Enforcement Actions
Financial Industry Regulatory Authority (FINRA)
CASES OF NOTE
2010
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.
December 2010
Rodney Brian Moss
AWC/2009016709015/December 2010

Moss participated in the sale of $50,000 worth of Universal Lease Programs (ULPs) without prior written notice about the sale to his member firm and his firmís prior written approval.  He earned approximately $6,000 in commissions from his sale of the ULP.

Moss participated in sales of

  • payphone programs totaling $65,000,
  • an automatic teller machine (ATM) program totaling $48,000 with an additional $2,400 for surety bonds

to members of the public and failed to provide his firm with written notice about the sales and never obtained the firmís written approval.

Moss initialed and signed business activity statements in which he agreed that he was aware that his firm must be notified of all his business activities, even those that did not relate to the securities industry; these statements were incomplete and misleading because Moss failed to disclose his participation in the sales of the ULP, the payphone program and the ATM program.

Rodney Brian Moss: Fined $11,000 (includes commission disgorgement); Suspended 5 months
Tags:  ATM    payphones    Universal Lease Programs     |    In: Cases of Note : FINRA
Bill Singer's Comment
Yet another ULP action for 2010 -- certainly a growth industry for FINRA this year.
October 2010
Richard Totoy
2008015139801/October 2010
Totoy converted $1,000 from an elderly customer by using an automatic teller machine (ATM) card to withdraw the funds from the customerís account without her knowledge or consent. Totoy admitted that he made the withdrawals and later returned the funds to the bank. Totoy failed to respond to FINRA requests for information and to appear for a FINRA on-the-record interview.
Richard Totoy: Barred
Tags:  ATM    Elderly     |    In: Cases of Note : FINRA
Bill Singer's Comment
What a class act! Congrats to FINRA for barring this lowlife
September 2010
Steven Emery Floyd
2009016586601/September 2010

Floyd requested and received temporary automated teller machine (ATM) cards in customersí names and used the cards to withdraw a total of more than $15,000 from the customersí accounts without their knowledge or consent, and used the funds for his own personal use and benefit.

Floyd failed to respond to FINRA requests for documents and information.

Steven Emery Floyd : Barred
Tags:  ATM        Credit Cards     |    In: Cases of Note : FINRA
Bill Singer's Comment
FINRA did not seek restitution because Floydís member firm reimbursed the customers.
August 2010
Dustin E. Polage
OS/2008014784001/August 2010
Without bank customersí knowledge or authorization, Polage used their personal bank account information to generate and activate ATM cards linked to their savings accounts and withdrew funds totaling approximately $36,102 from the accounts. Polage has not returned any of the funds to the bank customers or reimbursed the bank after it reimbursed the funds to the customers. Polage failed to respond to FINRA requests for information.
Dustin E. Polage : Barred
Tags:  Bank    ATM     |    In: Cases of Note : FINRA
Quinton Jeffries-Hernandez
2008015002801/August 2010
Jeffries-Hernandez caused referral bonuses to be credited to customer accounts for which the customers were not entitled. Jeffries-Hernandez issued ATM cards for the accounts and used the ATM cards to withdraw the funds for his personal use, without the customersí or the bankís knowledge or authorization. Jeffries-Hernandez failed to respond to FINRA requests for information and failed to appear for an on-the-record interview.
Quinton Jeffries-Hernandez : Barred
Tags:  ATM     |    In: Cases of Note : FINRA
July 2010
Jason K. Bronsky
AWC/2010021551101/July 2010
Bronsky used the bank ID and computer of the assistant branch manager at the bank where he was employed to create an automatic teller machine (ATM) card and personal identification number (PIN) for a bank customer without the customerís knowledge. Bronsky used the ATM card and PIN to withdraw a total of $2,511 from the customerís savings account for his own use and benefit.
Jason K. Bronsky : Barred
Tags:  ATM    Bank     |    In: Cases of Note : FINRA
June 2010
Joel Barrett
2008014006701/June 2010

Without a bank customerís knowledge or authorization, Barrett

  • signed the customerís name on a check withdrawal form requesting a $25,000 check from the customerís account made payable to Barrettís friend, and the funds were later deposited into the friendís checking account; and
  • activated and linked an ATM card to the bank customerís savings account and used the card to withdraw $3,500 from the account for his own personal use and benefit.

Barrett failed to respond to FINRA requests for information and to appear and testify at an on-the-record interview.

Joel Barrett : Barred
Tags:  ATM    Check    Bank     |    In: Cases of Note : FINRA
February 2010
Robin Emily Katz
AWC/2009019057101/February 2010
While employed as a personal banker at her member firmís affiliate bank, Katz improperly obtained an automatic teller machine (ATM) card for a customerís account without authorization and misappropriated approximately $100,000 from the customerís account.
Robin Emily Katz : Barred
Tags:  ATM    Bank     |    In: Cases of Note : FINRA
Bill Singer's Comment
"Improperly obtained an automatic teller machine (ATM) card for a customer's account without authorization . . ." Umm, do you folks at FINRA think that you might, you now, perhaps, uhh, just put a bit more punch into the charge?  I mean, you know, I see where you phrase it that Katz only "misappropriated approximately $100,000 . . ." It's not like she intentionally defrauded the bank or stole any money . . . right? 

Geez.  Improperly obtained. Misappropriated. How nice.
January 2010
Shaniqua N.White
OS/2008015003001/January 2010
White converted $1,800 from a customer by creating a temporary ATM card in the customerís name without the customerís permission or consent, and used the unauthorized ATM card to withdraw $1,800 from the customerís bank account for her own use and benefit. White failed to respond to FINRA requests for information and documents and to appear for a FINRA on-the-record interview.
Shaniqua N.White: Barred
Tags:  ATM     |    In: Cases of Note : FINRA
Shellie Lin Newton
AWC/2008014143701/January 2010

Registered Supervisor Newton used her position as an operations manager to misappropriate more than $10,000 from her member firm. Newton

  • entered false deposit amounts into her brokerage account at her firm, thereby creating artificial balances in the account,
  • transferred money from the brokerage account to her personal checking account, and
  • used the funds for personal purposes.

In an attempt to conceal the false deposits, Newton deposited checks into her brokerage account and made an online transfer knowing at the time that her checking account lacked funds to cover the checks, and used an ATM to intentionally enter an amount to be deposited that was greater than the check included with the deposit. By knowingly entering fictitious deposit amounts into her brokerage account at her firm, Newton created artificial balances in it and caused her firmís books and records to be false.

Shellie Lin Newton: Barred
Tags:  Operations Manager    Check    ATM     |    In: Cases of Note : FINRA
Bill Singer's Comment
I'm not understanding from FINRA's published decision how Newton "used her position as an operatons manager to misappropriate" the funds. It's clear that she made false deposits and transfers to hide her tracks, but I'm not sure that you need to be an Ops Mgr to accomplish that -- fact is, this nonsense goes on everyday.
Enforcement Actions
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