Condos and Roberts had knowledge that a sales assistant and possibly others replaced customer email addresses with the sales assistant’s firm email address to facilitate the opening of online accounts and to lessen the amount of communications the customers received; therefore, trade confirmations were sent to the sales assistant rather than the customers, although the customers continued to receive their monthly account statements, prospectuses and 1099 federal tax forms by mail.
Roberts’ relative opened several accounts at his member firm; Roberts serviced those accounts but failed to disclose to the firm that the individual who owned the accounts was a relative. Had Roberts made such disclosure, the account numbers assigned to the accounts would contain a prefix identifying them as being employee-related.
Stephen George Condos: Censured; Fined $15,000; Suspended 3 weeks in all capacities
Chuck A. Roberts: Censured; Fined $40,000 and Suspended 4 weeks in all capacities