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.

FINANCIAL INDUSTRY REGULATORY AUTHORITY
FINRA
2009
OUTSIDE BUSINESS ACTIVITIES

VISIT WALL STREET'S LEADING ONLINE COMMUNITY
BrokeAndBroker.com

Stanton engaged in outside business activities without providing prompt written notice to his member firm. 

James Sharpe Stanton: Fioned $2,500; Suspended 20 business days in all capacities

Chavez failed to disclose to his member firm that he opened and maintained a brokerage account at another firm, and failed to disclose to the other firm that he was a registered representative with a member firm. Chavez made material misrepresentations to his member firm about his outside business activity and made material misrepresentations to both firms regarding his outside securities account. Chavez participated in firm audits and compliance questionnaires and falsely reported that he did not participate in any outside business activities. Chavez engaged in outside business activities without providing notice to his member firm and failed to appear for FINRA on-the-record interviews. 

Miguel Alberto Chavez: Barred

Russo failed to provide written notice to his member firm that he was engaged in outside business activities for compensation. While associated with a member firm, Russo opened an account with another member firm and failed to notify either his member firm or the executing member firm, in writing, of his association with the other firm. 

Ronald Peter Russo Jr.: Fined $7,500; Suspended 60 days

Rubin participated in private securities transactions, outside the scope of his employment with a member firm, without prior written notice to, and written permission from, his member firm. Rubin misled the firm each year when he completed Outside Business Activities Questionnaires and stated that he had not solicited and did not plan to solicit clients to participate in private securities transactions, had not raised equity for any private ventures and was not involved in real estate sales. 

Kenneth Scott Rubin: Barred

Quinn engaged in an outside business activity, received $5,149.26 in compensation for his role, and did not provide prompt written notice to his member firm. Quinn failed to appear for a FINRA on-the-record interview. 

Joseph Ryan Quinn : Barred

Kent 

• participated in private securities transactions, received compensation for his participation, failed to provide his member firm with prior written notice, and failed to receive the firm’s prior written approval;
• engaged in outside business activities and failed to provide his firmwith prompt written notice. 
• negligently failed to advise investors and firm customers of material facts concerning a real estate venture and his involvement; specifically, that proceeds from the venture were to be applied towards defaulted bank loans for which he was personally liable. 

Derek Roy Kent: Barred

Eppinga assisted a customer with a purchasing transaction completed outside the scope of his relationship with his member firm, received $6,301.46 in compensation for his role and did not provide his firm with prompt written notice of his outside business activity.  Eppinga failed to appear for a FINRA on-therecord interview. 

Daniel Lee Eppinga: Barred

Waltsak engaged in outside business activities without providing written notice to his member firm, and subsequently failed to respond to a FINRA request for documents and information.

Tyler Anders Waltsak: Barred

Kluge engaged in an outside business activity, for compensation, without prompt written notice to his member firm, and also participated in private securities transactions, for no compensation, and failed to provide his member firm with written notice of the transactions and did not receive the firm’s approval to participate in the transactions. 

Darrel Gideon Kluge: Fined $10,000; Suspended 6 months

Kaeser engaged in an outside business activity and failed to give prompt written notice to his member firm. Kaeser participated in private securities transactions without first providing written notice to his firm. 

Roland Karl Kaeser: Fined $15,000; Suspended 1 year

Gallardo engaged in outside business activities without notifying his member firm. Gallardo signed a statement indicating that he had read and agreed to his member firm’s written supervisory procedures that prohibited registered representatives from engaging in any transaction not sponsored or authorized by the firm. Gallardo provided fictitious monthly account statements to clients purporting to be monthly account statements from his unregistered investment company, and failed to respond to FINRA requests for information.

Hector J. Gallardo: Barred; Ordered to pay $984,774, plus interest, in restitution to customers. 

Frick engaged in outside business activities and private securities transactions without prior written notice to her member firm. Frick was provided a money order by a customer in order to open an account at her member firm on behalf of the customer’s children, misplaced the money order and, in an attempt to settle the customer’s potential complaint in this matter, deposited $1,100 of her own personal funds into an account at her firm for the benefit of the customer’s children without notifying the customer or the firm. Frick used the funds she had previously deposited into the account to purchase mutual funds for the account without the customer’s knowledge, authorization or consent.

