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Enforcement Actions
Financial Industry Regulatory Authority (FINRA)
U4, U5, RE-3, RULE 3070
[YEAR]
December 2009
Park Avenue Securities, LLC
AWC/2007010095201/December 2009
The Firm failed to timely file amendments to Uniform Applications for Securities Industry Registration or Transfer (Forms U4) or Uniform Termination Notices for Securities Industry Registration (Forms U5). The failed to enforce its written supervisory procedures relating to its direct mutual fund and 529 Plan business concerning switch letters and breakpoint worksheets compliance.
Park Avenue Securities, LLC: Censured; Fined $25,000
Mayra Jeanette Angulo and Mark Islas
2007011159501/December 2009
Angulo failed to amend her Form U4 to disclose material information and completed an annual firm compliance questionnaire in which she certified that the information on her Form U4 was current and accurate.

Angulo and Islas failed to respond to FINRA requests for information.

Mayra Jeanette Angulo: Barred
Mark Islas: Barred
Michael Glenn Buhrmester nka Michael Christopher Ryan
2007010189201/December 2009
 Associated Person Buhrmester failed to disclose material information on his Form U4.
Michael Glenn Buhrmester nka Michael Christopher Ryan: Fined $5,000; Suspended 30 business days all capacities.
Robin Lynn McKenny
2007009454501/December 2009
Associated Person McKenny willfully failed to disclose material information on a firm employment application.
Robin Lynn McKenny: Fined $5,000; Suspended 18 months
Jonathan Stuart Solonche
AWC/2008014858901/December 2009
Solonche willfully failed to update his Form U4 to disclose material information.
Jonathan Stuart Solonche: Fined $5,000; Suspended 18 months
November 2009
Alexander Andujar
2007009001001/November 2009
Associated Person Andujar failed to respond to FINRA requests for information. Andujar willfully failed to disclose material information on his Uniform Application for Securities Industry Registration or Transfer (Form U4).
Alexander Andujar: Barred
Alex Amner Borukhov
2008012444301/November 2009
Borukhov failed to timely amend his Form U4 to disclose material information and willfully failed to disclose material information on his Form U4. He engaged in excessive and unsuitable trading in customer accounts, and failed to appear for a FINRA on-the-record (OTR) interview.  
Alex Amner Borukhov: Barred
Ruben A. Cruz aka Ruben Cruz-Alvarez
2008014623501/November 2009
Cruz failed failed to disclose material information on his Form U4 and failed to respond to FINRA requests for information.
Stephen John Doyle
2008012812301/November 2009
Doyle failed to respond to FINRA requests for information and willfully failed to disclose material information on his Form U4.
Stephen John Doyle: Barred
Amanda Michelle Fleites
2008013621001/November 2009
Fleites willfully failed to disclose material information on her Form U4, and failed to respond to FINRA request for information.
Amanda Michelle Fleites: Barred
Jason Edward Greenspon
AWC/2009017219901/November 2009
Greenspon failed to disclose material facts on a Form U4, and failed to provide a written response to FINRA’s requests for information.
Jason Edward Greenspon: Barred
Bill Singer's Comment

 

Anastas Iliev Kalaidjiev
2008013050901/November 2009
Associated Person Kalaidjiev provided an oral, rather than written, response to requests for information, and failed to provide requested documents. Kalaidjiev failed to disclose material information on his Form U4.
Anastas Iliev Kalaidjiev: Fined $5,000; Suspended 2 years in all capacities; Suspended an additional 90 days
Michael C. Metters
AWC/2008012057801/November 2009
Metters willfully failed to amend his Form U4 to disclose material information.
Michael C. Metters: Fined $5,000; Suspended 90 days in all capacities.
Joshua William Moss
2008014116901/November 2009
Associated Person Moss willfully failed to disclose material facts on his Form U4 and failed to respond to requests for information.
Joshua William Moss: Barred
Scott Allan Shapiro
OS/2007009179401/November 2009
Shapiro caused his member firm to charge a $100 service fee to approximately 3,000 customers who had not been provided with prior written notice of the service fee. Shapiro willfully failed to amend his Form U4 and disclose material information on his Form U4. Shapiro failed to respond to FINRA requests for information.
Scott Allan Shapiro: Barred
Mitchell Ted Toland
OS/2007009978502/November 2009
Toland willfully failed to disclose material information on his Form U4.
Mitchell Ted Toland: Fined $5,000; Suspended 45 days
Michael Gene Walker
AWC/2008014921201/November 2009
Walker willfully failed to disclose material information on his Form U4.
Michael Gene Walker: Fined $5,000; Suspended 6 months in all capacities
October 2009
Michael Anthony Nicolosi
2008012516401/October 2009
Nicolosi willfully failed to disclose material information on his Form U4.
Michael Anthony Nicolosi: Barred
Valerie Elaine King (Principal)
2007010236401/October 2009
Sanctions imposed upon withdrawal of appeal to the National Adjudicatory Council 

