Background Of William T. Burke
Burke entered the securities industry in December 1984 and first registered with FINRA
in June 1988. In February 2003, Burke registered as a general securities representative
and general securities principal through FTN Financial Securities Corp. (FTN) (now
known as FHN Financial Services Corp.). On October 22, 2019, FTN filed a Uniform
Termination Notice for Securities Industry Registration (Form U5), stating that it had
terminated Burke for a “violation of company policy.” Burke is not currently associated
with a FINRA member firm but remains subject to FINRA jurisdiction pursuant to
Article V, Section 4 of FINRA’s By-Laws. Respondent does not have any relevant
disciplinary history.
Activity(s) Reported – William T. Burke
FINRA Rule 3270 states that “[njo registered person may be an employee, independent
contractor, sole proprietor, officer, director or partner of another person, or be
compensated, or have the reasonable expectation of compensation, from any other person
as a result of any business activity outside the scope of the relationship with his or her
member firm, unless he or she has provided prior written notice to the member, in such
form as specified by the member.” A violation of Rule 3270 also is a violation of FINRA
Rule 2010, which requires associated persons in the conduct of their business to observe
high standards of commercial honor and just and equitable principles of trade.
In July 2011, Burke formed Burke Development Associates Limited Liability Company
(BDA), a family-run real-estate and construction business. Before forming BDA, Burke
disclosed the venture to personnel at FTN, but only in a single, brief oral conversation,
without submitting FTN’s required outside business activity disclosure form. In his oral
disclosure, Burke stated he would merely invest in BDA leading FTN personnel to
believe that he would be a passive investor, when he was not. Notably, Burke did not
disclose that he would be BDA’s sole managing member and tax matters partner, have
signatory authority over BDA’s financial accounts, devote approximately five to ten
hours per month to BDA business, supervise BDA’s activities, and participate in strategic
business decisions.
Therefore, Burke violated FINRA Rules 3270 and 2010
Penalties And Sanctions
- a one-month suspension from associating with any FINRA member firm in any
capacity and - a $5,000 fine.
The fine shall be due and payable either immediately upon reassociation with a member
Firm, or prior to any application or request for relief from any statutory disqualification
resulting from this or any other event or proceeding, whichever is earlier. Respondent
specifically and voluntarily waives any right to claim an inability to pay, now or at any
time after the execution of this AWC, the monetary sanction imposed in this matter.
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Respondent understands that if he is barred or suspended from associating with any
FINRA member, he becomes subject to a statutory disqualification as that term is defined
in Article III, Section 4 of FINRA’s By-Laws, incorporating Section 3(a)(39) of the
Securities Exchange Act of 1934. Accordingly, he may not be associated with any
FINRA member in any capacity, including clerical or ministerial functions, during the
period of the bar or suspension. See FINRA Rules 8310 and 8311.
Recent Activity(s)Of The Individual/Firm
From July 2011 until August 2019, Burke violated FINRA Rules 3270 and 2010 by
participating in a family-run construction and real-estate business without providing prior
written notice to his member firm.
