NOTE: 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 and to the entry of findings.

2005
PRIVATE SECURITIES TRANSACTIONS

 

 
Terrence Edward Maryniw
AWC/E8A2003082802/December 2005 

Maryniw purchased securities in the securities account of a stockbroker, who was registered at a different NASD firm than Maryniw --- and he did so without notifying 

  • the other NASD firm that he was associated with an NASD firm, and 
  • his own firm that he had a beneficial interest in the other brokerís securities account

Maryniw participated in a private securities transaction in that he failed and neglected to give written notice to his employing NASD firm, and failed to receive written approval from his firm, prior to engaging in such activity. 

Fined $5,000; Suspended 10 business days in all capacities

Donald Jordan Haskell
AWC/E0220040658-01/December 2005

Haskell participated in private securities transactions without providing written or oral notification to, or receiving prior written approval from, his member firm. He settled a customer complaint and did not inform his member firm of the customerís complaints, or of his agreement to personally help repay the notes to the customer. 

Fined $5,000; Suspended 6 months in all capacities; Requalify as General Securities Representative 

Timothy Bryan Dickey
C0520050017/December 2005

Dickey recommended and effected an investment strategy to public customers without having a reasonable basis for believing that the strategy was suitable for them given their financial needs and conditions. Dickey participated in private securities transactions without providing prior written notice and obtaining approval from his member firm. Dickey failed to respond to NASD requests for information. 

Barred; Fined $221,846.52 (disgorgement)

John Barry Chambers
OS/CLI20040031/ELI2002045104/December 2005

Chambers 

  • induced public customers to submit $180,600 for investing purposes to his company or its agent and, without their knowledge, authorization or consent, he misused and/or converted the customersí funds for his own use and benefit;
  • recommended securities transactions to public customers without reasonable grounds to believe the investments were suitable for them in light of their financial situations, investment objectives, needs and the risks associated with the investments;
  • engaged in private securities transactions and outside business activities without providing his member firm with prior written notice; and
  • willfully failed to amend and to timely submit an amendment to his Form U4 to disclose material information. 

Barred; Ordered to pay $73,750 in restitution

Stephen Craig Richmond
C05050012/November 2005

Richmond engaged in private securities transactions without providing prior written notice to his member firm. Also, he failed to respond to NASD requests for information.

Barred

Francisco Galvan (Principal) 
OS/C01040017/November 2005

Galvan participated in private securities transactions without providing prior written notice to his member firm. He recommended securities transactions to a public customer without having a reasonable basis for believing the recommendations were suitable for the customer based on the customerís financial situation and needs. He failed to respond to NASD requests for documents and information. 

Barred

John Charles Sabo (Principal)
AWC/E9B2004034201/October 2005

Sabo engaged in private securities transactions without prior written notice to, or approval from, his member firm. 

Fined $10,000; Suspended 7 months in all capacities

Jan Lynn Brueggemann 
OS/NASD Complaint #E022004059104/NASD Offer #C0220050053/October 2005

Brueggemann participated in a private securities transaction without providing prior written notification to, and receiving prior written approval from, his member firm. 

Fined $7,400; Suspended 30 business days in all capacities

Richard Carvel Brown 
AWC/E3A2004031401/October 2005

Brown participated in private securities transactions without providing prior written notice to his member firm. 

Fined $5,000; Suspended 15 business days in all capacities

Robert Edmond Pompey
AWC/E8A2004094801/September 2005

Pompey participated in private securities transactions for compensation without providing written notice, and failed to receive written approval from his member firm prior to engaging in such activities. He failed to timely respond to NASD requests for information. 

Fined $7,500; Ordered to disgorge $79.447; Suspended 1 year in all capacities

John Daniel Minerva (Principal)
AWC/C9B050043/August 2005

Minerva participated in a private securities transaction without prior written notice to, or prior written approval from, his member firm; and he failed to respond to NASD requests for information. 

Barred

Steve Eric Milstein-Roth
OS/C02050035/August 2005

Milstein-Roth participated in private securities transactions without prior written notice to, or approval from, his member firm; and hefailed to respond to NASD requests for documents and information. 

Barred

Kyle Timothy Holland (Principal)
AWC/C06050016/August 2005

Holland failed to ensure that his member firm included a $500,000 settlement agreement as a liability of the firm. He filed inaccurate FOCUS Reports with NASD that significantly overstated the firmís net capital position and Holland failed to give NASD notice of the firmís net capital deficiencies.  Holland participated in private securities transactions and failed to give his member firm prior notice of his transactions involving a stock, his role therein, and whether he might receive compensation in connection with the transactions.

Fined $25,000; Suspended 1 month in all capacities; Suspended 3 months in principal capacity

Randall Patrick Aungst
AWC/C8A050070/August 2005

Aungst participated in private securities transactions, for compensation, failed to give written notice of his intention to engage in such activities to his member firm, and failed to receive written approval from his member firm prior to engaging in such activities. 

Fined $5,000; Suspended 1 year in all capacities.

