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.

Jerome Joseph Stellick
AWC/2008012196501

Stellick completed an online application to open a brokerage account for a customer at a FINRA member firm with which he was not associated and completed the application by obtaining the customer’s signature on a separate page and submitting it to the executing member firm.

Stellick effected options transactions in the customer’s account at the executing member firm, but in light of the customer’s stated risk tolerance, Stellick did not have reasonable grounds for believing that the transactions were either qualitatively or quantitatively suitable for the customer. Stellick exercised discretion with respect to the options transactions effected in the customer’s account and never received written authorization from the customer, nor did he receive the executing member firm’s written approval. Stellick never notified his member firm, either orally or in writing, about the account he opened for the customer, or about any transactions he effected in that account. Stellick never informed the executing member firm about his control over the customer’s account and his status as an associated person of his firm.

Stellick borrowed $326,000 from his customers in violation of the written procedures of the firms with which he was associated.

Jerome Joseph Stellick: Barred

Tags: Borrowing