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.
June 2010
Juan Carlos Montanez-Gonzalez
AWC/2008016449501/June 2010
Montanez-Gonzalez borrowed $335,000 from firm customers, in contravention of his firmís written procedures, and then used the money to pay back another customer and to cover losses in other customersí accounts. Montanez-Gonzalez made material misrepresentations to customers concerning the features and guarantees of variable annuities, and misrepresented that the variable annuities had no surrender charges and that the interest and principal were guaranteed. Montanez-Gonzalez failed to respond to FINRA requests for information.
Juan Carlos Montanez-Gonzalez : Barred
Tags:  Borrowed         |    In: Cases of Note : FINRA
Bill Singer's Comment
Just wondering whether FINRA also determined that this broker engaged in an undisclosed settelement with his clients. That violation doesn't seem to have been charged.
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