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FINRA Suspends Former Stifel Rep for Undisclosed Customer Settlements

Posted on June 19th, 2026 at 2:25 PM
FINRA Suspends Former Stifel Rep for Undisclosed Customer Settlements

From the desk of Jim Eccleston at Ä¢¹½´«Ã½

The Financial Industry Regulatory Authority (FINRA) has suspended a former Stifel representative for three months and imposed a $10,000 fine after finding that she settled customer complaints without notifying her firm and conducted securities-related communications through an unapproved personal device.

According to ThinkAdvisor, Jennifer L. Basey worked for Stifel in Fort Myers, Florida from January 2020 through November 2023. She consented to FINRA's findings without admitting or denying them in an Acceptance, Waiver and Consent ("AWC").

FINRA determined that Basey paid two customers more than $1,300 over three separate occasions between July 2021 and June 2023 to resolve complaints without obtaining her firm's knowledge or approval. FINRA found that this conduct violated FINRA Rule 2010, which requires associated persons to observe high standards of commercial honor and just and equitable principles of trade.

The regulator concluded that Stifel remained unaware of both the customer complaints and the payments because Basey failed to report them. FINRA further found that she provided inaccurate responses on firm compliance questionnaires by stating that she had not received customer complaints when, in fact, she had already received complaints and made payments to customers.

FINRA also found that Basey exchanged approximately 480 text messages with the customers through her personal mobile phone. The messages reportedly involved securities-related business, including investment recommendations, customer transactions, complaints, and discussions regarding the payments she made to the customers.

Because Basey used an unapproved communication channel, FINRA concluded that she caused Stifel to maintain incomplete books and records. ThinkAdvisor reports that the firm could not capture, review, or supervise the communications as required under its supervisory obligations.

According to FINRA's findings, Basey repeatedly certified in annual compliance questionnaires and employee certifications that she did not use personal text messaging for business purposes and understood that business-related texting was prohibited. FINRA determined that those certifications were inaccurate.

Ä¢¹½´«Ã½ LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

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