UPDATE 1-FINRA bars broker accused of stealing $8 mln

* FINRA bars former ING broker Rhonda Breard

* Accused of stealing $8 mln from 38 clients over 4 years

* Breard yet to plead in criminal case (Adds comment from Breard's attorney)

By Helen Kearney

NEW YORK, March 31 (Reuters) - The Financial Industry Regulatory Authority on Wednesday permanently barred a former ING Financial Partners broker from the securities industry over at least $8 million the U.S. brokerage watchdog said was stolen from clients.

FINRA said Rhonda Lee Breard, a Kirkland, Washington-based broker, took the money from at least 38 client accounts and then sent clients false account statements to cover the theft.

Breard carried out the scheme from 2006 until February 2010, according to FINRA. At the time she was a registered broker with ING Financial Partners, a division of ING Groep (ING.AS), and also had her own investment advisory firm called Breard & Associates.

Breard fooled her clients by persuading them to sell investments and make checks payable to her advisory firm in order for her to purchase other investments on their behalf. Instead she transferred the money to her personal account, said FINRA.

Breard neither admitted or denied the charges but consented to the entry of the findings, FINRA said.

She is also facing criminal charges in U.S. District Court in Seattle. Federal authorities are trying to assess her assets in order to repay clients, according to FINRA.

"These are certainly not happy days for Ms Breard," said her attorney, Ronald Friedman, of Seattle-based Lane Powell. "She is very regretful for her conduct and is seeking to address that conduct." Breard has yet to make a plea in the criminal case, said Friedman.

An ING spokesman said ING Financial Partners continued to cooperate with authorities and was focused on moving toward a resolution for affected clients. (Reporting by Helen Kearney; Editing by Tim Dobbyn)