Basey paid two customers a total of more than $1,300 to settle complaints without her member firm’s knowledge or consent on three different occasions between July 2021 and June 2023. As a result, Basey violated FINRA Rule 2010. Stifel was initially unaware of these complaints or payments because Basey did not report them. Instead, Basey falsely stated in a November 2021 firm compliance questionnaire that she had not received any customer complaints in the past 12 months.

From at least January 2020 through December 2023, tastytrade violated FINRA Rules 4530(d) and 2010 by failing to report to FINRA accurate statistical and summary information regarding written customer complaints. During this period, the firm received, but failed to report, at least 71 written customer complaints. Additionally, during this period, tastytrade violated FINRA Rules 3110 and 2010 by failing to establish, maintain, and enforce a supervisory system, including written procedures, reasonably designed to achieve compliance with FINRA Rule 4530(d).