What You Need to Know
- The ex-Northwestern Mutual rep allegedly converted $44,170 in charitable donations from a pediatric cancer charity.
- The firm found out, ordered him to repay the money to the charity, and allowed him to resign.
- FINRA barred him from associating with any FINRA member firms in any capacity.
The Financial Industry Regulatory Authority has barred a former Northwestern Mutual Investment Services broker-advisor who allegedly converted $44,170 in charitable donations from fundraising events hosted by his branch office at NMIS by transmitting the funds to his personal bank account instead of the pediatric cancer charity they were intended for, according to FINRA.
Roderick Len Whited then “used the funds to pay for his own personal expenses,” the industry self-regulator alleged. It didn’t specify what he spent the money on.
Whited did eventually repay $35,150, after Northwestern Mutual realized what he did and ordered him to give the money to the charity, according to FINRA.
Without admitting or denying FINRA’s findings, Whited signed a FINRA letter of acceptance, waiver and consent on Monday, consenting to a bar from associating with any FINRA members in all capacities. FINRA also signed the letter on Monday.
What Your Peers Are Reading
In October 2013, Whited became registered as an investment company products/variable contracts principal through his association with NMIS, according to FINRA.
But on Feb. 6, 2020, NMIS filed a Form U5, reporting that Whited “was permitted to resign after the Firm discovered that he misused funds raised for a September 2017 charity event he organized,” according to the FINRA AWC letter.
Neither Northwestern Mutual nor Whited immediately responded to requests for comment on Wednesday.
Ordered to Repay
In 2017, while Whited was a managing director of the Gainesville, Florida, branch office of NMIS, the office hosted two fundraising events for a pediatric cancer charity, according to FINRA.
Some of the donations for the fundraisers were made via an electronic payment app, the FINRA AWC letter said. “From August 2017 through February 2018, Whited caused donations made through the electronic payment application, totaling $44,170, to be deposited into his personal bank account by linking the electronic payment application to his account,” FINRA alleged.