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NOTE: Offers of Settlement (OS) and Letters of Acceptance, Waiver, and Consent (AWC) are entered into by Respondents without admitting or denying the allegations, but consent is given to the described sanctions and to the entry of findings. 2006
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Mary Frances Spears #E3B20040231-02/December 2006 Spears participated in private securities transactions and also engaged in an outside business activity for compensation without providing her member firm with the requisite prior written notification. Also, she recommended securities transactions to public customers without having reasonable basis for believing the investment was suitable based on the customers’ financial situations and needs. Mary Frances Spears : Barred |
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James Clayton Mulholland Jr. AWC/#20050020324-01/December 2006 Mulholland engaged in an outside business activity without providing his member firm with prompt written notice. James Clayton Mulholland Jr.: Fined $10,000; Suspended 90 days in all capacities |
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Richard Albert Hellmann AWC/#20050016607-01/December 2006 Hellman engaged in outside business activities for compensation and failed to provide his member firm with prompt written notice. Richard Albert Hellmann : Fined $5,000; Suspended 30 business days in all capacities |
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Greg B. Whittington AWC/#2005000731201/November 2006 Whittington engaged in outside business activities, for compensation, without providing prior written notice to his member firm. Greg B. Whittington: Fined $5,000; Suspended 10 business days in all capacities |
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Brian T. Ungerer AWC/#2005002435801/November 2006 Ungerer engaged in outside business activities without providing prompt written notice to his member firm. Brian T. Ungerer: Fined $5,000; Suspended 60 days in all capacities |
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Marvin Ray Koerselman AWC/#2005001737201/November 2006 Koerselman engaged in outside business activities and failed to provide his member firm with prompt written notice. Koerselman completed and submitted questionnaires to his member firm wherein he falsely indicated that he was complying with the firm’s requirement that he not accept customer checks made payable to him. Marvin Ray Koerselman : Fined $10,000; Suspended 3 months in all capacities |
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Ryan Michael Jindra (Principal) AWC/#20060045274-01)/November 2006 Jindra participated in outside business activities, for compensation, without providing his member firm with prompt written notice. Ryan Michael Jindra : Fined $5,000; Suspended 30 business days in all capacities |
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Carmine DePalma (Principal) #ELI20040233-01/November 2006 DePalma
Carmine DePalma : Barred |
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Claude Eugene Crump (Principal) AWC/#2005003350801/November 2006 Crump engaged in an outside business activity from which he received compensation and failed to provide prompt written notice to his member firm. The findings stated that Crump disseminated sales literature to public customers without his member firm’s written approval. Claude Eugene Crump : Fined $8,000; Suspended 30 business days in all capacities |
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Tyrone Vandelle Burroughs # E072004082401)/November 2006 Burroughs engaged in outside business activities for compensation without providing prompt written notification to his member firm. He gave false written statements to NASD. Tyrone Vandelle Burroughs : Barred |
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Arthur Daryll Pryor AWC/#2005000553701/October 2006 Pryor engaged in an outside business activity and failed to provide prompt written notice to his member firm. Arthur Daryll Pryor : Fined $10,000; Suspended 45 days in all capacities |
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Daniel Keith Poland AWC/#2005003207201/October 2006 Poland engaged in an outside business activity without providing prompt written notice to his member firm. Daniel Keith Poland: Fined $7,500; Suspended 60 days in all capacities |
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Juan Carlos Murillo AWC/#2005001916001/October 2006 Murillo engaged in outside business activities without providing prompt written notice to his member firm. Juan Carlos Murillo: Fined $5,000; Suspended 30 days in all capacities |
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Bruce Paul Knopp AWC/#2005000119301/October 2006 Knopp participated in outside business activities and failed to provide prompt written notification to his member firm. Bruce Paul Knopp: Fined $5,000; Suspended 3 months in all capacities |
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Humberto Daniel Advincula #2005001178801/October 2006 Advincula received $20,000 from public customers for investment purposes, but failed to invest the customers’ funds as intended or return the funds to the customers. Advincula engaged in outside business activities and failed to provide prompt written notice to his member firm. Also, he failed to respond to NASD requests for information. Humberto Daniel Advincula: Barred |
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Queen Esther Robinson AWC/#20050008859-01/September 2006 Robinson engaged in an outside business activity without providing her member firm with prompt written notice. Queen Esther Robinson: No fine in light of financial status; Suspended 30 days in all capacities |
