Cronin participated in
private securities transactions without prior written notice to,
and prior written approval
from, his member firm. The findings stated that Cronin
sold
approximately $1,712,500 in
notes and debentures to investors, most of whom were his firm’s
customers at the time.
The notes and debentures, which were securities, were sold through
private placements.
Cronin received approximately $171,000 in commissions from these investments.
Cronin borrowed $10,000 from one of his
customers at his firm.
Cronin executed a promissory note stating that the loan was to be
paid in full by a certain
date, but failed to repay the loan according to the terms of the
note. Cronin eventually
repaid the loan with interest, but only after the customer filed
an action against him.
Cronin borrowed $5,000 from another
customer through a loan
that was not reduced to writing, and had no repayment terms;
Cronin repaid the loan.
Cronin did not disclose either of the loans to
his firm, which prohibited
loans from customers without prior firm approval.
William Alexis Cronin Jr.(Principal): Fined $181,000 (included $171,000 disgorgement of commissions); Suspended 2 years