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Catheryne June Downs Fined and Suspended for Failure to Provide Timely Notice of Outside EIA Sales

The Financial Industry Regulatory Authority (FINRA) suspended broker Catheryne June Downs for six months and fined her $10,000 for failing to provide her firm with prompt written notice of equity-indexed annuities (EIA) sales she had made outside of its confines.

FINRA Case #2010024183401

Associated with Commonwealth Financial Network and also known by her maiden name Catheryne June Bandurraga, Downs was found to have sold nearly 200 EIAs through a personal financial coaching business. The sales totaled $12.5 million, of which Downs received $935,000 in commissions. However, Downs was found to have failed to notify Commonwealth about the sales, even though Commonwealth policy clearly stated, "all EIA sales must be made through the broker/dealer," as opposed to outside the firm.

During its investigation, the firm discovered that Downs had deliberately bypassed firm oversight, instead submitting EIA applications directly to an outside insurance company, in violation of both firm and FINRA policy and rules. Though this conduct increased Downs' personal profit, it placed investors in a position where they were liable to incur unnecessary risk due to Downs' sidestepping of various FINRA-related regulations.

As a result, Downs was suspended until Nov. 6, 2012.

If you invested with Catheryne June Downs a/k/a Catheryne June Bandurraga or believe a broker has engaged private securities transactions or other business activities outside of his or her brokerage firm which harmed your investments or interests, please call The Law Offices of Jonathan W. Evans & Associates at (800) 699-1881 for investigation and consultation.

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