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.
Ronald John Garabed Sr.
AWC/2010024175501
Garabed
borrowed $15,000 from his customer at his firm contrary to
his firm’s procedures,
which did not permit loans between registered representatives and
their customers
under any circumstances. Garabed
agreed to repay the
customer the principal loan amount plus an additional $5,000, he
ultimately repaid a total
of approximately $15,200. Garabed
denied on a compliance
questionnaire that he had ever solicited or accepted a loan from a
client.
Garabed willfully failed to update his Form U4
to disclose material
information.
Ronald John Garabed Sr.: Fined $10,000; Suspended 6 months