King willfully failed to amend her Uniform Application for Securities Industry Registration or Transfer (Form U4) with material information, and failed to fully and timely respond to FINRA requests for information and documents. 

Valerie Elaine King (Principal): Fined $5,000; Suspended two concurrent 2-year terms in all capacities
Bill Singer's Comment
Interesting case for two issues. One, the OHO sanctions were imposed upon the withdrawal of the NAC appeal -- that 's a somewhat unusual action in that virtually all appealed cases proceed. Two, King received two "concurrent" 2-year terms.  I don't recall having seen such a suspension in recent years.
September 2009
Lorenzo Vela
2008014409801/September 2009
Vela willfully failed to update his Form U4 in a timely manner to disclose material information and failed to respond to FINRA requests for documents and information.
Lorenzo Vela: Barred
Kevin Joseph Speicher
AWC/2008014413201/September 2009
Associated Person Speicher willfully failed to disclose material facts on his Form U4 and failed to provide information requested by FINRA. 
Kevin Joseph Speicher: Barred
Jimmie Lee Pfeffer Jr.
AWC/2007010685801/September 2009
Pfeffer willfully failed to disclose material facts on Forms U4. 
Jimmie Lee Pfeffer Jr.: Fined $5,000; Suspended 6 months
Christopher James Guetzkow
AWC/2008012446901/September 2009
Guetzkow failed to disclose material information on his Form U4 and failed to appear for an on-the-record interview.
Christopher James Guetzkow: Barred
Pamela Kelley Fox
AWC/2008015140101/September 2009
Fox failed to disclose material information on her Form U4.
Pamela Kelley Fox: Fined $5,000; Suspended 3 months
John Eugene Davidson
2007011375001/September 2009
Davidson willfully failed to update his Form U4 with material information.
John Eugene Davidson: Barred
Stephen Timothy Crawford
OS/2008013892301/September 2009

Crawford borrowed $25,000 from customers and obtained this loan notwithstanding the fact that his member firm had written procedures that prohibited borrowing from, or lending money to, customers. Crawford failed to update his Uniform Application for Securities Industry Registration or Transfer (Form U4) to disclose material information. Crawford failed to respond to FINRA requests to appear for on-the-record testimony. 

Stephen Timothy Crawford: Fined $5,000; Suspended 2 years
Bill Singer's Comment
By now, this is a fairly standard "borrowing" case set of facts. What I find a tad curious is that in addition to the borrowing violation, we have U4 and a "failure to respond" charges. Frankly, I would have expected a bar or a far more serious sanction. Either Crawford had a superb lawyer or FINRA interpreted the three violations differently than the case report implies.
August 2009
Kathleen Ann Shave (Principal)
2008014423801/August 2009
Shave failed to update her Form U4 to disclose material facts and failed to respond to FINRA requests for information.
Kathleen Ann Shave (Principal): Barred
Robert Ahmad Samei
2007010925001/August 2009
Samei willfully failed to disclose material information on his Form U4 and subsequently failed to respond to FINRA requests for information. 
Robert Ahmad Samei: Barred
James Carlton Gardner II
2008012392101/August 2009
Associated Person Gardner willfully failed to disclose material facts on his Form U4 and failed to respond to FINRA requests for information. 
James Carlton Gardner II: Barred
July 2009
Robert Vincent Mitchell (Principal)
AWC/2008014596501/July 2009
Mitchell failed to timely amend his FormU4 to disclose material information. 
Robert Vincent Mitchell (Principal): Fined $5,000; Suspended 30 days
Ruby Louise Melton
AWC/2008014533101/July 2009
Associated Person Melton willfully failed to disclose material information on her Form U4 and failed to respond to FINRA requests for information. (FINRA Case #)
Ruby Louise Melton: Barred
Todd M.Matney
AWC/2008013330101/July 2009
Associated Person Matney willfully failed to disclose material information on his Form U4 and failed to respond to FINRA requests for information.
Todd M.Matney: Barred
Martin Paul Clark
AWC/2008013304001/July 2009
Associated Person Clark willfully misrepresented material facts on a FormU4 by failing to disclose that he had been charged with two misdemeanors involving the wrongful taking of property. 
Martin Paul Clark: Fined $5,000; suspended 6 months
Advanced Equities, Inc.
AWC/2008011633601/July 2009

