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FINRA Bars Broker for Falsifying Expense Reports

The Financial Industry Regulatory Authority barred a Morgan Stanley Smith Barney broker for allegedly falsifying expense reports, according to a letter of acceptance, waiver and consent issued by FINRA.

Bruce Michael Weinstein was registered with FINRA through Morgan Stanley Smith Barney as a general securities representative from September 2011 until his voluntary resignation in November 2014.

The firm maintained expense reimbursement policies where entertainment expenses were only reimbursable for events attended by both the firm employee seeking reimbursement and one or more firm customers or potential customers.

In May 2014, Weinstein allegedly purchased eight tickets to each of the 2014 New York Giants home football games and two tickets to each of the 2014 New York Jets home football games. He later sold those tickets to third parties.

According to FINRA, Weinstein photocopied all of the tickets and gave them to his assistant to submit for expense reimbursement after the games were played. Between September and October 2014, Weinstein allegedly submitted four expense reports seeking $5,035 in reimbursement for a total of 47 tickets spread over five Giants and three Jets games.

The expense reports falsely represented that he had attended each of the games with firm customers and potential customers, which he had not, according to the AWC letter. The firm paid Weinstein $2,605 before discovering his misconduct and terminating his employment. Submitting false expense reports is a violation of Rule 2010.

As a result of the alleged violation, FINRA barred Weinstein from associating with any FINRA member firm in any and all capacities.

Weinstein is currently associated with Sterne Agee Financial Services and accepted and signed the AWC letter without admitting or denying the findings.

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