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.
Self-Help Isn't Such A Good Idea:
Settling With Clients Without Your Firm's knowledge
by Bill Singer email@example.com
Michael James Burbage
Burbage converted $14,173.76 from the account of a public customer
without the customer's prior knowledge, authorization, or consent. He also
altered an internal firm document used to authorize the refund of money to
customer accounts by changing the dollar amount listed and approved by a
supervisor from $488.26 to $14,488.26 in an effort to reimburse the
Altman failed to disclose to his member firm payments he had made
totaling $229,243.83 to public customers to make up for the interest
customers lost when bonds defaulted.
Fined $5,000; Suspended 10
business days in all capacities.
Patrick Albert Quigley
Quigley converted $4,991 from a customer and settled a customer's
complaint by signing a promissory note in the amount of $43,432.30 without
informing the firm. It is unclear from the NASD's official
description as to whether the allegations pertain to two customers or one.
Richard Edward Casner (AWC/C06030016/Sept
Casner conducted unauthorized transactions and after the customer
complained to him, Casner attempted to settle the complaint by depositing
into the account the amount of the losses generated. He did not
disclose the complaint or the deposit to his firm, and he failed to
respond to NASD requests for information.
Stephen Ralph Kittelson (AWC/C04030029/July
Kittelson negotiated and entered into a settlement agreement with
a public customer without the knowledge or consent of his member
firm. Additionally, he engaged in unauthorized outside business
Fined $7,500; Suspended 60
days in all capacities
Rodney Wade Ratclff (AWC/C8B030009/June
Wade, without his firm's knowledge or
consent, negotiated and entered into a settlement agreement to pay $850 to a
public customer in order to resolve the customer's complaint about a
variable universal life product sales charge.
Fined $2,500; Suspended 10
business days all capacities
Carlos Miguel Garcia, III (AWC/C11030007/May
Garcia settled two
customer complaints totaling $26,000 without his BD's knowledge or approval.
Fined $10,000; Suspended 6
months in all capacities.
Gregory Emmett Bloom (AWC/C07030016/May
Bloom attempted to settle a customer complaint by making
payments totaling $6,000 to a public customer without informing his member
Fine waived in light of financial
status; Suspended 10 business
days in all capacities.
Wong paid a public customer
$18,431 from his personal checking account in order to settle a complaint
without his BD's knowledge or consent.
Fine waived in light of financial
status)Suspended from association with any NASD member in any
capacity for 20 business days.
Bruce William Haffner (OS/C8A020060/ April 2003) Haffner entered into a settlement agreement
with customers (wherein he agreed to compensate them for losses sustained)
without his firmís knowledge or consent. He also exercised discretion
without prior written authorization from the customers and without his
firmís prior written acceptance of the accounts as discretionary.
Finally, he failed to respond to requests for documents and information.
No fine per financial status, suspended 120 days in all capacities.
Edward Paul Galvan(C05020032/MARCH
Galvan executed an unauthorized transaction in a customer's account
for $5,393.75, resulting in a $3,950 loss upon liquidation. Galvan then
deposited $2,000 in the customer's account as partial reimbursement
without informing his member firm of said settlement.
Barred in all
capacities (sanction imposed for failure to respond)
Andrew Sirico (AWC/CLI020012/FEBRUARY 2003)
Registered Principal Sirico settled a public customer's written complaint
alleging sales practice violations by paying the customer $6,000 without
informing and obtaining authorization from his member firm.
$5,000 and suspended from association with any NASD member in any capacity
for 3 months.
RR Krishnaswamy gave $180 to a public customer to settle the
customer's complaint concerning commissions charged on a municipal bond
transaction, without the knowledge or consent of his member firm.
Fined $2,500 and suspended from association with any NASD member in any
capacity for 10 business days.