FINRA: Ex-Brokerage Employee Fails SIE Exam, Despite Cheating
The Financial Industry Regulatory Authority has filed a complaint against Joshua Scholnick, a former employee of financial services company MML Investors Services, LLC, for allegedly cheating on the Securities Industry Essentials, or SIE, examination. The Department of Enforcement’s complaint, filed on Sept. 10, 2025, asserts that Scholnick used his mobile phone to access unauthorized study materials during the remote exam.
The SIE exam is a foundational test for prospective securities industry professionals, assessing knowledge of a wide range of topics, from securities products to market regulations.
According to the complaint, Scholnick took the SIE exam from his home on Aug. 25, 2023. During the test, he is alleged to have used his phone to view photographs of notes and study materials he had compiled. This occurred despite his prior agreement to abide by the SIE Rules of Conduct, which strictly prohibit the use of phones, notes, and other study materials during the examination.
The complaint details several instances of alleged misconduct. The examination proctor reportedly noticed Scholnick looking away from his laptop screen multiple times and twice instructed him to keep his eyes on the screen, citing it as a violation of test rules. The documents allege that Scholnick used the study materials on his phone to help him answer questions and subsequently changed his answers.
Despite the alleged cheating, Scholnick failed the exam, receiving a score of 65%. A passing score of 70% is required to pass the test.
Scholnick had been associated with MML Investors Services since March 2023 as a new business coordinator. On March 22, 2024, the firm filed a Uniform Termination Notice (Form U5) stating that Scholnick had been “permitted to resign” after FINRA notified the company of a potential incident involving a mobile device during the SIE exam. Although no longer registered with a FINRA member, Scholnick remains under the organization’s jurisdiction for disciplinary purposes.
FINRA alleges that Scholnick’s actions violated FINRA Rule 1210.05, which governs the Rules of Conduct for the SIE exam, as well as the broader FINRA Rule 2010, which requires individuals to observe “high standards of commercial honor and just and equitable principles of trade.” FINRA is requesting that a disciplinary panel find Scholnick committed the violations and impose sanctions, which could include fines, suspension, or a permanent bar from the securities industry.
MML Investors Services is a financial services company and a subsidiary of Massachusetts Mutual Life Insurance Company (MassMutual). It operates as a broker-dealer and a registered investment adviser, offering a wide range of financial products and services.
Click here to visit the AltsWire directory page.
