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.

2005
PRIVATE SECURITIES TRANSACTIONS

Maryniw purchased securities in the securities account of a stockbroker, who was registered at a different NASD firm than Maryniw --- and he did so without notifying 

• the other NASD firm that he was associated with an NASD firm, and 
• his own firm that he had a beneficial interest in the other broker’s securities account. 

Maryniw participated in a private securities transaction in that he failed and neglected to give written notice to his employing NASD firm, and failed to receive written approval from his firm, prior to engaging in such activity. 

Fined $5,000; Suspended 10 business days in all capacities

Haskell participated in private securities transactions without providing written or oral notification to, or receiving prior written approval from, his member firm. He settled a customer complaint and did not inform his member firm of the customer’s complaints, or of his agreement to personally help repay the notes to the customer. 

Fined $5,000; Suspended 6 months in all capacities; Requalify as General Securities Representative 

Dickey recommended and effected an investment strategy to public customers without having a reasonable basis for believing that the strategy was suitable for them given their financial needs and conditions. Dickey participated in private securities transactions without providing prior written notice and obtaining approval from his member firm. Dickey failed to respond to NASD requests for information. 

Barred; Fined $221,846.52 (disgorgement)

Chambers 

• induced public customers to submit $180,600 for investing purposes to his company or its agent and, without their knowledge, authorization or consent, he misused and/or converted the customers’ funds for his own use and benefit;
• recommended securities transactions to public customers without reasonable grounds to believe the investments were suitable for them in light of their financial situations, investment objectives, needs and the risks associated with the investments;
• engaged in private securities transactions and outside business activities without providing his member firm with prior written notice; and
• willfully failed to amend and to timely submit an amendment to his Form U4 to disclose material information. 

Barred; Ordered to pay $73,750 in restitution

Richmond engaged in private securities transactions without providing prior written notice to his member firm. Also, he failed to respond to NASD requests for information.

Barred

Galvan participated in private securities transactions without providing prior written notice to his member firm. He recommended securities transactions to a public customer without having a reasonable basis for believing the recommendations were suitable for the customer based on the customer’s financial situation and needs. He failed to respond to NASD requests for documents and information. 

Barred

Sabo engaged in private securities transactions without prior written notice to, or approval from, his member firm. 

Fined $10,000; Suspended 7 months in all capacities

Brueggemann participated in a private securities transaction without providing prior written notification to, and receiving prior written approval from, his member firm. 

Fined $7,400; Suspended 30 business days in all capacities

Brown participated in private securities transactions without providing prior written notice to his member firm. 

Fined $5,000; Suspended 15 business days in all capacities

Pompey participated in private securities transactions for compensation without providing written notice, and failed to receive written approval from his member firm prior to engaging in such activities. He failed to timely respond to NASD requests for information. 

Fined $7,500; Ordered to disgorge $79.447; Suspended 1 year in all capacities

Minerva participated in a private securities transaction without prior written notice to, or prior written approval from, his member firm; and he failed to respond to NASD requests for information. 

Barred

Milstein-Roth participated in private securities transactions without prior written notice to, or approval from, his member firm; and hefailed to respond to NASD requests for documents and information. 

Barred

Holland failed to ensure that his member firm included a $500,000 settlement agreement as a liability of the firm. He filed inaccurate FOCUS Reports with NASD that significantly overstated the firm’s net capital position and Holland failed to give NASD notice of the firm’s net capital deficiencies.  Holland participated in private securities transactions and failed to give his member firm prior notice of his transactions involving a stock, his role therein, and whether he might receive compensation in connection with the transactions.

Fined $25,000; Suspended 1 month in all capacities; Suspended 3 months in principal capacity

Aungst participated in private securities transactions, for compensation, failed to give written notice of his intention to engage in such activities to his member firm, and failed to receive written approval from his member firm prior to engaging in such activities. 

Fined $5,000; Suspended 1 year in all capacities.

Walker participated in private securities transactions without providing prior written notification to and receiving prior written approval from his member firm.

Fined $5,000; Suspended 6 months in all capacities; REquired to pay $30,353 plus interes in disgorgement as partial restitution to public customers.

Tiwari participated in private securities transactions without providing written notification to or obtaining written approval from his member firm. Tiwari engaged in outside business activities without providing prompt written notice to his member firm. In addition, he failed to respond to NASD requests to appear for an on-the-record interview. 

Barred

Ranhofer participated in a private securities transactions without providing prior written notice to or receive approval from his member firm.  Ranhofer engaged in outside business transactions and failed to give prompt notice of these activities to his member firm. Ranhofer failed to disclose material facts on his Form U4. (NASD Case #)

Barred

Mauss engaged in private securities transactions without providing prior written notice to his member firm. He engaged in outside business activities and received compensation in connection with such activity without providing prompt written notice to his member firm. Mauss failed to disclose material facts on his Form U4. 

Barred.

Johnson participated in private securities transactions without providing prior written notice to and receiving written permission from his member firm. He failed to respond to NASD requests for documents and information. 

Barred; Ordered to pay $42,702.83 plus interest in restitution to public customers

Roth participated in private securities transactions for which he expected to receive compensation, but did not receive prior written approval from his member firm. 

Fined $5,000; Suspended 3 months in all capacities

Kapsalis willfully failed to disclose material facts on his Form U4. Also, he effected securities transactions away from his member firm and failed to provide written notification to his member firm. 

Fined $10,000; Suspended 9 months in all capacities

Dennis participated in private securities transactions without providing prior written notice to his member firm. Dennis failed to respond to NASD requests for information. 

