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.

Bentley-Lawrence Securities, Inc. and Richard Lawrence Coskey (Principal)
OS/2007011333401

Bentley-Lawrence and an unnamed registered representative settled a claim in connection with the representative’s mutual fund switching in a customer’s account.  Acting through Coskey, the Firm failed to

• report that settlement to FINRA;
• adequately and properly supervise the registered representative who engaged in mutual fund switching activities in customers’ account, which generated in excess of $178,000 in gross commissions, representing more than 50 percent of the firm’s mutual fund commission revenue for all registered representatives; and 
• adequately supervise to ensure the timely reporting of the settlement with the customer.

Bentley-Lawrence Securities, Inc.: Fined $50,000; Ordered to pay $117,623.68 restitution to customers, jointly and severally with Coskey.

Richard Lawrence Coskey: Fined $20,000; Ordered to pay $117,623.68 restitution to customers, jointly and severally with Bentley-Lawrence Securities; Suspended in Principal capacity only for 9 months.

Tags: Mutual Fund