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.

StockCross Financial Services, Inc.
AWC/2007009467901

StockCross failed to preserve all employee electronic communications, including personal email and instant messaging services. The Firms written procedures failed to provide for any reasonable follow-up and review to ensure that electronic communications were, in fact, being printed out and reviewed, and because it failed to adequately preserve employee electronic communications, it could not show that it was reviewing and approving them. The Firm failed to demonstrate that it was preserving or reviewing facsimile communications that branch office employees sent or received. The Firm failed to make and preserve books and records related to customer accounts, and failed to maintain a record of the individual at a branch office who could explain the types of records maintained at that branch and the information contained in the records.

StockCross Financial Services, Inc.: Censured; Fined $60,000