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.

Carol Anne Heynen
AWC/2006005116301

At the end of the trading day, Heynen entered fictitious sell transactions for the total amount of her long positions. The next morning her back office realized that the transactions did not match those reported with the Street and, in response, Heynen cancelled the transactions.

Heynen entered the fictitious sell transactions into her member firm’s Phase 3 order entry system, which is a back-office service provider and allows users to book transactions into the firm’s books and records without actually executing the claimed transactions. Heynen entered the fictitious sell transactions and maintained long positions to circumvent the firm’s trading account limits per security and total trading limit for her proprietary trading account. 

As a result of entering the fictitious sell transactions, Heynen concealed a $76,810 unrealized trading loss from her firm. Heynen caused her firm’s books and records to reflect false and misleading information regarding securities transactions in her account and, by entering the fictitious sell transactions at prices that concealed her unrealized trading losses, she engaged in unethical business conduct. 

Carol Anne Heynen: Fined $10,000 (FINRA advises that this number was arrived in following consideration of Heynen's financial status); Suspended 9 months