Enforcement Actions
Financial Industry Regulatory Authority (FINRA)
CASES OF NOTE
2009
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.
Paul Joseph Benz
AWC/2006006518901
Benz manipulated the thinly traded common stock of an oil and gas exploration company by making trades in a customer’s account and making a market in the company’s common stock. Benz opened an account at his member firm for a corporate customer, and that Benz’ close relative, who was the controlling manager of a hedge fund with a significant position in the company, controlled the account. Benz effected trades in the company’s stock in the account to create activity and raise the price of the stock for the purpose of inducing others to purchase it. Benz traded at the end of the month, which inflated the month-end value of the hedge fund, and in turn increased its monthly management fees, which benefited Benz’ relative. Benz earned about $87,750 in trading commissions. Benz failed to respond to FINRA requests for documents and information, and to appear for an on-the-record interview. 
Paul Joseph Benz: Barred
Bill Singer's Comment
No, I don't need smelling salts but I am a bit dizzy.  Two cases in a row--Bellia immediately below and this one -- and they are both above reproach.  Concise. Nicely written. Gives guidance. Punishment fits the violation.  Hmmm...maybe they're trying to get on my good side?  Okay, give these folks a raise and promotion.
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