the individual has agreed to work through a reimbursement plan,” according to FINRA.

On March 5, in connection with an investigation as to whether Ailstock submitted inaccurate business expense reimbursement requests to his firm, FINRA sent a request to him through his counsel to appear and provide on-the-record testimony on April 2, as required by FINRA Rule 8210, FINRA said.

However, as stated in an email by Ward to FINRA on March 12 and by the agreement represented by the AWC letter, Ailstock acknowledged that he had received FINRA’s request and would not appear for on-the-record testimony at any time.

By refusing to appear for on-the-record testimony as requested pursuant to FINRA Rule 8210, he violated FINRA Rules 8210 and 2010 (governing standards of commercial honor and principles of trade), according to FINRA.

Ailstock didn’t join another FINRA member firm after leaving Goldman Sachs and is no longer registered as a broker, according to his report on FINRA’s BrokerCheck website. He worked for Credit Suisse Securities from 2008 to 2015, according to BrokerCheck.

European Compliance Association

European Compliance Association