Criminal Background and Brokers

J

jwcapital

Just curious. Everyone today seems to run credit checks and criminal background checks. Has anyone ever been denied an account at a brokerage firm (futures or stock) because of a felony or misdemeanor conviction or any crime? I have never seen a question on a brokerage application that asks about it, like I've seen on job applications. Just curious, for I have a relative who wants to apply for an account and is afraid of being rejected. Thanks for your input.
 
I dont think having the record will prohibit you from getting an account. When I was 16 my cousin was raped and the kid who did it's dad was the local DA so he got away with it. About 3 weeks after it happened another of my cousin's and I ran into him at a party and beat him up, he was in the hospital for 3 weeks. Of course his dad was not happy. I was 16 and charged as an adult for felony assault, attempted murder, heyham and a couple other things. I got lucky in that I was relatively popular in school (class president) and several teachers liked me and came to court and said what a great guy I was and how they could not imagine me ever doing something like this again, so in my case I did not get sent away or go to jail, but I did end up with the felony assault. Like I said, it was not an issue opening an account..it did however become a huge issue when I started to manage money for others and the need to be licensed comes up. I ended up spending a ton of money to have my record expunged, so its not there anymore and I was able to get on with things. But anyhow, back to the point of your question, as long as the felony did not involve fraud against a broker or something like that, they probably wont care and will let you open the account.
 
You could have a record and still get a series 7 license (albeit, after a length of time) so having a brokerage won't prohibit a "criminal" from getting an account, unless the crime in question was securities and or fraud related.
 
Quote from Brandonf:

I dont think having the record will prohibit you from getting an account. When I was 16 my cousin was raped and the kid who did it's dad was the local DA so he got away with it. About 3 weeks after it happened another of my cousin's and I ran into him at a party and beat him up, he was in the hospital for 3 weeks. Of course his dad was not happy. I was 16 and charged as an adult for felony assault, attempted murder, heyham and a couple other things. I got lucky in that I was relatively popular in school (class president) and several teachers liked me and came to court and said what a great guy I was and how they could not imagine me ever doing something like this again, so in my case I did not get sent away or go to jail, but I did end up with the felony assault. Like I said, it was not an issue opening an account..it did however become a huge issue when I started to manage money for others and the need to be licensed comes up. I ended up spending a ton of money to have my record expunged, so its not there anymore and I was able to get on with things. But anyhow, back to the point of your question, as long as the felony did not involve fraud against a broker or something like that, they probably wont care and will let you open the account.
More...

Ooops!

I did not expect it you from you Brandonf. But in fact you did very good job.
 
Quote from CHACHA420:

Ooops!

I did not expect it you from you Brandonf. But in fact you did very good job.
More...

What was unexpected? I try to do everything well :)
 
oh, the title of this thread is irresistable.

like they used to say on the NYBOT, "most of the guys here are on work-release."

yeah, ivy-league wannabes might thumb their noses at you, but I think the rest would just line up to take your money.
 
Quote from Brandonf:

...charged as an adult for felony assault, attempted murder, heyham and a couple other things...
More...
Holy smokes, did they try to pin the Kennedy assassinations on you, too?
 
You must log in or register to reply here.
Back
Top