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.
February 2010
Aurora Capital LLC
AWC/2008011646701/February 2010
Without notifying FINRA, the Firm participated in firm commitment offerings while operating pursuant to a membership agreement that allowed it to engage in underwriting or selling group participant of public offerings of corporate securities, other than mutual funds, on a best efforts basis only, and that required prompt notification if the firm engaged in any underwriting or selling group activity of firm commitment offerings. As a result of the firmís participation in the firm commitment offerings, the firm conducted a securities business while failing to maintain its minimum net capital requirements.
Aurora Capital LLC : Censured; Fined $10,000
Bill Singer's Comment
If you are a FINRA member, then you should have a Membership Agreement that was issued to your firm when it first gained membership (and which was amended from time to time as it sought to expand into areas not approved in the initial agreement).  Unfortunately, with the comings and goings of firm staff and the games that memory often plays, the terms by which your firm is bound may vary significantly from what you think they are or what someone swears to you is the case.

As Wall Street hopefully heals, there will likely be increased IPO activity.  Before you sign-off on any participation by your firm, make sure that your FINRA Membership Agreement permits the contemplated level of activity.
January 2010
Jesup & Lamont Securities Corp.
OS/2007007255603/January 2010
Despite its addition of a business activity that required a higher minimum net capital requirement under SEC Rule 15c3-1, the Firm failed to file an application with FINRA for approval of a material change in its business operations. On a single date, the firm conducted a securities business while it maintained insufficient net capital, in that the firm failed to take an open contractual commitment charge for its participation in a firm commitment underwriting.
Jesup & Lamont Securities Corp.: Censured; Fined $17,500
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