Regulators have accused a former MML Investors Services-affiliated broker of cheating on the Securities Industry Essentials exam, which he took from home and failed.
On Aug. 25, 2023, Joshua E. Scholnick cheated on the exam by using his phone to view prohibited study materials to help answer test questions, the Financial Industry Regulatory Authority's enforcement department said in a complaint filed with FINRA hearing officers last week.
"He did so after acknowledging and agreeing to follow FINRA’s SIE Rules of Conduct, which forbid possessing or using phones, notes, and study materials during the examination," violating FINRA rules, the department said.
Scholnick was registered through MML Investors from December 2023 to March 2024, when he was permitted to resign after the firm received notice that he had potentially possessed a mobile device during an SIE exam, the complaint states. He had become associated with the firm in March 2023, when he started work as a new business coordinator supporting its securities business, it says.
Scholnick was based in New Castle, Delaware, his FINRA BrokerCheck profile says.
The SIE is a FINRA examination for prospective securities industry professionals to assess their knowledge of basics such as types of securities products and their risks, market structure, regulatory agencies and prohibited practices. The test comprises 75 multiple-choice questions and takes an hour and 45 minutes to complete, FINRA says.
Before taking the exam, Scholnick used his mobile phone to take photographs of notes and reference materials that he had compiled to study, FINRA enforcement officials allege. The photos were on his phone on Aug. 25, 2023, when he logged onto the remote testing platform from home to take the SIE examination, the complaint alleges.
Scholnick viewed study materials photos on his phone numerous times during the examination, referred to the study materials to help him answer exam questions and changed his answers after referring to the materials, the regulators allege.
"During the examination, the proctor asked Scholnick why he was looking down continuously and twice told him not to look away from his laptop screen during the examination as it was a violation of the test rules," the complaint states.
Scholnick completed his exam and exited the platform without notifying the proctor, it says.
"Scholnick received a score of 65% and failed the test," which requires participants to answer at least 70% of questions correctly to pass, the complaint states.
Scholnick didn't immediately respond to a message ThinkAdvisor sent via LinkedIn.
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