Enforcement Actions
Financial Industry Regulatory Authority (FINRA)
CASES OF NOTE
2012
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.
January 2012 - View all for this month
Bruce Benjamin Katz
OS/2009018906501
OS/2009018906501
Katz borrowed a total
of $82,000 from a customer without obtaining his member firm’s
prior written approval.
The findings stated that Katz assured the customer that he would
pay back her money.
Katz has not repaid the principal or any interest on the loans.
When Katz borrowed the
money, the customer was 75 years old and retired. At the
time Katz borrowed the money, his firm’s WSPs did not allow the
borrowing and lending
of money between registered persons and firm customers unless the
customer was the
registered person’s relative. Katz did not request or obtain the
firm’s permission to borrow
money from the customer and was not related to the customer. Katz
was aware of the
firm’s procedures and certified that he had received and read the
firm’s written policies
and procedures regarding financial arrangements with clients. Katz
did not disclose to
his firm that he had obtained loans from the customer.Since the firm’s
procedures did not permit borrowing, Katz could not borrow money
from the customer in
compliance with NASD Rule 2370, and the loans were not in
conformance with conditions
set forth in NASD Rule 2370(a)(2)(A)-(E) for permissible loans.
Bruce Benjamin Katz: No Fine in light of financial status; Suspended 18 months
Tags: Borrowing
Enforcement Actions
Search in Cases of Note : FINRA
Months
Cases of Note : FINRA Archive
Tags
- AML
- Annual Compliance Meeting
- Borrowing
- Changes Of Address
- Checks
- Commissions
- Confidential Customer Information
- Due Diligence
- Elderly
- Electronic Communications
- Electronic Storage
- Embezzled
- Installment Plan Contracts
- Internet
- Life Settlement Contracts
- LOA
- Membership Agreement
- Money Laundering
- Mortgage
- OSJ
- Ponzi
- Private Placement
- Referral Fees
- Supervision
- Testing
- Unregistered Person
- Unregistered RRs
- Unregistered Securities
- Variable Annuity
- WSPs