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
PRIVATE SECURITIES TRANSACTIONS

VISIT WALL STREET'S LEADING ONLINE COMMUNITY
BrokeAndBroker.com

Sohn engaged in private securities transactions for compensation, and failed to provide his member firm with written or oral notice, and failed to obtain the firm’s approval to engage in such activity. Sohn failed to respond to FINRA requests for additional information and documentation. 

David M. Sohn: Barred

Inserra engaged in a private security transaction for compensation, and failed to provide his member firm with prior written notice of his role in this transaction and did not receive his firm’s written approval or acknowledgement of his role in this transaction. T

Randy Lee Inserra: Fined $100,000; Suspended 1 year

Friedman engaged in a private securities transaction without prior written notice to, or prior written approval from, his member firm, and received a referral fee as compensation. Friedman failed to timely and completely respond to a FINRA request for information. 

Jared Scott Friedman: Fined $15,000; Ordered to pay $500, plus interest, in restitution to a customer; Suspended 7 months in all capacities. 

Del Toro recommended and effected securities purchases to a customer that were unsuitable in light of the customer’s age and financial condition, and received $76,650 in commissions from the investment. Del Toro engaged in private securities transactions and failed to provide written notice to his member firms describing in detail the proposed transactions, his role therein and stating whether he had received, or would receive, selling compensation in connection with the transactions. Del Toro guaranteed the customer in writing against loss. 

Sergio M. Del Toro: Barred

Czerny participated in private securities transactions and failed to give prior written notice to his member firm of the proposed transactions and failed to receive his firm’s prior written approval to engage in the transactions. 

Michael Kipland Czerny: Fined $5,000;  FINRA did not impose disgorgement because Czerny had already paid the customer $150,000, which exceeds the amount of his financial gain; Suspended 1 year

Yamashiro engaged in private securities transactions and did not provide written notice to, or receive prior approval from, his member firm. 

Steven Boyle Yamashiro: Barred

Patel engaged in private securities transactions without prior written notice to, or prior written approval from, his member firm. Patel sent and received business-related emails from firm customers at his personal (non-firm) email address and then deleted the emails to avoid detection, without providing copies to the firm. 

Piyush Manubhai Patel: 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

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

Christopher Scott Airey: Fined $5,000; Suspended 3 months

Walker engaged in private securities transactions without prior written notice to his member firm. 

Stephen Wayne Walker: Barred

Thomas participated in private securities transactions and received compensation, but failed to provide prior written notification to, and receive prior written permission from, the firm to participate in the private securities transactions. Thomas failed to disclose these private securities transactions when he completed the firm’s annual compliance check list. Subsequently, Thomas provided an incomplete response to a FINRA request for information, and failed to respond to subsequent requests for information and documents. 

James Richard Thomas: Barred

Stadelmann received $1.5million from members of the public to purchase privately held companies’ stock but used the funds for other purposes. Stadelmann engaged in private securities transactions, for compensation, without his member firm’s prior permission. Also, Stadelmann borrowed $719,000 from firm customers in violation of FINRA rules. Stadelmann failed to respond to FINRA requests for documents and to appear for an on-the-record interview. 

Jeffrey Douglas Stadelmann: 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

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

Clay engaged in private securities transactions without written notice to, and approval or acknowledgement from, his member firm, and subsequently failed to respond fully to FINRA requests for information and failed to appear for an on-the-record interview. 

Raymond Edward Clay Sr.: Barred

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

Basham engaged in a private securities transaction outside the scope of his regular employment with his member firm without prior notification to the firm, and subsequently failed to respond to FINRA requests for him to appear for testimony. 

Edward Dee Basham: Barred

Gane participated in private securities transactions involving the sale of $3.8 million of convertible debentures issued by affiliated entities he controlled, without prior written notice to, or prior approval from, his member firms. Gane failed to appear for a FINRA on-the-record interview. 

Guy William Gane Jr.: Barred

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

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

Westlund purchased an interest security in a private offering without providing his member firm with written notification that he engaged in a private security transaction, and did not receive written approval from his member firm. 

