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.

Kevin Michael Browne (Principal)
OS/2007011348301

Browne knowingly or recklessly employed devices, schemes or artifices to defraud; made untrue statements of a material fact or omitted to state a material fact necessary in order to make the statements made, in light of the circumstances under which they were made, not misleading, concerning a Collateralized Mortgage Obligation (CMO) Program and CMO investments; or engaged in acts, practices or courses of business which operated, or would operate, as a fraud or deceit upon his customers. Browne effected transactions in, or induced the purchase or sale of, securities by means of any manipulative, deceptive or other fraudulent device or contrivance. Browne intentionally or recklessly made misrepresentations of material facts and omitted to disclose material facts to customers in connection with their CMO investments. Browne recommended risky and illiquid CMO positions to customers without investigating and understanding the products; Browne lacked reasonable grounds to believe that CMOs were suitable for his customers based on their disclosed investment experience, investment objectives, financial situation and needs. Browne exercised discretionary authority in customer accounts without his customers’ prior written authorization and his firm’s prior written acceptance of the accounts as discretionary.

Kevin Michael Browne (Principal): In light of Browne's financial status no fine was imposed; Suspended 1 year in all capacities