This may not be what you want to hear, but how is it unfair and discriminatory if you knew you would have to pay it back if you didn't meet the performance hurdles?

Also, you stated: "

Paid back most of the promissory note but slightly less than 1/4 remains" Does that mean you only owe 1/4 right now?

This may not be what you want to hear, but how is it unfair and discriminatory if you knew you would have to pay it back if you didn't meet the performance hurdles?

Also, you stated: "

Paid back most of the promissory note but slightly less than 1/4 remains" Does that mean you only owe 1/4 right now?

This may not be what you want to hear, but how is it unfair and discriminatory if you knew you would have to pay it back if you didn't meet the performance hurdles?

Also, you stated: "

Paid back most of the promissory note but slightly less than 1/4 remains" Does that mean you only owe 1/4 right now?

This may not be what you want to hear, but how is it unfair and discriminatory if you knew you would have to pay it back if you didn't meet the performance hurdles?

Also, you stated: "

Paid back most of the promissory note but slightly less than 1/4 remains" Does that mean you only owe 1/4 right now?

Sorry I have no idea how I posted that last one…but my advice would be to hire an attorney, even if you think you cannot afford one, offer to pay him from your retirement account if he can get a settlement.

The Firm was awarded what was remaining on my note (prorated for time served).  As for taking the money out of my retirement account; 10% pre-59 1/2 penanty and 25% marginal bracket = I should be subjected to a 35 % tax to pay a attorney that would do what ?  Try to settle for what ?  Why pay the attorney when I could use the cash to pay back the firm.  I really appreciate your response.

Any more seasoned opinions out there ?

Well, if I were you I would research and ask around and find out who 'the best' or really good securities attorney is, and set an appt for an initial consultation with that person and tell him/her your whole story as above. You could possibly arrange to pay the attorney on a mthly payment plan if they take your case. I bet they could negotatiate a better deal for you than you could representing yourself.

I have 8 years in this business and an impeccable record like you. Good luck, now I will be quiet and let other posters respond.

Bill, I appreciate your opinion.  As I noted, I don't have 100% of the funds to pay the award in 30 days. The answer that I am looking for I guess is:   Has FINRA ever suspended an advisor because he didn't have 100% of the award  in cash ? (promissory note / industry related).  Have they ever allowed the Advisor to make installment payments to satisfy an award ?  Also, are there FINRA enforcement results in the cases of suspensions relative to promissory issues available somewhere on-line ?

I have an IRA with less than 20m and a car worth about 7m (paid).  Would FINRA make me liquidate my IRA at a 35% penalty and sell my car to pay some of the award.  How would I get to work ? Would they also make me liquidate all of my household items, furniture and stuff in my garage ?

As I mentioned, I owe the $ and I want to pay the Firm back but why should they take my ability to earn a living away ?  I'm 55 and wouldn't know what I could do to earn a living. 

Is there light at the end of the tunnel ? 

So would it be best to liquidate what I can and hire an attorney to represent me post award ?  Is there a strategy that they could use that would help me keep my license ?

So would it be best to liquidate what I can and hire an attorney to represent me post award ?  Is there a strategy that they could use that would help me keep my license ?

If you have a substantial IRA (which I hope you do at 55) then look at a 72T and see if your old firm will take sytematic and equal payments until your 59.5 then you can make a lump sum.  You could even sign some form of document that would pledge the assets to the firm and would send the payments directly from your IRA to the firm.  It would still count at ordinary income but would avoid the penalty.  

You may also do a IRA distribution once every calender year for 60 calender days without any penalty or taxes and then pay it back ( or a portion).  If you have a big month coming up try that ease the pain. 

You should consider sell part of your practice to a new firm or partner who has money and wants to grow his or her practice.  List with FP Transitions or use your network.  

Speek with your CPA but I think that you maybe able to offet some of that 35% hit on your IRA if you have you payback your award.  

Don't take this the wrong way but definately get some professional advice from a securities attorney and or CPA. Penny wise ...dollar foolish.  

Finally....

Stop the whining and end the pity party...it's not productive.

Liquidate your IRA and pay up.  (If you can part in 2011 and the rest in 2012). Pay yourself less those years to minimize the tax burden from the IRA liquidation and move on.  Get in early and stay late and grow your business and do a huge SEP untill this money is paid back. This distraction is got to be killing your production, family life, and health.

Revenge and anger should be a great motivator.  Your clients and family deserve 100% of your attention move on! 

Good Luck. 

RWM, respectfully, the OP explained almost exactly how much is in his IRA:  "I have an IRA with less than 20m..."

To the OP, I feel badly for you.  I can understand how you got into that bind.  I think many of us have seen clients and friends who are in tough financial situations that they never imagined could happen.  Although I'm not an attorney, what Mr. Singer is saying makes sense: A deal is a deal, and the rules are rules.  At this point I think you are looking for clemency, but it seems as though your counterparty is not inclined to show any, rather, they are intent on bringing the full force of contract and enforcement rules down on you. They're long that option.

I don't mean to be cold, because I do think your predicament is tough.  The best [non-legal] advice I can give is simple.  Are you prepared to liquidate enough assets to satisy the decision?  Even if that means short selling your home or forcing foreclosure?  If not, then you are choosing those over your career as a registered rep.  That's not necessarily a bad decision, but it is your decision to make.

If you are not able to raise the cash, even through extreme measures, then you are unfortunately in the position of living with the consequences of past decisions, i.e. "chose not to segregate the funds and put your career at risk."  

Please research the following extensively, but here is a question worth asking:  If you forfeit your Series 7, can you still operate as an RIA? 

Give me a call.  I'm putting my phone number in this format to thwart spambots: Six Four Six, Too Too Onu, Tree Tree Nin Eight.

Look, I think some of the comments with the moralizing "you knew what you were doing" and "pay your debt scumbag" insinuations are uninformed and unhelpful.  I was an attorney prior to my days as an advisor, and it is clear that you will be able to raise an "inability to pay" defense.  The former firm's inability to reasonable re: repayment is critical information that will help you in any hearing.  They may the right to get the repayment, but tactics that simply are designed to run you out of the business work against any claim at good faith settlement.  I would hire an attorney on this one, but also make sure to send a reasonable payment schedule and get the former employer to explicitly reject your repayment offer prior to the hearing.