Statutory Disqualification Index
SEC and FINRA
CASES OF NOTE
SD02010
NOTE: Stipulations of Fact and Consent to Penalty (SFC); 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 & to the entry of findings. Additionally, for AWCs, if FINRA has reason to believe a violation has occurred and the member or associated person does not dispute the violation, FINRA may prepare and request that the member or associated person execute a letter accepting a finding of violation, consenting to the imposition of sanctions, and agreeing to waive such member's or associated person's right to a hearing before a hearing panel, and any right of appeal to the National Adjudicatory Council, the SEC, and the courts, or to otherwise challenge the validity of the letter, if the letter is accepted. The letter shall describe the act or practice engaged in or omitted, the rule, regulation, or statutory provision violated, and the sanction or sanctions to be imposed.

In the Matter of the Continued Association of X as an Associated Person with Sponsoring Firm 

MC-400:  January 2002 

Redacted Decision
SD Decision No. 02010

APPROVED without hearing upon the recommendation of the Department of Member Regulation in accordance with NASD Procedural Rule 9523

Filed Under: Felony, DUI, Approval w/o hearing
SD Event

2000 guilty plea for driving while intoxicated , a third degree felony (third DUI offense) resulting in $1,000 in court costs, 60 days in jail, community supervision (probation) for 6 years, suspension of driving privileges for 2 years, prohibited from operating a motor vehicle unless equipped with ignition interlock device for 48 months. Has occupational driverís license permitting work-related driving. Served jail term in work release during day (incarceration nights and weekends)

Sentence Expiration

Still on community supervision

Prior Industry Activity

X is a  non-registered associated person employed as a graphic artist at Firm since 1999.. 

Background
N/A
Sponsoring Firm

Firm an NASD member in 1998. Direct access broker specializing in electronic trading and brokerage services. 2 OSJs, no branches. 57 principals, 124 RRs, and 266 employees.  AWC for equity trader registration violations $16,000 fine/Censure/disgorge $4,000 commissions.  LOC: CE requirements, municipal securities registration, recordkeeping, trade reporting, and advertising.  Also member of NFA and ISE.

Proposed Activity

X to continue employment in marketing department as a graphic artist responsible for developing graphics for website, print ads, and online ads.  No dealings with investing public nor supervision.

Proposed Supervisor

Manager of Marketing Dept. Series 4, 7, 53,63, and 24.  With Firm since 2000 and in industry since 1994.  No regulatory history.

Member Regulation Recommendation

Permitted

Considerations

Non-registered capacity with no public contact nor supervision.  Customer records are located on another floor.  Offense committed more than 2 years ago and X sought rehabilitation in outpatient treatment program and AA.  Community Supervisor states X is complying with his court-ordered supervision.  Proposed Supervisor not related by blood or marriage.

UNDERTAKINGS

1.         X will conduct business on behalf of the Sponsoring Firm only from the office where the Proposed Supervisor is physically located, at a desk nearthe Proposed Supervisor; 

2.         X will not have any direct dealings with the investing public

3.         X will not act in a supervisory capacity; 

4.         The Proposed Supervisor will review all of X's work before it goes into production; 

5.         The Proposed Supervisor will review X's incoming and outgoing written correspondence at the time that it is either received or sent; 

6.         All complaints pertaining to X, whether verbal or written, will immediately be referred to the Proposed Supervisor for review, and then to the Firm's Director of Compliance.  The Proposed Supervisor will prepare a memorandum to the file explaining the measures he took to investigate the merits of the complaint and the resolution of the matter.  Documents pertaining to these complaints should be kept segregated for ease of review; and

7.         For the duration of X's statutory disqualification, the Sponsoring Firm must obtain prior approval from Member Regulation if it wishes to change X's responsible supervisor from the Proposed Supervisor to another person.set forth above.

Citations
 
Sections
Enforcement Actions
 
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