The Firm failed to 

  • promptly amend registered representatives’UniformApplications for Securities Industry Registration or Transfer (Forms U4) to report the settlement of a lawsuit, 
  • timely submit an amended Uniform Termination Notice for Securities Industry Registration (Form U5) to report an investment-related written complaint against a representative; 
  • timely file FINRA Rule 3070 reports to disclose various reportable events. 
Advanced Equities, Inc.: Censured; Fined $10,000
June 2009
Douglas John Toth
2332079/June 2009
United States Court of Appeals Denied Petition for Review of the Securities and Exchange Commission decision that sustained findings of violation and sanctions on appeal of a National Adjudicatory Council decision on appeal from Office of Hearing Officers decision. 

Toth willfully caused the filing of a Form U4 that contained a misrepresentation of material fact.

Douglas John Toth: Suspended 1 year
Bill Singer's Comment

On July 3, 2003, the Attorney General of New Jersey and the New Jersey Bureau of Securities filed a civil complaint in the Superior Court of New Jersey against Toth and others, alleging, among other things, fraud in connection with the offer, sale or purchase of securities in 2001. The July 2003 New Jersey complaint alleged that Toth and others made materially false and misleading statements and omissions regarding the degree of risk associated with the investment, the intended investment aims of the defendants, and the suitability of the investment for 18 investors. In July 2005, the New Jersey Superior Court dismissed the July 2003 New Jersey complaint without prejudice.

The core fact here does not seem to be in dispute -- namley, that Toth's Form U4 in question failed to disclose the New Jersey civil action against him. The issue in dispute is whether Toth or a former employer was responsible for that failed disclosure.Toth testified that he informed his former employer of all disciplinary actions against him prior to the electronic filing of the Form U4. Toth’s former employer testified that Toth did not inform him of the New Jersey civil action, and that Toth did not review and correct a copy of the Form U4 that the former employer forwarded to him, despite repeated requests for him to do so. FINRA made a credibility determination in favor of the former employer’s version of events, which Toth unsuccessfully appealed..

http://sec.gov/litigation/opinions/2008/34-58074.pdf (SEC Decision)

