The Financial Industry Regulatory Authority said Monday that it barred James Van Doren, a former Citigroup broker, from the securities industry for unethical conduct involving money laundering and a scheme to deceive a friend’s creditors and facilitate violations of law, including conspiracy to commit bankruptcy fraud.
The Monday ruling resolves charges brought by FINRA’s Department of Enforcement in October 2014 and in its amended complaint.
The default decision finds that Van Doren engaged in unethical conduct in violation of FINRA rules by helping a childhood friend and business associate evade legal obligations by deceiving his creditors.
Van Doren had invested in several real estate deals with his friend’s company in an outside business activity.
“When the company was not able to meet its obligations, creditors attempted to claim the friend’s assets. On three separate occasions, Van Doren accepted a total of $244,000 from his friend, including $30,000 in cash in a briefcase, with the purpose of concealing the assets from the creditors,” FINRA states.
He later returned most of the money to his friend and retained some of the money to offset financial losses he suffered. On one occasion, Van Doren made false representations to his own bank in an effort to obtain additional funds, according to FINRA.