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Regulation and Compliance > Federal Regulation > FINRA

Ex-Edward Jones Rep Fined, Suspended for Texting Client Docs

By Jeff Berman

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A former Edward Jones broker accepted a 15-month suspension and $15,000 fine by the Financial Industry Regulatory Authority for using her personal mobile phone to text client documents to a co-worker and then lying about it when questioned by the company, according to a FINRA regulatory filing on Thursday.

The suspension is longer than usual for a broker who violates FINRA rules but isn’t barred from the industry.

Without admitting or denying the regulator’s findings, Delaina Kucish signed a FINRA letter of acceptance, waiver and consent on May 31, agreeing to the regulator’s sanctions. FINRA signed the letter one day later.

Kucish entered the securities industry in May 2001, when she joined Edward Jones, and she became registered with FINRA as a general securities representative two months later, according to her report on FINRA’s BrokerCheck website.

She was with the firm for over 21 years. But, on April 3, 2023, Edward Jones filed a Form 5 Uniform Termination Notice disclosing that Kucish voluntarily terminated her association. She is no longer registered as a broker or advisor, according to her report on BrokerCheck.

Edward Jones declined to comment on Tuesday.

Steven M. Malina, an attorney at law firm Greenberg Traurig who represented Kucish, did not immediately respond to a request for comment.

Multiple FINRA Rule Violations

Between February and July 2021, Kucish used unauthorized text messages on her personal mobile phone to transmit client documents to another associated person at the firm, which caused Edward Jones to fail to preserve business-related text messages as required by the Securities Exchange Act of 1934, Exchange Act Rule 17a-4(b)(4), and FINRA Rules 4511 and 2010, according to the AWC letter.

“By causing Edward Jones to fail to preserve required books and records, Kucish violated FINRA Rules 4511 and 2010,” according to FINRA.

During a subsequent Edward Jones investigation, Kucish “falsely told an Edward Jones investigator that she did not send any client information or documents to the other associated person via text message, in violation of FINRA Rule 2010,” according to the AWC letter.

Then, on Nov. 29, 2021, Kucish submitted a false or misleading written response to a FINRA information request under Rule 8210, according to the regulator.

The written response contained “a false denial that she ever sent client documents via text message to another associated person at the firm,” according to the AWC letter.

“She subsequently admitted in a written response to another Rule 8210 request that she had, in fact, done so,” according to FINRA.

Similar Issue Earlier This Year

Edward Jones terminated another rep that had been with the firm over 21 years for violating its communications policies earlier this year.

According to a disclosure on his BrokerCheck report, Erick Krosky, who served as both a broker and advisor for Edward Jones, “did not adhere to Firm policies relating to communications with clients, including text messaging.”

The disclosure went on to say Krosky “admitted to deleting text messages prior to an unannounced branch audit.”

(Image: Shutterstock)

Jeff Berman

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