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.
Steven Laurence Dorsey (Principal) AWC/2005000346104
As his member firm’s national sales director, Dorsey was responsible for reviewing daily trade blotters and information received from the firm’s compliance department. Despite being made aware of “red flags” indicating that unsuitable and excessive trading was occurring in customers’ accounts, Dorsey failed to take reasonable supervisory steps to respond to these “red flags” to prevent the unsuitable and excessive trading. Dorsey continued to maintain his FINRA securities registrations through his member firm for more than two years, although he did not actively engage in the firm’s securities business.
Steven Laurence Dorsey (Principal): Fined $25,000; Suspended 1 year in Principal Capacity only; Required to requalify by exam before acting in any principal capacity.