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Charles Lowell Hedrick, Jr. AWC/#2005002282601/September 2006 Hedrick engaged in outside business activities, for compensation, without providing his member firm with prompt written notice. Charles Lowell Hedrick, Jr.: Fined $12,000; Suspended 6 months in all capacities |
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Thomas James Czarnik AWC/#E8A2004084701/September 2006 Czarnik engaged in outside business activities, for compensation, and failed to provide prompt written notice to his member firm. Thomas James Czarnik : Fined $5,000; Suspended 30 days in all capacities |
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Richard Henry Angelotti AWC/#E072004089701/September 2006 Angelotti participated in an outside business activity, for compensation, and engaged in private securities transactions without providing his member firm with prompt written notice. Richard Henry Angelotti: Fined $10,000; Suspended 3 months in all capacities |
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Brad Allan Weaver (Principal) #E8A2004050201/August 2006 Weaver permitted an unregistered person who was also barred from the securities industry to engage in securities transactions. Weaver failed to maintain complete, accurate and current books and records. Weaver guaranteed a public customer against loss in his securities account. Weaver engaged in outside business activities, for compensation, without providing his member firm with prompt written notice. Brad Allan Weaver : Barred |
| Bill Singer's Comment: Frankly, this is an impressive accomplishment. One rarely sees so many varied violations credited to one individual. |
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Stacey Joe McBee #E072004088201/August 2006 McBee opened a securities account with another NASD member firm and failed to disclose to that firm that he was associated with his member firm. He failed to give his member firm written notification that he opened a securities account with another member firm. McBee engaged in outside business activities, for compensation, without giving his member firm prompt written notice of his outside business activities. He failed to respond to NASD requests for information and documents. Stacey Joe McBee: Barred |
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Matthew Jay Forry (Principal) AWC/#2005003237501/August 2006 Forry engaged in outside business activities, for compensation, without providing his member firm with prompt written notice. Matthew Jay Forry: Fined $5,000; Suspended 30 business days in all capacities |
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Herbert Hunt Covington, III AWC/#E8A2004080201/August 2006 Covington engaged in outside business activities and failed to provide prompt written notice to his member firm. Also, he engaged in private securities transactions, for compensation, and failed to give prompt written notice to, or receive written approval from, his member firm. Covington failed to respond to NASD requests for documents and to appear for an on-the-record interview. Herbert Hunt Covington, III: Barred |
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Larry Steven Capstick AWC/#2005001908901/August 2006 Capstick engaged in an outside business activity for compensation without providing his member firm with written notice. Larry Steven Capstick: Fined $5,000; Suspended 30 business days in all capacities. |
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Steven John Balog (Principal) AWC/#E9A2004049802/August 2006 Balog engaged in outside business activities, for compensation, without providing prompt written notice to his member firm. Steven John Balog: Barred |
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Eugene Gilbert Abeyta, Jr. #E3A2004036101/August 2006 Abeyta engaged in outside business activities and failed to provide prompt written notice to his member firm. Also, he failed to respond to NASD requests for documents and information. Eugene Gilbert Abeyta, Jr. : Barred |
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Scott John Van DeHey AWC/#E8A2003084809/July 2006 Van DeHey engaged in outside business activities, for compensation, and failed to give prior written notice to his member firm. Scott John Van DeHey: Fined $10,000; Suspended 60 days in all capacities |
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Todd Michael Tomac (Principal) AWC/#2005003621101/July 2006 Tomac engaged in outside business activities, for compensation, and failed to give prompt written notice to his member firm. Todd Michael Tomac: Fined $5,000; Suspended 2 months in all capacities |
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Steven M. Strube AWC/#E8A2003084804/July 2006 Strube engaged in outside business activities, for compensation, and failed to give prior written notice to his member firm. Steven M. Strube : Fined $5,000; Suspended 10 business days in all capacities |
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Anthony Carl Richter AWC/#E8A2003084807/July 2006 Richter engaged in outside business activities, for compensation, and failed to give prior written notice to his member firm. Anthony Carl Richter: Fined $5,000; Suspended 10 business days in all capacities. |
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Richard William Radez AWC/#20050000292-01/July 2006 Radez recommended purchases of an unseasoned OTCBB security through false representations and omissions of material facts as well as baseless and unrealistic price projections. He recommended the security without reviewing the company’s available current publicly filed financial statements and current material business information, and without determining if there was a reasonable basis for the recommendation. Also, Radez made unauthorized purchases of the security in public customers’ accounts. Additionally, he engaged in a business activity outside the scope of his relationship with his member firm and failed to provide written notice to his firm. Radez failed to respond to NASD requests for documents and to testify truthfully in NASD on-the-record interviews. Richard William Radez: Barred |
