FINRA Fines and Suspends Two Advisers for Failure to Report Felony Charges

The Financial Industry Regulatory Authority fined and suspended two advisers, Joseph S. Hanson and Brian K. Shey, for failing to report multiple felony charges separately brought against them.

Joseph S. Hanson, while he was associated with The O.N. Equity Sales Company, was arrested in the Commonwealth of Virginia. On March 1, 2023, a grand jury returned an indictment charging Hanson with 16 felonies and he was arraigned on March 6, 2023, all while he remained associated with ONESCO. According to the Securities and Exchange Commission, Hanson was charged with multiple accounts of aggravated sexual battery of a child older than 13, among other things.

Although Hanson was aware that he had been charged with these felonies, he never amended his Form U4 to disclose the felony charges and never disclosed the felony charges to ONESCO. Instead, on May 16, 2023, ONESCO discovered that Hanson had been charged with multiple felonies and discharged him later that month.

Hanson consented to an eight-month suspension from associating with any FINRA member in all capacities and a $5,000 fine.

Hanson first registered with FINRA in 2006 as an adviser with Metropolitan Life Insurance Company before moving to Metlife Securities Inc. in 2006. In 2012, Hanson registered as an investment company and variable contracts products representative through an association with ONESCO from February 2012 until May 22, 2023, when ONESCO filed a Uniform Termination Notice for Securities Industry Registration (Form US) stating that it had discharged Hanson for ” fail[ing] to inform the firm or update Form U4 to disclose that he was charged with multiple felonies in November 2022.”

In July 2021, the State of Florida charged Brian K. Shey with two felony counts of submitting a false insurance application and two felony counts of submitting a fraudulent insurance claim that were required to be reported on his Form U4. Shey became aware of the felony charges no later than August 2021 but failed to amend his Form U4 within 30 days, or at any point during his association with Green Vista. The charges were dismissed in July 2022.

Shey consented to consents to the imposition of the following sanctions a four-month suspension from associating with any FINRA member in all capacities and a $5,000 fine.

Shey first became registered with FINRA as a general securities representative in 2005 through Securian Financial Services. In February 2021, Shey registered with FINRA through Green Vista Capital LLC. On Dec. 2, 2021, Green Vista filed a Uniform Termination Notice for Securities Industry Registration (Form U5) disclosing that Shey voluntarily terminated his association with the firm.

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