Daniel Patrick Walker 
AWC/C04050019/July 2005

Walker participated in private securities transactions without providing prior written notification to and receiving prior written approval from his member firm.

Fined $5,000; Suspended 6 months in all capacities; REquired to pay $30,353 plus interes in disgorgement as partial restitution to public customers.

Teekachand Richard Tiwari
AWC/C10050031/July 2005

Tiwari participated in private securities transactions without providing written notification to or obtaining written approval from his member firm. Tiwari engaged in outside business activities without providing prompt written notice to his member firm. In addition, he failed to respond to NASD requests to appear for an on-the-record interview. 

Barred

John Francis Ranhofer
OS/C02040033/July 2005

Ranhofer participated in a private securities transactions without providing prior written notice to or receive approval from his member firm.  Ranhofer engaged in outside business transactions and failed to give prompt notice of these activities to his member firm. Ranhofer failed to disclose material facts on his Form U4. (NASD Case #)

Barred

Robert Kurtis Mauss 
C06050010/July 2005

Mauss engaged in private securities transactions without providing prior written notice to his member firm. He engaged in outside business activities and received compensation in connection with such activity without providing prompt written notice to his member firm. Mauss failed to disclose material facts on his Form U4. 

Barred.

David A. Johnson 
C9A040061/July 2005

Johnson participated in private securities transactions without providing prior written notice to and receiving written permission from his member firm. He failed to respond to NASD requests for documents and information. 

Barred; Ordered to pay $42,702.83 plus interest in restitution to public customers

David Alan Roth
AWC/C02050028/June 2005

Roth participated in private securities transactions for which he expected to receive compensation, but did not receive prior written approval from his member firm. 

Fined $5,000; Suspended 3 months in all capacities

Roger Angelo Kapsalis
AWC/C10050018/June 2005

Kapsalis willfully failed to disclose material facts on his Form U4. Also, he effected securities transactions away from his member firm and failed to provide written notification to his member firm. 

Fined $10,000; Suspended 9 months in all capacities

David Leo Dennis
C05040076/June 2005

Dennis participated in private securities transactions without providing prior written notice to his member firm. Dennis failed to respond to NASD requests for information. 

Barred

Terry Jon Atzen (Principal) 
AWC/C3B050008/June 2005

Atzen engaged in private securities transactions without providing prior notice to, and receiving approval from, his member firms.

Fined $88,342.51 (includes $78,342.51 disgorgement); Suspended 2 years in all capacities

Joseph Abbondante (Principal) 
C10020090/June 2005  (Decision by NAC following OHO Decision)

The NAC found that  Abbondante 

  1. participated in private securities transactions without providing prior written notice to, and receiving prior written approval from, his member firm; 
  2. recklessly made material misrepresentations and omissions to public customers with respect to an investment fund; 
  3. engaged in outside business activities without providing prompt written notice to his member firm; and 
  4. knowingly facilitated another in providing false account statements to seven customers of his member firm.

Barred; Required to pay public customers $276,265 in restitution.

Michael Allen Von Kanel
AWC/C05050009/May 2005

Von Kanel  

  • participated in private securities transactions without providing prior written notice to his member firm;
  • failed to disclose material information on his Form U4; and
  • falsified documents in order to obtain public customer funds for investment in private securities transaction by creating loan requests without the knowledge or authority of the customers. 

Barred; Required to pay $28,000 plus interest in restitution to a public customer in the event of he seeks relief from any statutory disqualification.

Laurence Bryan Schweiger
AWC/C07050012/May 2005

Schweiger participated in private securities transactions without prior written notice or approval from his member firm. 

Barred

Robert Michael Graves Jr.
OS/C06050002/May 2005

Graves 

  • engaged in a private securities transaction with a public customer without providing written notice to his member firm;
  • recommended an unsuitable security to a public customer;
  • participated in outside business activities without prior written notice to his member firm; and
  • received a loan from a public customer, which violates his member firmís policy prohibiting the receipt or solicitation of loans from customers. 

Fined $7,500; Suspended 20 business days in all capacities

Bill Singer's Comment: You know how you never see someone for years and then twice in the same day.  Well, check out the DeBock case where we have another sanction for borrowing money from a customer.
Richard Drayton Jr.
AWC/C9A050010/May 2005

Drayton engaged private securities transactions without prior written notice to and approval from his member firm. 

Fined $10,000; Suspended 2 years in all capacities.
Paul Roger Burgeson
AWC/C04050010/May 2005 

Burgeson engaged in private securities transactions without notifying or receiving prior written approval by his member firm; and failed to respond to NASD requests for information. 

Barred

Lawrence Bryan Schweiger (Principal)
AWC/C07050012/April 2005

Schweiger participated in private securities transactions, and failed to provide prior written notice to, and receive prior written approval from, his member firm. 

Barred

Roger Grieco
AWC/C10050006/April 2005

Grieco effected a private securities transaction away from his member firm by facilitating an investment in a $50,000 promissory note for public customers. He failed to provide written notification to his member firm prior to effecting the transaction. 

