The Financial Industry Regulatory Authority (FINRA) is suing a family-owned consulting firm for selling questions to FINRA exams that were obtained through the retaking of tests more than 60 times. FINRA’s mission is to regulate securities firms that do business in the United States. One of the services it performs is to administer more than 40 qualification examinations that certify those who pass to assume positions in the securities industry.

Christina Leahy is the owner of Southern California-based Training Consultants, LLC, which charges people to help them prepare to take FINRA exams. She stands accused of coming up with a novel method of carrying out this task…having people—namely her three children—take FINRA exams 64 times so that they could memorize the questions. The Leahys managed to retake the tests over and over again thanks to an 81% failure rate.

FINRA claims that the contents of their exams constitute trade secrets and that the Leahys owe them damages for the theft thereof.

-David Wallechinsky

To Learn More:

Too Sneaky, FINRA Tells Mom & Kids (by Kevin Koeninger, Courthouse News Service)

Financial Industry Regulatory Authority v. Training Consultants (U.S. District Court, Central California) (pdf)