Gail Sylvenia Frick: Fined $25,000; Suspended 15 months

Callahan electronically affixed two customer names to three solicitor disclosure statements without their specific authority, and created an email that was purportedly received from the customer, which he forwarded along with the false disclosure statements to his member firm for processing. By creating a false disclosure statement, Callahan caused his member firm to violate the requirements of the Investment Advisors Act of 1940 and, by creating the purported email, Callahan caused his firm’s records to be inaccurate and thereby prevented it from meeting its obligation to preserve, for a period of not less than six years, the first two years in an accessible place, all records required pursuant to SEC Rule 17a-4(b)(4). 

Also, Callahan engaged in outside business activities and private securities transactions without written notice to, or approval from, his member firm. Callahan failed to respond to FINRA requests for documents and information. 

Brian Raymond Callahan: Barred

Brueggemann participated in private securities transactions without prior written notice to, and prior written approval from, his member firm. Brueggemann failed to provide his member firm with written notice of outside business activities and failed to respond to FINRA requests for information. 

Jan Lynn Brueggemann: Fined $25,000; Suspended 1 year; Barred in all capacities

Verostko sold fixed annuities to customers without prompt written notice to his member firmof his outside business activities. Verostko could have sold the fixed annuities through his member firm; however, by conducting the transactions away from the firm, he received $100,000 more in commissions than he would have if the annuities had been sold through the firm. Verostko falsely certified to the firm that he was not engaged in any outside business activities. 

Paul Anthony Verostko: Fined $10,000; Suspended 18 months

Seyller engaged in outside business activities, and received $11,925.66 in compensation, without prompt written notice to his member firm. Seyller falsely asserted on an annual certification statement that he was not engaged in any undisclosed outside business activities and did not receive any referral fees. He falsely denied any involvement with equity indexed annuity sales when a supervisor directly questioned him. 

Fabian Cesar Seyller: Fined $5,000; Suspended 6 months

Lewandowski engaged in outside business activities, and received $442,266.34 in compensation, without prompt written notice to his member firm. Lewandowski falsely asserted on annual certification statements that he was not engaged in any undisclosed outside business activities. 

David Robert Lewandowski: Fined $10,000; Suspended 6 months

Fabian received $104,000 from an individual for the purchase of real estate. That individual requested documentation of his agreement and Fabian falsified a document to create the appearance that the funds paid to him were invested in real estate, but there was no evidence regarding what Fabian did with the money, although he eventually repaid the individual. Fabian engaged in outside business activities, for compensation, without prior written notice to his member firm. (FINRA Case #)

Joseph Stephen Fabian: Barred (based upon his failure to respond to FINRA requests for information)

Cline engaged in private securities transactions without prior written notice to, or prior approval from, hismember firm. The findings stated that Cline engaged in outside business activities without prompt written notice to his firm. Cline provided false information about his private securities transactions and outside business activities on firm compliance questionnaires. 

William Edward Cline: Barred

Campbell engaged in outside business activities, for compensation, and failed to notify his firm in writing. Campbell signed firm forms to indicate that he understood his firm’s policies on outside business activities and was not engaged in any such activity. 

Thomas Campbell: Fined $10,000; Suspended 18 months

While registered with member firms, Bonner engaged in outside business activities, for compensation, without prompt written notice to the firms. Bonner completed an Outside Activities Disclosure Form, which one firm required, and did not disclose his outside business activities. Also,  Bonner engaged in private securities transactions, for compensation, without prompt written notice to, and approval from, his member firms. Bonner borrowed $900,000 from firm customers when firm procedures prohibited such borrowing. 

Robert Michael Bonner: Barred

Xu engaged in outside business activities for compensation, outside the scope of his relationship with his member firm, and failed to provide prompt written notice of this compensation to his firm.

Yongsheng Xu: Fined $5,000; Suspended 30 business days

Workman engaged in outside business activities for compensation, outside the scope of his relationship with his member firm, and failed to provide prompt written notice to his firm. 

Bruce Dudley Workman: Fined $7,500; Suspended 10 business days

Shoff sold equity-indexed annuities for compensation outside the scope of his employment with a member firm without providing the firm prompt written notice of the business activity. 

Galen Mark Shoff: Fined $5,000; Suspended 3 months

Puig engaged in business activities outside the scope of his employment relationship with his member firm, without providing notice to his firm. 

Victor Manuel Puig: Fined $5,000; Suspended 20 business days

McFarlane sold equity indexed annuities, for compensation, outside the scope of his employment with his member firm and without providing the firm with prompt written notice of the outside business activity.

John Lloyd McFarlane: Fined $5,000; Suspended 4 months

Haas participated in outside business activities without providing his member firm with written notice of these activities. Haas falsified correspondence to cover up these activities and falsely certified to his firm he was not engaged in outside business activities. He failed to appear for a FINRA on-the-record interview. 

