Enforcement Actions
Financial Industry Regulatory Authority (FINRA)
CASES OF NOTE
2012
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.
January 2012
Eytan Nisim Naftali
AWC/2010024522201/January 2012
Naftali  improperly borrowed a total of $20,000 from two elderly customers at his member firm. The loans were interest-free and did not have any repayment terms. The firmís procedures generally prohibited borrowing money from customers, except in limited circumstances, and those procedures required registered representatives to obtain the firmís written approval before entering into such loans. Naftali did not seek or obtain the firmís approval before entering into the loans. Naftali has since repaid one of the customers in full, but still owes the other customer $8,500. 
Eytan Nisim Naftali : Fined $2,500; Suspended 45 days; Ordered to pay $8,500 plus interest in restitution to customer. FINRA took into account Naftali's suspension by his firm.
Tags:  Elderly    Borrowing     |    In: Cases of Note : FINRA
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