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Gordon Ralph Kutz, III AWC/#2005000537401/July 2006 Kutz engaged in business activities for compensation outside the scope of his business relationship with his member firm without providing prompt written notice of his activities. Gordon Ralph Kutz, III : Fined $5,000; Suspended 4 months in all capacities |
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Russell John Kramer AWC/# 2005001902001/July 2006 Kramer engaged in outside business activities for compensation without providing prompt written notice to his member firm. Russell John Kramer: Fined $5,000; Suspended 3 months in all capacities |
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Paul Martin Hoag #E8A2004101701/July 2006 Hoag engaged in an outside business activity for compensation without disclosing it to his member firm or updating his member firm’s outside business activity disclosure form and admitting as much when his firm questioned him. ( Paul Martin Hoag : Barred |
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Phillip Austin Christian #C1020050061/July 2006 Christian engaged in an outside business activity without providing his member firm with prior written notice. Phillip Austin Christian : Barred |
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Timothy Patrick Barry AWC/#E8A2003084802/July 2006 (CRD #2267209 Barry recommended and effected Class B share mutual fund purchases for a public customer without reasonable grounds for believing that the resultant transactions were suitable for the customer, in that Class A shares would have been more beneficial to the customer. Also, Barry engaged in outside business activities for compensation without providing his member firm with prior written notice while he was employed there. Timothy Patrick Barry: Fined $12,578.10 (includes $2,578.10 commissions disgorgement); Suspended 10 weeks in all capacities |
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Andrew Paul Schneider #E1020021320/C1020030088/June 2006 NAC Decision Schneider engaged in outside business activities without providing prompt written notice to his member firm. Andrew Paul Schneider: Fined $5,000; Suspended 60 days in all capacities. |
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Bernardo Misseri OS/#E102003213801/June 2006 Misseri effected private securities transactions and failed to provide written notification to, or obtain written approval from, his member firm. He engaged in an undisclosed outside business activity without providing prior written notification to his member firm. Bernardo Misseri: Fined $15,000; Suspended 2 years in all capacities |
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Eric Spencer Martin AWC/#2005002541201/June 2006 Martin engaged in outside business activities for compensation without providing his member firm with prior written notification. Eric Spencer Martin: Fined $5,000; Suspended 30 business days in all capacities |
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Paul Martin Hoag #E8A2004101701/June 2006 Hoag failed to respond to NASD requests for information and documents. Also, he engaged in outside business activities, for compensation, without providing his member firm with prompt written notice. Paul Martin Hoag: Barred |
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Charles Michael Chiodo, Jr. OS/#2005000887902/June 2006 Chiodo engaged in outside business activities and failed to provide prompt written notice to his member firm. Also, he failed to respond to NASD requests for information. Charles Michael Chiodo, Jr.: Barred |
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Dennis James Vanbuskirk AWC/#20050013644-01/May 2006 Vanbuskirk engaged in outside business activities for compensation and failed to provide prompt written notice to his member firm. Also, he failed to fully and promptly respond to NASD requests for information. Dennis James Vanbuskirk : Fined $5,000; Suspended 60 days in all capacities |
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James Bernard L’Esperance OS/#E8A2002124001/May 2006 L'Esperance engaged in outside business activities for compensation without providing his member firm with prompt prior notice. James Bernard L’Esperance: $2,500 (apparently imposed after consideration of financial status); Suspended 10 business days |
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Roy Golladay, Jr. AWC/#2005001378601/May 2006 Golladay participated in private securities transactions and failed to provide his member firm with prior written notification of his participation in these transactions describing them in detail, his proposed role therein, whether he had received, or might receive, selling compensation in connection with the transactions. He also engaged in outside business activities without providing prompt written notice to his member firm. Golladay solicited $2,000,000 from public customers to fund mortgages, but failed to maintain documentation evidencing what he did with these funds, did not use all the money collected for the stated purpose and transferred portions of the money into other business accounts he controlled, thereby commingling customer funds with the funds of other businesses. Finally, Golladay failed to fully respond to NASD requests for documents and information. Roy Golladay, Jr: Barred |
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David Michael Nelson AWC/#20050010082-01/April 2006 Nelson engaged in outside business activities, for compensation, without providing prompt written notice to his member firm. David Michael Nelson: Fined $5,000; Suspended 10 business days in all capacities. |
