Criminal Defense Lawyers

I Got a FINRA Complaint – Can I Settle the Case Quietly?

Last Updated on: 17th March 2025, 12:09 am

AS SEEN ON MAJOR NEWS OUTLETS

If you’re reading this, it probably means you got a FINRA complaint that was served on you, and you’re panicking about what might come next. You might be thinking you can fix it under the radar without anyone else knowing. You might be hoping you can just pay a fine and move on. But is it really that simple?

I’m here to put you on notice: a FINRA complaint that was filed against you isn’t something to shrug off. It’s serious. There can be penalties that are severe, and there can be consequences that last for years. If you ignore it, you could end up losing your license, your livelihood, and maybe even your freedom if criminal charges get involved.

WHO WE ARE

Spodek Law Group, is a premier, and award winning, New York / Federal criminal defense law firm created by Todd Spodek. Our team has over 50 years of combined experience. We are recognized nationwide for our experience dealing with federal investigations, state-level prosecutions, and FINRA disciplinary actions. We have offices throughout New York City, and we can help you no matter where you’re located. We’re available 24/7 to give you a risk free consultation.

Some people think you can quietly settle a FINRA complaint that was filed against you by cutting a quick deal. Maybe you can. Maybe you can’t. There are different factors that were put in place by FINRA that dictate exactly how these settlements work, and whether it stays hush-hush or not.

WHY A FINRA COMPLAINT MATTERS

A FINRA complaint that was initiated against you is more than just an inconvenience. There’s a system of enforcement that exists, and FINRA can impose fines, suspensions, or even a permanent bar from the securities industry. That means you could lose your career if you don’t take it seriously. Each time you try to bury it, you risk making the situation worse. Once FINRA files charges, the potential for a settlement does exist, but that settlement might still appear on your public record. If the complaint leads to an SEC inquiry or a criminal probe, the stakes get higher. You could face criminal charges that were brought by federal prosecutors.

Remember, your reputation can go down the drain if you handle this poorly. A settlement that is reached with FINRA may not remain private, and if it’s posted on SEC documents or BrokerCheck, your clients could see it. That can damage trust and limit your future job possibilities.

CAN YOU REALLY SETTLE IT QUIETLY?

Is there a “quiet” way out? Some individuals who are under investigation hope that they can pay a fine and sign a settlement. If that settlement is accepted, they believe their case is done. It’s not that simple. FINRA typically publishes details of its enforcement actions online, and if your employer or clients search your name, they can find it. The settlement that was negotiated might reduce the impact.

That said, there are certain low-level complaints that can sometimes be resolved with a simple letter of caution or a minor sanction. In that scenario, you might avoid headlines. But don’t fool yourself: even small FINRA actions can show up in your record. If your plan is to hide it from your next employer or from your clients, you’re setting yourself up for disaster if they find out later.

THE PENALTIES THAT YOU COULD FACE

When FINRA comes after you, they can fine you thousands or even millions of dollars. They can bar you from the industry, which can destroy your career. They can impose suspension, which can leave you stuck without the ability to practice. They can refer your case to federal authorities, which could lead to criminal charges. You might think that is an exaggeration, but it’s not. I’m telling you all of this because I want you to understand the scope of what’s at stake. If you get barred from the industry, you lose your license and your source of income. That leads to devastation. It can also lead to social repercussions, because future employers might question your integrity.

In the worst-case scenario, federal prosecutors might swoop in. Evidence that was illegally obtained might be challenged, but if the government has legitimate proof that you committed serious fraud, you could be facing prison time. That is the ultimate bad result.

HOW WE’D DEFEND YOU

We focus on looking at every detail of your case. We look for weaknesses in FINRA’s evidence. We want to get evidence thrown out, because that weakens the case. We check all documentation that was provided by the agency. We scrutinize witnesses who were interviewed by the investigators. Our approach depends on the specifics of your complaint, but we typically do the following:

• Evidence Review: We look for documents that were collected improperly or statements that were coerced. If we spot any illegal procedure, we move to suppress it because that weakens the case. Evidence that was illegally obtained might be thrown out, which can lead to a weaker case against you.
• Negotiation Tactics: If settling is in your best interest, we talk to FINRA with the goal of minimizing sanctions.
• Parallel Investigations: Sometimes the SEC or the U.S. Attorney’s Office might run a separate probe. We coordinate your defense to ensure consistency and to avoid self-incrimination.
• Reputation Control: We develop strategies that aim to limit publicity.

Our philosophy is rooted in pushing for the best possible outcome. We believe you deserve honest representation, and we give you the truth even when it’s not pleasant. We won’t tolerate excuses. If we see holes in your approach, we call them out immediately.

There is no shame in settling if that’s the most effective way to end the matter. But you need to understand the consequences. A settlement that was reached typically appears on your record, which can be found by future employers or clients. Yes, it might protect you from an uglier outcome. Yes, it might keep you from paying an even higher fine. But no, it won’t always stay invisible. You could keep your license, but that settlement might include strict supervision requirements. It might include limitations on your job roles. It might even require restitution to clients. Think carefully about whether that’s your best route.

Remember, a settlement that was done too fast can come back to bite you if you didn’t thoroughly review all the terms of the settlement agreement. Some individuals who are in a rush to sign a settlement end up paying more money than necessary. Others end up with permanent marks on their record that could have been avoided if they had fought. This is why your strategy has to be logical from the start. We make sure you see the big picture before you sign anything.

FAQ

WE’RE HERE 24/7

If you got a FINRA complaint that was handed to you, call us immediately. At Spodek Law Group, we don’t wait. We don’t tolerate excuses. We jump in to protect your rights and your livelihood. Our team is available 24/7 for a risk free consultation. During this consultation, you can ask questions, share concerns, and get honest feedback about your odds. We aren’t promising miracles, but we do promise a relentless commitment to your success.