David Christian Haas: Barred

While Effron was registered with a member firm, he engaged in outside business activities and failed to provide prompt written notice by completing and submitting an Outside Business Activity Notification Form. 

Effron placed variable annuity transactions through his member firm for customers of a representative from another member firm without discussing the transactions with the customers, and after receiving the completed and signed applications, he submitted them to his firm for processing. Effron received commissions from the transactions and forwarded most of the commissions to the representative without advising his firm of the arrangement. 

Steven Effron: Fined $10,000; Suspended 4 months in all capacities

Patrick engaged in an outside business activity without prompt written notice to his member firm; conducted private securities transactions without prior written notice to, or prior written approval from, his member firms; and failed to respond to FINRA requests for information and documents. 

Richard Vincent Patrick: Barred

Lorne made unauthorized withdrawals totaling approximately $12,101 from an organization for which he was treasurer, and hid the withdrawals from the organization’s officers and submitted false financial reports to the organization. Lorne converted the funds for his own personal use, except for a small amount that was for legitimate expense reimbursement, but repaid the organization after he was confronted about the unauthorized withdrawals. He engaged in outside business activities and failed to provide prompt written notice to his member firm, and made misrepresentations to his firm regarding any outside business activity. 

Nathan James Lorne: Barred

Towne intentionally, and without authorization, converted $4,181.81 from a customer account to the account of a corporation he owned with the same name, and used the funds for personal expenditures. Towne engaged in outside business activities, for compensation, and failed to notify his member firm.  Towne failed to respond to FINRA requests for documents. 

Allerton Towne: Barred

Sucoff and Mason engaged in outside business activities, for compensation, without providing prompt written notice to their member firm.

Cary William Sucoff (Principal) and Lewis Mason: Fined $10,000 each; Suspended 15 business days

Rossi engaged in outside business activities, for compensation, and failed to give prompt written notice to his member firm. He failed to disclose material information on his Form U4 and failed to respond to FINRA requests for information.

Philip Donato Rossi: Barred

Pickle engaged in a private securities transaction and failed to give prior written notice to, or receive written approval from, his member firm. He also engaged in outside business activities, for compensation, without prompt written notice to his member firm. Pickle denied receipt of outside compensation when his member firms pecifically asked him. 

Phillip Alan Pickle: Fined $10,000; Suspended 9 months in all capacities

Ide engaged in an outside business activity, for compensation, without providing notice to his member firm. Ide provided inaccurate information and made misstatements to his firm relating to his undisclosed outside business activity on annual audit questionnaires and during a firm internal investigation.  

Mitsuhiro Ide: Fined $10,000; Suspended 6 months in all capacities

Hanson participated in outside business activities, for commissions and compensation, and failed to provide his firm with prompt written notice.  

Gary Allen Hanson: Suspended 9 months in all capacities

Albertson engaged in outside business activities, for compensation outside the scope of his relationship with his member firm, without providing prompt written notice to his member firm.  

John Wellington Albertson Jr.: Fined $5,000; Suspended 45 business days all capacities.

Ventresca engaged in outside business activities, for compensation, and failed to provide prompt written notice to his member firm on annual outside business activity forms or in any other written form. 

Lawrence Louis Herman Ventresca: Fined $10,000; Suspended 3 months

Steet engaged in outside business activities, for commissions, without providing prompt written notice to his member firm. Street was asked on a required firm compliance questionnaire whether he engaged in outside business activities and accepted commissions from sources other than his member firm, he incorrectly answered “no.” 

Kenneth Lenell Street: Fined $5,000; Suspended 6 months

Gomez failed to respond to FINRA requests for information, and engaged in outside business activities, for compensation, without providing prompt written notice to his member firm. 

Jorge Gomez Jr.: Barred

Russell loaned $150,830 to a firm customer, but her member firm had policies prohibiting this activity, and she neither had permission to loan the funds, nor did she make her firm aware of the loans to the customer. Also, Russell engaged in an outside business activity, for compensation, without providing verbal or prompt written notice to her firm. 

Yvonne Yuliene Russell: Fined $10,000; Suspended 30 business days in all capacities

Roberts borrowed $10,000 from a public customer without written approval in accordance with his firm’s written procedures, and engaged in an outside business activity with the expectation of compensation without prompt notice, written or otherwise, to his member firm. 

