August 16, 2022 – An OHO decision became final in which Velten (CRD #2291911) was barred from association with any FINRA member in all capacities. The sanction was based on the findings that Velten failed to produce information and documents requested by FINRA in connection with its investigation into an allegation that he had churned and flipped customer accounts by encouraging his elderly customers to surrender their annuities, sell their mutual funds, and invest the proceeds into bonus annuities.
The findings stated that FINRA needed the information it requested from Velten to perform its regulatory function and fully investigate potential misconduct. FINRA investigated allegations that Velten had improperly traded for elderly customers away from his firm, causing his customers to incur significant, unnecessary surrender charges so that he could generate sales commissions. Velten’s failure to respond to regulatory requests deprived FINRA of this information and documents and frustrated its ability to fulfill its regulatory responsibilities. (FINRA Case #2020066032801)