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Taihwa Terry Ho OS/#20042000053-01/April 2006 Ho participated in a manipulative scheme or course of business designed to inflate the share price of OTC Bulletin Board-traded issuers and to create the false appearance of active trading in those securities. The manipulative scheme involved the entry of customer buy orders at progressively higher prices and the entry of matched orders to buy and sell shares of the companies. Also, Ho failed to disclose his outside business activities to his member firm. Taihwa Terry Ho: Barred |
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John Alan Wood (Supervisor) AWC/#2005002268201/March 2006 Wood participated in outside business activities for compensation without providing written notice to his member firm. Wood’s suspension began on February 21, 2006, and will conclude on May 20, 2006. John Alan Wood: Fined $5,000; Suspended 3 months in all capacities. |
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Bruce Allan Hager (Principal) AWC/#E0420040447-01/March 2006 Hager participated in outside business activities for compensation without providing prompt written notice to his member firm. He also provided misleading information to NASD. Bruce Allan Hager: Barred |
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Eric Matthew Grace (Principal) AWC/#E0220040695-01/March 2006 Grace engaged in outside business activities without providing prompt written notice to his member firm. Grace participated in private securities transactions and failed to provide prior written notice to, and receive prior written approval from, his member firm. Eric Matthew Grace: Fined $10,000; Suspended 1 year in all capacities. |
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Richard Prim SFC/NYSE Hearing Panel 05-166/February 1, 2006 While employed with Merrill Lynch, Pierce, Fenner & Smith (the "Firm"), Prim sold insurance products to several customers who had been his insurance customers prior to his joining Merrill, and who were not Firm customers. He received approximately $2,000 in commissions for those sales. Prim did not report his outside activity or compensation to Merrill, nor did he make a written request to Merrill, or ever receive oral or written consent from Merrill to engage in such business or to be compensated by any person other than Merrill. On or about December 6, 2002, Prim sold an annuity to LA, a Merrill customer, for a premium of $20,000, which she paid for by check drawn on her Merrill account. On or about May 20, 2003, Prim sold an annuity to VV, a Merrill customer, for a premium of $25,000, which she paid for by wire transfer from her Merrill account. Prim received between $750 and $1,000 in total compensation for the sales to LA and VV. Neither of the above sales was made through the Firm. Prim was advised of Merrill's
policies prohibiting him from engaging in such outside sales at the
times he caused them. Prim did not report the above outside sales or
compensation to Merrill nor did he make a written request to Merrill, or
receive oral or written consent from Merrill to engage in such business or
to be compensated by any person other than Merrill. At all relevant times, Merrill’s procedures required Prim to complete
a Compliance Disclosure
Form-Employee Activity Review System annually. One of the questions
on that form was "Do you hold any outside employment, business
interests…". Prim annually replied in the negative to the
question outlined in paragraph 14 above. He completed such a disclosure
form on May 27, 2003. Prim’s
negative response to the above quoted question on that form was
false. On or about August 21, 2003, the Division of Enforcement of the New York Stock Exchange, Inc. ("Exchange") received a Form U5 (Uniform Termination Notice for Securities Industry Registration) from Merrill stating that Prim had been permitted to resign on July 22, 2003 for selling securities away from the Firm and for having failed to advise that he had received outside compensation. The Hearing Panel found that Prim violated
Richard Prim: Censure; Barred 5 months in all capacities |
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Charles William Naron # C07050048/February 2006 Naron engaged in outside business activities for compensation without providing his member firm with prompt written notice. Charles William Naron: Barred |
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Lawrence Nallie #C8A050004/February 2006 Nallie misused public customers’ funds, and engaged in outside business activities and failed to provide his firm with prompt written notification of his activities. He failed to respond to NASD requests for information. Lawrence Nallie: Barred |
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Susan Lynne Kankaras (Principal) AWC/#2005001707-01/February 2006 Kankara engaged in outside business activities without providing her member firm prompt written notice. Susan Lynne Kankaras: Fined $5,000; Suspended 90 days in all capacities |