Terry L. Westlund: Fined $10,000

Weaver and Will participated in private securities transactions, for compensation, in the sale of securities issued by another firm and did not provide prior written notice to, or receive prior approval from, their member firm. They incorrectly answered “no”when asked on required annual compliance questionnaires whether they had ever been paid or received a referral or finder’s fee from anyone for referring securities clients and/or business. 

Randy Brian Weaver: No fine in light of financial status; Suspended 9 months

Richard Lance Will: No fine in light of financial status; Suspended 8 months

Reysack engaged in private securities transactions outside the scope of his employment with his member firm and without providing prior written notice to, or receiving written approval or acknowledgment from, his member firm of his role in the transactions. Reysack had previously disclosed his involvement in a real estate venture to the firm and the firm approved this activity, but cautioned him not to solicit other individuals to invest in his real estate venture. 

Michael Dean Reysack: Fined $10,000; Suspended 6 months

Jones participated in a private securities transaction without prior notice to his member firm and failed to respond to FINRA requests for information and to appear for on-the-record interviews. 

Corbin Taylor Jones: Barred

Davis engaged in private securities transactions and failed to give prior written notice to, or receive prior written approval from, his member firm. 

Michael Vincent Davies: Fined $5,000; Suspended 6 months

Kavanaugh engaged in a private securities transaction without providing written notification to, and receiving written approval from, his member firm. 

Jason Patrick Kavanaugh: Fined $10,000

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

Jewett participated in private securities transactions, for compensation, without prior written notice to, or prior written approval from, his member firm. 

Jeff David Jewett: Fined $15,000 (includes $5,000 disgorgement); Suspended 18 months in all capacities

Bravo engaged in private securities transactions, for compensation, without prompt written notice to, or prior written approval from, his member firm.

Carlos Manuel Bravo: No fine in light of financial status; Suspended 20 business days in all capacities

Acting through Dash, Hallmark 

• filed a membership application that was incomplete or inaccurate so as to be misleading, and failed to correct the filing, and T
• failed to file a required application with FINRA for approval of change of ownership. 

Dash engaged in private securities transactions without providing prior written notice to his member firms or securing the firms’ written approval. 

Hallmark Investments, Inc.: Censured; Fined $15,000

Steven Gary Dash (Principal) No Fine in light of financial status; Suspended 2 months in all capacities

Meyer participated in a private securities transaction, for compensation, and failed to give prior written notice to, and receive written approval from, his member firm. The sanction was based on findings that Meyer failed to appear for a FINRA on-the-record interview. 

Glenn James Meyer: Barred

permission from, her member firm. (FINRA Case #2007009262301)

I guess Burse could have avoided this mess if she sent a simple, letter --- oh, no, please, let me write that for you:

Dear Member Firm:

I intend to participate in a fraudulent pyramid scheme in the form of investment contracts.  This letter should constitute my formal, prior written notice to you.  I am seeking your permission to further this fraud.

Sincerely,

Gabriela Frances Burse.

Robinson participated in private securities transactions without prior written notice to, and prior written approval from, his member firm; and failed to respond to FINRA requests for information. 

James Jay Robinson Jr.: Barred

Marshall engaged in a private securities transaction despite his member firm’s denial of authorization because the size of the investment would concentrate too much of a trust’s assets in a single investment. Marshall requested his firm to wire the transaction amount to an outside bank account where it was invested in the hedge fund through Marshall’s partner, knowing it was an unapproved private securities transaction. Marshall failed to provide an accurate and complete response to his firm when asked why the trust was moving funds out of the firm. 

John Gilbert Marshall Jr.: Fined $7,500; Suspended 6 months in all capacities

James participated in private securities transactions outside the regular course and scope of his employment relationship with his member firms and did not provide written notice to, or obtain written approval from, his firms prior to engaging in the offer and sale of limited partnerships.

Bobby Glenn James: Fined $20,000; Suspended 6 months in all capacities

Jacobs failed to properly supervise the private securities transactions of registered representatives at his member firm and failed to ensure that the transactions were recorded on the firm’s books and records. 

Alan Lawrence Jacobs: Fined $10,000; Suspended 30 business days in Principal capacities only.

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

Patrick Allen Bruns (Principal): No fine in light of financial status; Suspended 6 months

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