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Regulation and Compliance > Federal Regulation > FINRA

FINRA: Ex-Advisor Group Broker Lied About CBD Oil Side Hustle

By Jeff Berman

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What You Need to Know

  • Advisor Group's Woodbury Financial terminated a broker over unapproved outside CBD business activities.
  • The ex-broker then provided FINRA with false info about her actions.
  • Not cooperating with a FINRA investigation is a surefire way for brokers to be barred.

The Financial Industry Regulatory Authority barred a former broker for Advisor Group’s Woodbury Financial who allegedly provided false information to FINRA about unapproved, cannabidiol (CBD) oil business activity she had conducted while she was with the firm.

Without admitting or denying FINRA’s findings, Suzanne Therese Charrin signed a FINRA letter of acceptance, waiver and consent on Jan. 5, consenting to FINRA barring her from associating with any FINRA member firm in all capacities. Suzanne H. Bertolett, senior counsel for the FINRA Department of Enforcement, signed the letter on Tuesday.

Advisor Group and David Olsky, a partner at Fortis Law Partners who represented Charrin, could not immediately be reached for comment on Wednesday.

Charrin joined Woodbury in 2005 and was registered as an investment company and variable contracts products rep from Jan. 3, 2005, until April 19, 2022; and as a general securities representative from June 2, 2015, until April 19, 2022, according to her report on FINRA’s BrokerCheck website.

False Info Provided Multiple Times

On April 19, 2022, Woodbury filed an Amended Form 5 Uniform Termination Notice, disclosing it discharged her for “participating in an unapproved outside business activity and for conducting prohibited activities through a previously approved outside business activity which were not consistent with the firm’s policies and procedures,” according to a disclosure on her report.

In connection with FINRA’s investigation into allegations that Charrin was engaging in an undisclosed outside business activity, staff for the industry self-regulating group issued a request to Woodbury for documents and information.

“Charrin provided false information in response to this request,” despite being “aware at the time that her statement would be submitted to FINRA in response to a request for information issued to Woodbury,” according to FINRA.

Charrin provided her statement for submission to FINRA on July 22, 2021. In her statement, “Charrin falsely stated that her outside business activities involved the extraction of lavender oil and manufacture of lavender oil products, when in fact, both businesses were involved in the cannabidiol (CBD) oil industry,” according to FINRA.

Then, during her on-the-record testimony on Dec. 14, 2022, “Charrin admitted that she had provided false information to FINRA in response to this request,” FINRA said.

FINRA also issued two requests to Charrin for documents and information and she “again provided false information in response to these requests,” according to FINRA.

In the request for documents and information that FINRA submitted to Charrin, she, on Nov. 15, 2021, stated her ”outside business activity had not manufactured or tested any products when, in fact, the outside business activity involved the manufacturing and selling of CBD products since at least late 2020,” FINRA said.

On Aug. 8, 2022, FINRA staff issued another request to Charrin, including a request for a copy of Charrin’s 2021 income tax returns. On Sept. 3, 2022, Charrin produced her tax returns, but “falsely represented to FINRA staff that her accountant had incorrectly described the nature of one of her outside business activities on her federal tax return as involving CBD oil business, rather than lavender oil business,” FINRA said.

As a result of her actions, Charrin violated FINRA Rules 8210 and 2010, FINRA said. Not cooperating with a FINRA investigation is a surefire way for brokers to be barred.

(Photo: Adobe Stock)

Jeff Berman

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