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.
September 2010
Stephen N. Richards
AWC/2009016955001/September 2010
Richards made a series of changes to the account of a deceased customer, including changing the account address to that of his member firm, the name on the account, and an instruction on the account in order to allow redemptions to be wired to his personal account. Richards effected mutual fund redemptions from the account and made corresponding wire transactions to his personal account totaling $38,194.38. Richards used his own login ID and those of his colleagues, without their knowledge or permission, to process these transactions.
Stephen N. Richards : Barred
Tags:  Deceased    Mutual Fund         |    In: Cases of Note : FINRA
February 2010
Rogelio A. Villa Jr.
AWC/2009019029201/February 2010
Villa obtained a deceased customerís credit card number during the course of assisting the customerís widow with her banking needs and, without authorization, charged approximately $3,800 to the customerís credit card account. Pretending to be the deceased customer, Villa contacted the credit cardís customer service and requested that the address on the credit card be changed to his home address. Villa added himself as an authorized user on the credit card and requested that a new card be sent to his home address.
Rogelio A. Villa Jr. : Barred
Tags:  Deceased    Impersonation     |    In: Cases of Note : FINRA
Bill Singer's Comment
I'm sorry but is this guy a moron or what?  He steals the credit card number from a dead customer, changes the address of record from the deceased's to his own home, and then adds himself as an authorized user -- and, seriously, what is the brilliant gameplan here?  No one is going to eventually discover that some dead customer's card is still in use? 

Not to be too flip, but when Villa impersonated the deceased customer on the telephone, did he simply dial the credit card company's phone number and hold his breath? You know, if you were to ask him why he called and said nothing, would his answer be "Well, I was impersonating a dead guy so I didn't say anything because since the customer was dead I didn't want to give away the fact that I was alive."
January 2010
Michael Gerald Delano III
AWC/2008013543001/January 2010
Delano was given the power of attorney over a deceased friendís estate by the deceasedís brother and was requested to handle the $50,000 in life insurance proceeds. Delano deposited the funds into his personal bank account and used the majority of the funds for his personal expenses without the brotherís consent. Delano represented to the brother that he had invested the life insurance proceeds into an annuity on the brotherís behalf.
Michael Gerald Delano III: Barred
Tags:  Power of Attorney    Deceased    Estate         |    In: Cases of Note : FINRA
Bill Singer's Comment
Talk about inviting bad Karma.  Wow -- ripping off the dead and then lying about it. 
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