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.

David Vankuren Tolley
AWC/2010022046801

Tolley borrowed $5,000 from an investor and customer of his member firm contrary to his firm’s compliance manual that generally prohibited representatives from borrowing money from a customer unless the borrowing was made pursuant to an exception to the rule and written approval had been granted by the firm’s compliance officer; Tolley failed to obtain permission. 

David Vankuren Tolley: Fined $7,500; Suspended 4 months

Tags: Borrowing  

Dennis Flanagan Jr.(Principal)
OS/2008011666201

Flanagan willfully failed to timely disclose material information on his Form U$ and failed to respond to FINRA requests for documents and information. 

Dennis Flanagan Jr.(Principal): Fined $25,000; Suspended 2 years in all capacities

Efan Eric Graddy
AWC/2010024507502

Graddy failed to amend his Form U4 to disclose a material fact and failed to timely respond to FINRA requests for testimony.

Efan Eric Graddy: Fined $5,000; Suspended 4 months in all capacities

Julie Ann Bekeleski
AWC/2010022513601

Bekeleski failed to timely amend her Form U4 with material information and failed to timely respond to FINRA requests for information.

Julie Ann Bekeleski: Fined $5,000; Suspended 7 months in all capacities

Michael Adam Lichtenstein
AWC/2009016157803

Lichtenstein solicited firm customers to invest in a private placement offering of securities and sent several customers a one-page document entitled “use of proceeds” for an entity that was not the offering’s issuer. The document had been prepared by Lichtenstein’s firm’s outside counsel and the firm provided the document to Lichtenstein for distribution to prospective investors. While some of the proceeds from the offering were ultimately used to purchase membership interests in the other entity, the offering was not for the other entity. Although Lichtenstein never owned any interest in his firm, he represented to a customer that he did have an ownership interest in the firm. 

Michael Adam Lichtenstein: Fiend $50,000; Suspended 24 months in all capacities

Tags: Private Placement  

MML Investors Services, LLC
AWC/2010020873501

MML Investors Services failed to timely file Forms U5 and amendments to Forms U4 and U5. 

MML Investors Services, LLC: Censured; Fined $300,000; Required to * review its supervisory systems and WSPs for compliance with its reporting obligations concerning the timely filing of Uniform Application for Securities Industry Registration or Transfer (Form U4) disclosure amendments and the timely filing of Uniform Termination Notices for Securities Industry Registration (Forms U5) and Form U5 amendments, * certify in writing to FINRA within 90 days of the issuance of the AWC that the firm currently has in place systems and procedures reasonably designed to achieve compliance with its reporting obligations under FINRA’s By-Laws, Article V, 11 January 2012 Sections 2(c), 3(a) and 3(b) with respect to the timely filing of required Forms U4 and U5, and amendments thereto; * within 15 days following the end of each quarter in calendar year 2012, the firm will submit a report to FINRA detailing any Form U5 filings or disclosure amendments to Forms U4 and U5 that were not timely filed with FINRA that quarter, and an officer of the firm will certify in writing to FINRA that the submitted report is accurate.

Tags: WSPs    

Robert Allen Pierce (Principal)
AWC/2009020245901

Pierce effected, or caused to be effected, securities transactions in customers’ accounts without their knowledge or consent, and in the absence of written or oral authorization to exercise discretion in those accounts. The transactions included purchases totaling approximately$10,328.37 and sales totaling approximately $54,733.15.

Robert Allen Pierce (Principal): No Fined in light of financial status; Suspended 4 months in all capacities

Ronald Moschetta (Principal)
AWC/2009018736501

Moschetta failed to disclose information on his Forms U4 that a state regulatory agency had entered an order against him in connection with an investment-related activity, and inaccurately responded to a question in Form U4 filings he submitted.

Ronald Moschetta (Principal): Fined $5,000; Suspended 30 days in all capacities

Rosalie Hodes Fields
AWC/2008015984201

She inaccurately reported to her member firm’s Office of General Counsel that a complaint against her had been withdrawn when it had been settled.  Fields submitted a Form U4 amendment to the firm that contained this inaccurate statement. 

Rosalie Hodes Fields: Fined $5000; Suspended 1 month in all capacities