Barred

Atzen engaged in private securities transactions without providing prior notice to, and receiving approval from, his member firms.

Fined $88,342.51 (includes $78,342.51 disgorgement); Suspended 2 years in all capacities

The NAC found that  Abbondante 

1. participated in private securities transactions without providing prior written notice to, and receiving prior written approval from, his member firm; 
2. recklessly made material misrepresentations and omissions to public customers with respect to an investment fund; 
3. engaged in outside business activities without providing prompt written notice to his member firm; and 
4. knowingly facilitated another in providing false account statements to seven customers of his member firm.

Barred; Required to pay public customers $276,265 in restitution.

Von Kanel  

• participated in private securities transactions without providing prior written notice to his member firm;
• failed to disclose material information on his Form U4; and
• falsified documents in order to obtain public customer funds for investment in private securities transaction by creating loan requests without the knowledge or authority of the customers. 

Barred; Required to pay $28,000 plus interest in restitution to a public customer in the event of he seeks relief from any statutory disqualification.

Schweiger participated in private securities transactions without prior written notice or approval from his member firm. 

Barred

Graves 

• engaged in a private securities transaction with a public customer without providing written notice to his member firm;
• recommended an unsuitable security to a public customer;
• participated in outside business activities without prior written notice to his member firm; and
• received a loan from a public customer, which violates his member firm’s policy prohibiting the receipt or solicitation of loans from customers. 

Fined $7,500; Suspended 20 business days in all capacities

Drayton engaged private securities transactions without prior written notice to and approval from his member firm. 

Burgeson engaged in private securities transactions without notifying or receiving prior written approval by his member firm; and failed to respond to NASD requests for information. 

Barred

Schweiger participated in private securities transactions, and failed to provide prior written notice to, and receive prior written approval from, his member firm. 

Barred

Grieco effected a private securities transaction away from his member firm by facilitating an investment in a $50,000 promissory note for public customers. He failed to provide written notification to his member firm prior to effecting the transaction. 

Fined $7,500; Suspended 45 days

Gianni participated in private securities transactions without providing prior written notice to, and receiving prior written approval from, his member firm. 

Barred with right to reapply after 5 years

Ford participated in private securities transactions, received $42,253 in commissions, and failed to provide prior written notice to, and receive prior written approval from, his member firm. 

Fined $47,253; Suspended 2 years.

Clairmont engaged in private securities transactions without prior written notice to, or approval from, his member firm. 

Fined $5,000; Ordered to disgorge $25,000 received in connection with the securities sales, and pay partial restitution, plus interest; Suspended 3 months all capacities

Udy engaged in private securities transactions without providing prior written notice to his member firm. Further, he acted in a supervisory capacity at his member firm without registration as a general securities principal or investment company and variable contract products principal. 

Udy was Fined $12,500; Suspended 25 days in all capacities; Suspended 25 days in principal/supervisory capacity.

Pritchard participated in private securities transactions, received $53,073 in commission, and failed to provide prior written or oral notification to, and receive prior written approval from, her member firm. 

Pritchard was Fined $12,073 (includes $2,073 in disgorgement of commissions); Suspended 12 months in all capacities

Lombard engaged in private securities transactions totaling $256,000 without notifying his member firm of these transactions and his proposed role therein, and without receiving prior written approval from his member firm. 

Lombard was Fined $5,000 and Suspended for 6 months

Hiller engaged in  private securities transactions without prior notice to and approval from her member firm.

Hiller was NOT Fined because of financial statues; Suspended 3 months in all capacities.

Doba engaged in  private securities transactions without prior notice to and approval from his member firm. 

Doba NOT Fined in light of financial status; Suspended 4 months in all capacities.

Pappalardo effected  private securities transactions and failed to provide prior written notification to his member firm. He failed to respond to NASD requests to appear for an on-the record interview. 

Pappalardo was Barred.

Pagan participated in  private securities transactions without providing prior written notice to or prior written approval from, his member firms. 

Pagan was Fined $5,000; Ordered to Disgorge $11,017.05 in partial restitution to public customers, and Suspended 6 months in all capacities.

Antonino engaged in  private securities transactions and failed to give prior written notice of such transactions to his member firms with which he was associated. 

Antonino was Fined $7,500 and Suspended 3 months in all capacities.

Walthall engaged in outside business activities and  private securities transactions without prompt written notification to his member firm and his firm’s written approval to engage in the private securities transactions. 

Fined $35,000, suspended from 1 year in all capacities; and ordered to requalify by exam as a general securities representative (Series 7) before re-entering the securities industry. 

Regis was apparently a "limited" securities representative )not registered as a General Securities Representative) during a period in time when he was apparently selling payphone investment contracts to public customers. Such sales were outside his permissible range of products.  He engaged in  private securities transactions without prior written notice to his member firm describing the proposed transaction, his proposed role in the transaction, and stating whether he had received, or might receive, compensation.  Regis failed to respond to NASD requests to appear and give testimony. 

Barred

Ladah engaged in  private securities transaction soutside the normal scope of employment with his member firm and failed to give prior written notice to, and receive approval from, his member firm. Also, he engaged in outside business activities without providing prompt written notice to his member firm. 

Fined $5,000; suspended 2 years in all capacities; ordered to disgorge to customers $49,200 commissions plus interest

Kay engaged in  private securities transactionsand failed to provide prior written notice to his member firm.

Barred

Herndon engaged in  private securities transactions totaling $112,000 without notifying his member firm of the transactions and his role therein, and without receiving prior written approval from his member firm. 

Fined $5,000 and suspended 60 days in all capacities.