BOSTON—A former financial advisor for Corning (New York) CU was fined $10,000 and suspended ten days for loading up a computer flash drive with member information when he left the credit union to take a new job with Wachovia Securities, now a unit of Wells Fargo.
The Financial Industry Regulatory Authority, the broker-dealer regulator known as FINRA, found that Steven Tomlinson, who was a joint employee of the credit union and Raymond James Financial Services, downloaded member files, including social security numbers, addresses and account information, in violation of both companies’ internal policies, when he left the credit union in November 2008. He planned to use the member information to solicit businesses with his new company, Wachovia.
The Chief Information Officer at Corning CU later found that Tomlinson had non-public member information on his laptop and cellphone, as well as the flash drive, all of which were supposed to be wiped clean upon his departure from the credit union—per a non-compete agreement he had signed with the credit union.
Tomlinson later admitted that he downloaded confidential information for more than 2,000 credit union members without authorization during business hours and late at night when he was alone in his office. Some of the information related to his clients, while other information was from customers of other financial advisors at the credit union. About 60% of the customers were not Tomlinson’s.
Wachovia had expressly instructed Tomlinson not to bring this information with him.
FINRA ordered him to serve his suspension from May 20, 2013 until June 3, and to pay the $3,000 cost related to the disciplinary hearing.