The FINRA National Adjudicatory Council Decision

Hrant Berge Tosbath
AWC/2008012316401/June 2009
Tosbath failed to disclose material information on his Form U4. 
Hrant Berge Tosbath: Fined $5,000; Suspended 30 days
Kellye Allen Rainey
2007009291201/June 2009
Rainey willfully failed to disclose material information on her Form U4. and failed to respond to a FINRA request to appear for on-the-record testimony. 
Kellye Allen Rainey: Barred
Desmon Renoral Jackson
AWC/2008013359701/June 2009
Jackson failed to timely amend his Form U4 to disclose material information. 
Desmon Renoral Jackson: Fined $5,000; Suspended 30 days
Shannon Mitchell Hancock
AWC/2008011980501/June 2009
Hancock willfully failed to update his Uniform Application for Securities Industry Registration or Transfer (Form U4) to disclose material information. 
Shannon Mitchell Hancock: Fined $5,000; Suspended 5 months in all capacities
Trade Station Securities, Inc.
AWC/2007009466601/June 2009
The Firm failed to establish, maintain and enforce an adequate supervisory system and written procedures to detect statutorily disqualified individuals and to ensure the reporting of disclosable events as required by NASD Rule 3070. The Firm did not report to FINRA that it was associated with a person subject to statutory disqualification. 
Trade Station Securities, Inc.: Censured; Fined $15,000
May 2009
Mark Steven Ramos (Principal)
OS/2007011247201/May 2009
Ramos willfully failed to disclose material information on his Form U4. 
Mark Steven Ramos (Principal): Fined $5,000; Barred in Principal capacity only; Suspended 1 year all capacities
Kevin J. MacDonald
2007010344801/May 2009
MacDonald willfully failed to disclose material information on his Form U4 and failed to respond to FINRA requests for information. 
Kevin J. MacDonald: Barred
Alan Joseph Ganim
AWC/2007010192201/May 2009
Ganim willfully failed to disclose material information on his Form U4. 
Alan Joseph Ganim: No fine in light of financial status; Suspended 3 months
Miriam Therese Dever
AWC/2007010858601/May 2009
Dever signed a customer’s name, without the customer’s authorization or consent, to forms to consolidate accounts in accordance with her wishes. Dever failed to disclose material information on her Form U4.
Miriam Therese Dever: Fined $5,000; Suspended 3 months
Peter M. Castelluccio
AWC/2008012581401/May 2009
Associated Person Castelluccio willfully failed to disclose material information on his Form U4. 
Peter M. Castelluccio: Fined $5,000; Suspended 3 months
Brian Scott Brown
2008013493101/May 2009
Brown willfully failed to disclose material information on his Uniform Application for Securities Industry Registration or Transfer (Form U4), and failed to respond to FINRA requests for information. 
Brian Scott Brown: Barred
Jason Adam Craig
E8A2004095901/May 2009
Securities and Exchange Commission sustained findings of violation and sanctions on appeal of a National Adjudicatory Council decision on appeal from Office of Hearing Officers decision. 

NASD found that Associated Person Craig willfully failed to disclose four felony charges and one misdemeanor conviction on his Uniform Application for Securities Industry Registration ("Form U4") in violation of NASD Membership Rule IM-1000-1 and Conduct Rule 2110.The SEC imposed the sanction following appeal of a NAC decision. The sanction was based on findings that Craig willfully failed to disclose material information on his Form U4. 

SEC Decision: http://sec.gov/litigation/opinions/2008/34-59137.pdf 

Jason Adam Craig: Barred
April 2009
Philip Donato Rossi
2007010767201/April 2009
Rossi engaged in outside business activities, for compensation, and failed to give prompt written notice to his member firm. He failed to disclose material information on his Form U4 and failed to respond to FINRA requests for information.
Philip Donato Rossi: Barred
William Andrew Drake Jr.
AWC/2008012706601/April 2009
Associated Person Drake failed to disclose material information on his Form U4. 2008012706601
William Andrew Drake Jr.: Fined $5,000; Suspended 1 month in all capacities
Chase Investment Services Corp.
AWC/2007009764901/April 2009
The Firm failed to accurately complete Forms U5 following the termination of registered representatives alleged to have committed theft, fraud or violations of investment-related rules. The failure to complete Forms U5 hindered the investing public’s ability to access information regarding the termination of registered representatives. Also, the Firm failed to establish and maintain a supervisory system and written procedures reasonably designed to achieve compliance with its obligation to complete and submit accurate Form U5 filings to FINRA. 
Chase Investment Services Corp.: Censured; Fined $150,000
LF Financial, LLC and Jed Philip Kaplan (Principal)
AWC/2007007150401/April 2009

Acting through Kaplan, LF Financial failed to

  • report, or timely report, disclosable settlements and disclosable regulatory orders; 
  • timely file summary and statistical information for customer complaints that the firm received. 
  • file a Uniform Application for Securities Industry Registration or Transfer (Form U4) amendment and failed to timely file amendments to Uniform Applications for Broker-Dealer Registration (Forms BD), Forms U4 or Uniform Termination Notices for Securities Industry Registration (Forms U5). 

