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.

Edward Francis Stetz Jr. (Principal)
AWC/2009018333301

Stetz borrowed a total of approximately $27,600 from customers at his member firm, and the loans were unsecured and their terms were not memorialized in writing. When the loans occurred, the firm’s written policies generally prohibited representatives from borrowing money from customers, but certain exceptions existed that did not apply to Stetz’ borrowing from the customers. Stetz did not obtain the firm’s approval to borrow money from any of the customers, and he did not at any time disclose to the firm that he had borrowed money from them, and the borrowing arrangements did not otherwise meet the conditions set forth in NASD Rule 2370(a)(2). Stetz failed to testify on the record for FINRA’s investigation.

Edward Francis Stetz Jr. (Principal): Barred

Tags: Borrowing