Daniel Joseph Roberts: Fined $10,000; Suspended 100 days in all capacities

Nord loaned to or borrowed from firm customers amounts ranging from $4,000 to $500,000, sometimes on more than one occasion, without his member firm’s written approval in accordance with the firm’s written procedures. Nord engaged in an outside business activity, for compensation, without prompt notice, written or otherwise, to his member firm, and failed to respond to a FINRA request to appear for an on-the-record interview. 

Brian Robert Nord: Barred

Mooriston engaged in outside business activities without her member firm’s prior written notice; andfailed to comply with FINRA requests for information and documents, and failed to appear for a FINRA on-the-record interview. 

Tamra Renee Morriston: Barred

Lochtefeld engaged in outside business activities, for compensation, and failed to give prompt written notice to his member firm. 

Vernon A. Lochtefeld: Fined $5,000; Suspended 30 days in all capacities

Hunt failed to disclose an outside business activity to his member firm; and failed to respond to FINRA requests for information. 

Jeffery David Hunt: Barred

Gossett made unsuitable investment recommendations to public customers, in that they were inconsistent with each customer’s financial situation, investment objective, circumstances and needs. In verbal and written communications with customers, Gossett made misleading or unwarranted claims about his investment strategy, particularly regarding investment risks, and made predictions or projections of the future performance of the strategy without providing a sound basis for evaluating his assertions. Gossett prepared and distributed to prospective customers sales literature about his investment strategy that failed to include risk disclosures and provided misleading information about past performance; provided incomplete and/or misleading information to customers about the performance of their investments and/or the account balance; and prepared an account statement for a customer in which he did not report all of the customer’s account holdings and thus reported an account balance that was greater than actual. 

Gossett exercised discretion in firm customer accounts without the customers’ prior written authorization and his member firm’s prior written acceptance. Gossett enlisted the service of a non-registered individual to solicit investors to open accounts with Gossett, promote Gossett’s investment strategy, assist customers with completing application forms and serve as Gossett’s primary point of contact. As compensation for the services, Gossett agreed to pay the individual half of the commissions he generated from trades in the customers’ accounts. 

In addition, Gossett opened a securities brokerage account with another FINRA member without providing written notice to his member firm and without advising the other firm of his association with a member firm; failed to disclose the account to his member firm after he opened the account; and failed to provide written notice to his member firm that he was engaged in an outside business activity. In response to a request for information, Gossett knowingly provided false and misleading information. 

James Stanley Gossett: Barred

Fiszer engaged in outside business activities, for compensation, and failed to give prompt written notice to his member firm. 

Eric Andy Fiszer: No fine in light of financial status; Suspended 30 days in all capacities

Tipton engaged in an outside business activity, for compensation, without prompt written notice to his member firm. Also, he loaned $600 to a public customer in breach of his firm’s procedures that prohibited borrowing and lending transactions with customers. Tipton failed to appear for a FINRA on-the-record interview. 

Jeffrey Eugene Tipton: Barred

Stebbins engaged in his member firm’s investment banking and securities business in capacities requiring registration as a representative and principal, but he was not registered in those capacities. Stebbins engaged in an outside business activity, for compensation, without prior written notice to his member firm. Stebbins had a beneficial interest in securities accounts maintained at other member firms and failed to disclose to the carrying broker-dealers that he was associated with FINRAmembers, and also failed to give his member firms written notification that he had a financial interest in securities accounts with the carrying broker-dealers. 

Stebbins knowingly provided false and/or misleading information in response to FINRA requests for information; and failed to respond to FINRA requests to appear for an on-the-record interview and to provide information and documents. 

Jeffrey Michael Stebbins: Barred

Paul engaged in outside business activities without prompt written notice to his member firm.

David Randall Paul: Fined $5,000; Suspended 30 days in all capacities

Kutsche engaged in outside business activities without prompt written notice to his member firm, and failed to respond to FINRA requests for information and to appear for an on-the-record interview.

John Keith Kutsche: Barred

Fishman willfully failed to disclose material information on his Form U4 and his member firm’s annual compliance forms. Also, he engaged in an outside business activity, for compensation, and failed to provide prompt written notice to his member firm.

Avidan Danny Fishman (Principal): Fined $2,500; Suspended 6 months in all capacities (willful failure to disclose) and 1 month in all capacities (outside business activity)

Aulwes engaged in outside business activity, for compensation, without prompt written notice to his member firm. Aulwes participated in private securities transactions without prior written notice to, and written approval or acknowledgement from, his member firm. 

Noah James Aulwes: Fined $10,000; Suspended 1 year in all capacities