LF Financial, LLC: Censured; Fined $15,000 jt/several with Kaplan

Jed Philip Kaplan (Principal) Censured; Fined $15,000 jt/several with LF Financial

March 2009
Anton Yereshkin
2007011504801/March 2009
Associated Person Yereshkin willfully failed to disclose material facts on his Form U4.
Anton Yereshkin: Fined $5,000; Suspended 1 year
Cynthia Nawita Pete
2007011080601/March 2009
Associated Person Pete failed to respond to FINRA requests for information and willfully failed to disclose material information on her Form U4.
Cynthia Nawita Pete: Barred
Max A. Mora
AWC/2008012208901/March 2009
Associated Person Mora willfully misrepresented material facts on his Form U4. 
Max A. Mora: Fined $5,000; Suspended 4 months
Michael Lee Ihrig
AWC/2007010236301/March 2009
Associated Person Ihrig willfully failed to disclose materials facts on his Form U4. 
Michael Lee Ihrig: Fined $5,000; Suspended 6 months in all capacities.
Paul J. Hytken
AWC/2007007727801/March 2009
Hytken willfully failed to amend his Uniform Application for Securities Industry Registration or Transfer (Form U4) with material information. 
Paul J. Hytken: Fined $5,000; Suspended 20 business days in all capacities
Hedge Fund Capital Partners, LLC and Howard Gordon Jahre (Principal)
OS/2007008358101/March 2009

Acting through Jahre, the Firm filed a misleading and inaccurate Uniform Termination Notice for Securities Industry Registration (Form U5) in connection with a registered representative’s termination. 

Hedge Fund Capital Partners, LLC: Censured; Fined $10,000

Howard Gordon Jahre: Fined $10,000; Suspended 10 business day in Principal Capacity

Bill Singer's Comment
An interesting case. You rarely see any firm or individual cited these days for filing a "misleading and inaccurate" U5.  Moreover, since FINRA did not allege that the filing was done willfully, this seems a fairly minor matter but still interesting for the sanctions.
February 2009
Norman Vernon Montgomery II
OS/2007009882301/February 2009
Montgomery he willfully failed to timely amend his Form U4 with material information; andfailed to timely respond to FINRA requests for documents and information. 
Norman Vernon Montgomery II: Fined $7,500; Suspended 2 years in all capacities
Zenaida Rita Garcia
2007010993901/February 2009
Associated Person Garcia failed to respond to FINRA requests for documents and information; and willfully failed to disclose material information on her Form U4.
Zenaida Rita Garcia: Barred
Israel I. Echi
2007010774001/February 2009
Associated Person Echi willfully failed to disclose material information on his Form U4 and failed to timely respond to FINRA requests for information. 
Israel I. Echi: •Fined $5,000; Suspended 1 year for willful failure to disclose information •Fined $2,500; Suspended 2 months for failure to timely respond to requests for information •Suspensions to run concurrently
Iqbal Ashraf (Principal)
OS/2007007372701/February 2009
Ashraf willfully failed to disclose material information on his Uniform Application for Securities Industry Registration or Transfer. 
Iqbal Ashraf (Principal): Fined $5,000; Suspended 6 months in all capacities
January 2009
Edward Darell Williams
OS/2007009202401/January 2009
Associated Person Williams failed to disclose material information on his Form U4 and failed to respond timely to FINRA requests for information.
Edward Darell Williams: Fined $7,500; Suspended 18 months
Yvonne Thomas
OS/2006004375701/January 2009
Thomas willfully failed to disclose material information on her Forms U4. 
Yvonne Thomas: No fine in light of financial status; Suspended 2 years in all capacities
James Jhun
AWC/2007009278101/January 2009
Associated Person Jhun failed to disclose material information on his Form U4. 
James Jhun: Fined $5,000; Suspended 60 days in all capacities
Avidan Danny Fishman (Principal)
2007008812801/January 2009
Fishman willfully failed to disclose material information on his Form U4 and his member firm’s annual compliance forms. Also, he engaged in an outside business activity, for compensation, and failed to provide prompt written notice to his member firm.
Avidan Danny Fishman (Principal): Fined $2,500; Suspended 6 months in all capacities (willful failure to disclose) and 1 month in all capacities (outside business activity)
Enforcement Actions
It's All Over Now: My 42-year Wall Street Journey by Bill Singer, Esq.
January 30, 2024
Before my second career as a lawyer, I was the third generation of my family in the wine and liquor industry. In 1981, I started law school; and in 1982, I was hired as a law student in Smith Barney, Harris & Upham's Legal Department. After I graduated law school, I was a regulatory lawyer with the American Stock Exchange and then with the NASD (now... Read On
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