Charry
failed to enforce his firm’s WSPs
regarding the handling of PPM,
subscription documents and investor funds for private placement
offerings his firm sold,
and he failed to effectively supervise the associated persons’
handling of such documents.
Charry did not prevent the associated persons from sending
subscription documents
directly to the private placement issuer, which precluded the firm
from conducting
adequate oversight or review of the transactions and from
retaining transaction-related
documents.
Charry failed to review private placement
transactions for
suitability and typically did not review or approve private
placement transactions effected
by the associated persons he supervised. He failed to
enforce the firm’s WSPs and failed to effectively supervise the
associated persons’ use
of non-firm email for securities business. Charry was aware of,
and did not prevent, the
associated persons from using personal email accounts to conduct
securities business.
The use of non-firm email accounts prevented the firm’s compliance
staff from reviewing
the associated persons’ customer communications, and the firm was
unable to retain
securities-related communications.
When Charry resigned
from the firm, he left the keys for the office and the key for
filing cabinets containing
firm customers’ non-public personal information with the office’s
landlord, who was not
affiliated with Charry’s firm. This failed to safeguard the
customers’ non-public personal
information and, in addition, made such information available to a
non-affiliated third
party without providing customers with the appropriate notice,
thereby causing the firm to
violate Rules 10 and 30 of SEC Regulation S-P.
Hernan Charry Jr. aka Herman Charry (Principal): Fined $10,000; Suspended 20 business days