Enforcement Actions
Financial Industry Regulatory Authority (FINRA)
CASES OF NOTE
2011
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.
April 2011
Mission Securities Corporation and Craig Michael Biddick (Principal)
2006003738501/April 2011

The Securities and Exchange Commission (SEC) sustained the sanctions following appeal of a National Adjudicatory Council (NAC) decision. The sanctions were based on findings that the firm and Biddick converted and misused customer securities. The SEC affirmed the NACís findings that the firm and Biddick intentionally caused the transfer of securities from customersí accounts to the firmís account without any prior authorization from, or notification to, these customers. The findings also stated that the firm and Biddick then sold a portion of the converted shares and used some of the proceeds for the firmís operating expenses.

Mission Securities Corporation: Expelled

Craig Michael Biddick: Barred

The Firm and Biddick were ordered to pay $38,946.06, plus interest, in disgorgement to firm customers.

Tags:  Expulsion    NAC     |    In: Cases of Note : FINRA
Bill Singer's Comment

FINRA NAC Decision (Feb. 24,2010) affirming Hearing Panelís finding that respondents violated NASD Rules 2330 and 2110 by converting and misusing customer securities. Accordingly, the NAC agreed to (a) expel Mission; (b) bar Biddick in all capacities;33 (c) order that Mission and Biddick pay, jointly and severally, $38,946.06 in the amounts and to the customers identified on Exhibit A attached to this decision, plus interest at the rate established for the underpayment of income taxes in Section 6621(a) of the Internal Revenue Code, 26 U.S.C. ß 6621(a), from September 30, 2005, until paid; and (d) order that respondents pay, jointly and severally, hearing costs of $2,078.60.

See, SEC Decision (December 7, 2010)

January 2011
CMG Institutional Trading LLC and Shawn Derrick Baldwin (Principal)
2008012026601/January 2011

CMG Institutional Trading LLC was expelled from FINRA membership and Baldwin was barred from association with any FINRA member in any capacity. The National Adjudicatory Council (NAC) imposed the sanctions following appeal of an Office of Hearing Officers (OHO) decision. The sanctions were based on findings that the firm, acting through Baldwin, failed to respond to FINRA requests for information and documents.

CMG Institutional Trading LLC: Expelled

Shawn Derrick Baldwin: Barred

Tags:  Expulsion    NAC     |    In: Cases of Note : FINRA
Jesup & Lamont Securities Corp
2009020539501/January 2011
Jesup & Lamont Securities Corp was expelled from FINRA membership for failing to timely respond to FINRA requests for documents and information.
Jesup & Lamont Securities Corp : Expelled
Tags:  Expulsion     |    In: Cases of Note : FINRA
Bill Singer's Comment
See this FINRA Arbitration case involving a former employee's defamation case.  http://www.brokeandbroker.com/index.php?a=blog&id=560 
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