Fined $7,500; Suspended 45 days

Jay James Gianni
AWC/C8A050011/April 2005 

Gianni participated in private securities transactions without providing prior written notice to, and receiving prior written approval from, his member firm. 

Barred with right to reapply after 5 years

Stewart Reed Ford 
AWC/C02050012/April 2005

Ford participated in private securities transactions, received $42,253 in commissions, and failed to provide prior written notice to, and receive prior written approval from, his member firm. 

Fined $47,253; Suspended 2 years.

Kenneth Joseph Clairmont, Jr.
AWC/C11050003)/April 2005

Clairmont engaged in private securities transactions without prior written notice to, or approval from, his member firm. 

Fined $5,000; Ordered to disgorge $25,000 received in connection with the securities sales, and pay partial restitution, plus interest; Suspended 3 months all capacities

Ronald Dean Udy
AWC/C3A050005/March 2005 

Udy engaged in private securities transactions without providing prior written notice to his member firm. Further, he acted in a supervisory capacity at his member firm without registration as a general securities principal or investment company and variable contract products principal. 

Udy was Fined $12,500; Suspended 25 days in all capacities; Suspended 25 days in principal/supervisory capacity.

Memory Ursula Pritchard 
AWC/C02050004/March 2005

Pritchard participated in private securities transactions, received $53,073 in commission, and failed to provide prior written or oral notification to, and receive prior written approval from, her member firm. 

Pritchard was Fined $12,073 (includes $2,073 in disgorgement of commissions); Suspended 12 months in all capacities

Herman Forrest Lombard
AWC/C04050006/March 2005

Lombard engaged in private securities transactions totaling $256,000 without notifying his member firm of these transactions and his proposed role therein, and without receiving prior written approval from his member firm. 

Lombard was Fined $5,000 and Suspended for 6 months

Alicia Ann Hiller
AWC/C02040057/March 2005 

Hiller engaged in  private securities transactions without prior notice to and approval from her member firm.

Hiller was NOT Fined because of financial statues; Suspended 3 months in all capacities.

Derrick Ross Edward Doba (Principal) 
AWC/C02040056/March 2005

Doba engaged in  private securities transactions without prior notice to and approval from his member firm. 

Doba NOT Fined in light of financial status; Suspended 4 months in all capacities.

Joseph Frank Pappalardo, Jr.
AWC/C10040188/February 2005

Pappalardo effected  private securities transactions and failed to provide prior written notification to his member firm. He failed to respond to NASD requests to appear for an on-the record interview. 

Pappalardo was Barred.

Robert Joseph Pagan (Principal)
AWC/C9B040111/February 2005

Pagan participated in  private securities transactions without providing prior written notice to or prior written approval from, his member firms. 

Pagan was Fined $5,000; Ordered to Disgorge $11,017.05 in partial restitution to public customers, and Suspended 6 months in all capacities.

Richard Antonino
AWC/C9A040058/February 2005

Antonino engaged in  private securities transactions and failed to give prior written notice of such transactions to his member firms with which he was associated. 

Antonino was Fined $7,500 and Suspended 3 months in all capacities.

Lacy McClure Walthall, III
C07040048/January 2005

Walthall engaged in outside business activities and  private securities transactions without prompt written notification to his member firm and his firmís written approval to engage in the private securities transactions. 

Fined $35,000, suspended from 1 year in all capacities; and ordered to requalify by exam as a general securities representative (Series 7) before re-entering the securities industry. 

David Allen Regis
C06040017/January 2005

Regis was apparently a "limited" securities representative )not registered as a General Securities Representative) during a period in time when he was apparently selling payphone investment contracts to public customers. Such sales were outside his permissible range of products.  He engaged in  private securities transactions without prior written notice to his member firm describing the proposed transaction, his proposed role in the transaction, and stating whether he had received, or might receive, compensation.  Regis failed to respond to NASD requests to appear and give testimony. 

Barred

Bill Singer's Comment:  Our old friend the payphone investment contracts pops up bright and early for 2005.  Be careful when handling these products, they are generally deemed to be securities . . . even though, time and time again, many RRs just don't seem to realize it.
Brian Ladah
OS/C11040038/January 2005

Ladah engaged in  private securities transaction soutside the normal scope of employment with his member firm and failed to give prior written notice to, and receive approval from, his member firm. Also, he engaged in outside business activities without providing prompt written notice to his member firm. 

Fined $5,000; suspended 2 years in all capacities; ordered to disgorge to customers $49,200 commissions plus interest

Herbert Ivan Kay
C3A030015/January 2005

Kay engaged in  private securities transactionsand failed to provide prior written notice to his member firm.

Barred

William Franklin Herndon (GSP)
AWC/C04040057/January 2005

Herndon engaged in  private securities transactions totaling $112,000 without notifying his member firm of the transactions and his role therein, and without receiving prior written approval from his member firm. 

Fined $5,000 and suspended 60 days in all capacities.



Email Bill Singer Connect with Bill Singer on Facebook Follow Bill Singer on Twitter Link up with Bill Singer on LinkedIn Join Bill Singer on Google+