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Michael Soden SFC/NYSE Hearing Panel 06-12/January 30, 2006 In early 2002, A, one of RR Soden’s clients at Merrill Lynch, Pierce, Fenner & Smith Incorporated (the "Firm"), invited Soden to participate in a business enterprise that he was establishing, known as “XYZ.” This business would be involved in “staffing and consulting”, specifically with regard to “high level minority candidates.” Soden’s primary responsibility would be to act as a billing service. In or about August 2002, Soden took steps to establish XYZ as a business entity, including obtaining a tax identification number, opening a post office box, and establishing a bank account. When Soden established the bank account, he listed himself as the “managing member” on account documents. Soden also prepared bills for XYZ clients and when payments were made payable to XYZ were received, Soden deposited them in the XYZ bank account. In 2003, at A’s direction, Soden hired an accountant to prepare the taxes for both XYZ and Soden. During his involvement with XYZ, Soden received approximately $30,000 in compensation for his XYZ activities. He received this compensation by writing checks against the XYZ bank account made payable to himself. During the relevant period, Merrill Lynch policies and procedures stated that employees were expected to devote their undivided professional attention to their position at Merrill Lynch. In addition, Merrill Lynch policies and procedures required employees to complete an “Outside Interest Questionnaire” (“Questionnaire”), detailing a proposed interest or activity for written approval, prior to investing or engaging in an outside business activity. In a Questionnaire dated March 20, 2003, Soden disclosed his positions with two charitable organizations, but did not disclose his affiliation with XYZ. Soden did not seek prior approval for his association with XYZ, nor did he discuss his association with XYZ with his supervisor or anyone else at Merrill Lynch. The NYSE Hearing Panel found that Soden violated
Michael Soden: Censure; Barred 3 months in all capacities |
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Glen Niel Harding (Principal) AWC/E9A2004042901/January 2006 Harding engaged in outside business activities for compensation without providing prompt written notice to his member firm. Glen Niel Harding: Fined $5,000; Suspended 3 months in all capacities |
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Regina Eades SFC/NYSE Hearing Panel 06-2/January 17, 2006 Relatives of those interred at a certain cemetery established a trust (the "Trust") for the purpose of paying the costs of maintenance and upkeep of the cemetery. In January 2002, Eades, who was a non-registered employee with Edward Jones (the "Firm"), was elected secretary/treasurer of the Trust and she reported her appointment as an officer of the Trust to the Firm. At that time, the Trust did not have an account with the Firm. After the Firm learned from Eades that she did not have any authority to handle monies or write checks on behalf of the Trust, it approved her affiliation with the Trust. In August 2003, Eades re-applied to the Firm for approval of her position as secretary/treasurer for the Trust. In September 2003, the Firm gave Eades permission to continue her position with the Trust. In November 2003, Eades sought approval to open an account at the Firm on behalf of the Trust. The Firm permitted Eades to open the account but required her to resign her position as secretary/treasurer for the Trust because Firm policies prohibit its employees from holding treasurer positions in organizations that have accounts with Edward Jones. On or about July 2003, Eades entered into a loan agreement with KG, whereby Eades agreed to become a partial owner of KG’s business and share in the company’s future profits. KG was not a customer of the Firm. Over the next several months, Eades loaned KG over $100,000 and thereby acquired an ownership interest in the business. Both Exchange Rule 346(b) and the Firm’s written policy required Eades to obtain the Firm’s written approval before engaging in any outside business activity. Eades never informed the Firm about her business association with KG’s business. Between November and December 2003, Eades borrowed over $80,000 from three customers without the Firm’s prior approval. Eades never notified the Firm that she obtained personal loans from clients. On December 12, 2003, Eades made an unsuccessful bid to borrow money from two elderly customers. A family member of one of the customers contacted Eades’ branch manager and complained about Eades’s attempt to procure a personal loan. The second customer contacted the branch to complain about Eades’ loan solicitation. The Branch Manager, in turn confronted Eades, inquiring whether she solicited loans from two elderly customers. Eades denied asking customers for money. Eades’ denial was a misstatement. The Firm terminated her on December 13, 2003. Shortly after Eades’s termination, the Firm discovered that two checks from the Trust, totaling nearly $8,000, were deposited in Eades’s personal account at the Firm, rather than the Trust’s account. The Firm contacted a trustee for the Trust, who confirmed that the checks deposited in the Eades account were intended for the Trust’s account. Eades’s family fully reimbursed the Trust. The Hearing Panel found that Eades violated
Regina Eades: Censure; Permanent Bar |
| Bill Singer's Comment: A truly breath-taking case involving a prodigious number of serious violations. The only question I have is whether a non-registered employee is given adequate training about industry rules to know that what many non -Wall Streeters take for granted --- that you can freely engage in outside business activity and freely borrow money --- is prohibited in our industry. I'm not suggesting that she needed to be trained as to the wrongfulness of stealing money. That's a given. However, since we see so many of these outside business and borrowing cases, one has to wonder if newbies are getting adequate training. |
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Stephen James Congdon AWC/E8A2004075001/January 2006 While employed with a member firm, Congdon engaged in outside business activities, in that he received a check from a public customer for “financial counsel services” without giving his firm prompt written notice of these outside business activities. Stephen James Congdon: Fined $5,000; Suspended 10 business days all capacities |
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