Finra Alleges Misconduct by Executives at Failed Fintech Synapse

Another financial watchdog is investigating misconduct allegations against executives at Synapse Financial Technologies Inc., the failed financial-technology firm whose collapse left customers locked out of their savings accounts for months.

The Financial Industry Regulatory Authority is looking into Mark Paverman, the former chief compliance officer at Synapse’s brokerage arm, and that unit’s former president and chief executive officer, Jeffrey Stanley, according to an Aug. 28 complaint.

Stanley allegedly failed to gain proper authorization from customers to open Synapse Brokerage cash-management accounts on their behalf. He also didn’t adequately “investigate red flags of substantial discrepancies” between Synapse’s ledgers and ...