Misdemeanor Fake ID Charge, outright dismissal, FINRA Risks
So I got arrested for a fake idea a few years ago, it wasn't even found in my possession, I was picking up a friend who's car was getting towed and it was in his car and the cop found it and just saw me, walked over, and arrested me. Very unlucky. Anyway, got a misdemeanor for it which is a fraud charge.
Very nice Judge simply threw the case out after I explained my career aspirations and all the good I do at our local college campus. He turned to someone, shrugged, and said "its a fake id" No diversion program, no acd, just a dismissal. Going into senior year now and I need to register with FINRA. I've done lots of research and am sure I need to disclose this on the FINRA application because it was a fraud charge. I'm not statutorily disqualified, however they could still deny my eligibility if they see fit. Anyone go through anything similar, were you deemed eligible by FINRA? and how will having this on my brokercheck impact future employment?
FYI I'm in New York, expungement isn't an option (if you can even get dismissed things expunged) I was fingerprinted so this will surely show up on any background check, and I'm gonna disclose to FINRA anyway.
Based on the most helpful WSO content, here's what you need to know:
FINRA Disclosure: Since the charge was related to fraud (even though it was dismissed), you are correct that you will likely need to disclose it on your FINRA application. FINRA takes fraud-related charges seriously, even if they were dismissed, as they assess the character and integrity of applicants.
Statutory Disqualification: You mentioned that you are not statutorily disqualified, which is a good sign. Statutory disqualification typically applies to more severe offenses, such as felonies or certain misdemeanors directly related to the securities industry. However, FINRA still has discretion to evaluate your eligibility based on the circumstances of your case.
Impact on BrokerCheck and Employment: While the dismissal is a positive outcome, the fact that you were fingerprinted and the charge was fraud-related means it could still appear on background checks and BrokerCheck. Employers in the financial industry may view this as a red flag, especially since fraud is considered a "dishonest" crime. However, the dismissal and your proactive disclosure can work in your favor, as it shows transparency and accountability.
Similar Experiences: From WSO threads, individuals with misdemeanor charges (including fake ID-related ones) have had mixed outcomes. Some have faced challenges with offers being rescinded or compliance departments raising concerns, while others have successfully navigated the process by being upfront and demonstrating personal growth. For example, one user shared that a fake ID charge cost them multiple summer analyst positions due to compliance concerns, while another noted that misdemeanors unrelated to the securities industry had no effect on their job prospects.
Next Steps:
While the situation is not ideal, many professionals have overcome similar challenges by being upfront and demonstrating their commitment to ethical behavior moving forward.
Sources: Worried about getting an IB job after an arrest?, underage/fake ID charge, Worried about getting an IB job after an arrest?, Fake ID's as a Summer Analyst - To be or no to be?, Everything You Need To Know About Background Checks and Lying on your Resume
Speak to a lawyer dawg
Seriously speak to a lawyer. Talking about it to finra might jeopardize things
Better Call Saul
You had a fake “idea”? Seems rough dawg.
FINRA's pretty flexible as long as it's not a felony or finance misdemeanor. do you have any self regulatory bodies to deal with? I found CFAI was a bitch when I had a charge from my ex that was adjourned.
Elaborate.
technical term was an ACD. Essentially they said we can't determine merit, so don't do anything for a year and it goes away.
Play stupid games, win stupid prizes…
Form U4
I do not think FINRA would care this type of fraud. It does not involve securities or money. It is just a dumb thing that a kid would do.
14B. (1) Have you ever:
(a) been convicted of or pled guilty or nolo contendere ("no contest") in a domestic, foreign or military
court to a misdemeanor involving: investments or an investment-related business or any fraud, false
statements or omissions, wrongful taking of property, bribery, perjury, forgery, counterfeiting,
extortion, or a conspiracy to commit any of these offenses?
(b) been charged with a misdemeanor specified in 14B(1)(a)?
I know this FINRA lawyer in New York if you're interested?
You should definitely speak to a FINRA specialized lawyer. FINRA's rules are pretty archaic, and if you technically were charged with misdemeanor fraud, you may be liable to report it, but definitely speak to a lawyer.
It's really dumb how you could hypothetically be charged with a crime, go to trial, be found not guilty, and still have to report that.
That said, you'll probably be fine. Most firms don't ask about criminal charges on their online applications, and those that do almost never ask about anything that isn't a felony or non-securities related misdemeanor, so firms will only see this during the background check stage, and you should be fine at that point.
The biggest concern, as you noted, is if this shows up on BrokerCheck since anyone can see what's on there at any point. I'm not totally sure if it will, so you need to speak to a lawyer, but based on the below excerpt from FINRA, I don't think it will show up:
I guess it comes down to what they consider to be a "breach of trust," but as the examples they give for that are disorderly conduct and assault, I don't think your Fake ID charge would count as a breach of trust.
Speak to a lawyer though.
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