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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.

When Self-Help Isn't Such A Good Idea:
  Settling With Clients Without Your Firm's knowledge 

 

by Bill Singer bsinger@rrbdlaw.com

Michael James Burbage
(AWC/C10030068/Oct 2003)
Burbage converted $14,173.76 from the account of a public customer without the customer's prior knowledge, authorization, or consent. He also altered an internal firm document used to authorize the refund of money to customer accounts by changing the dollar amount listed and approved by a supervisor from $488.26 to $14,488.26 in an effort to reimburse the  customer's account.
Barred.

Alexander Altman
(AWC/C9B030066/Oct 2003)
Altman failed to disclose to his member firm payments he had made totaling $229,243.83 to public customers to make up for the interest customers lost when bonds defaulted. 
Fined $5,000; Suspended 10 business days in all capacities.

Patrick Albert Quigley
(AWC/C3A030030/Sept 2003)
Quigley converted $4,991 from a customer and settled a customer's complaint by signing a promissory note in the amount of $43,432.30 without informing the firm.  It is unclear from the NASD's official description as to whether the allegations pertain to two customers or one.
Barred

Richard Edward Casner (AWC/C06030016/Sept 2003)
Casner conducted unauthorized transactions and after the customer complained to him, Casner attempted to settle the complaint by depositing into the account the amount of the losses generated.  He did not disclose the complaint or the deposit to his firm, and he failed to respond to NASD requests for information.
Barred

Stephen Ralph Kittelson (AWC/C04030029/July 2003)
Kittelson negotiated and entered into a settlement agreement with a public customer without the knowledge or consent of his member firm.  Additionally, he engaged in unauthorized outside business activities.
Fined $7,500; Suspended 60 days in all capacities

Rodney Wade Ratclff (AWC/C8B030009/June 2003) 
Wade, without his firm's knowledge or consent, negotiated and entered into a settlement agreement to pay $850 to a public customer in order to resolve the customer's complaint about a variable universal life product sales charge. 
Fined $2,500; Suspended 10 business days all capacities

Carlos Miguel Garcia, III (AWC/C11030007/May 2003)
Garcia settled two customer complaints totaling $26,000 without his BD's knowledge or approval.
Fined $10,000; Suspended 6 months in all capacities.

Gregory Emmett Bloom (AWC/C07030016/May 2003)
Bloom attempted to settle a customer complaint by making payments totaling $6,000 to a public customer without informing his member firm.
Fine waived in light of financial status; Suspended 10 business days in all capacities.

William Wong (AWC/C02030017)May 2003
Wong paid a public customer $18,431 from his personal checking account in order to settle a complaint without his BD's knowledge or consent.
Fine waived in light of financial status)Suspended from association with any NASD member in any capacity for 20 business days. 

Bruce William Haffner (OS/C8A020060/ April 2003) Haffner entered into a settlement agreement with customers (wherein he agreed to compensate them for losses sustained) without his firmís knowledge or consent. He also exercised discretion without prior written authorization from the customers and without his firmís prior written acceptance of the accounts as discretionary. Finally, he failed to respond to requests for documents and information. 
No fine per financial status, suspended 120 days in all capacities.

Edward Paul Galvan(C05020032/MARCH 2003)
Galvan executed an unauthorized transaction in a customer's account for $5,393.75, resulting in a $3,950 loss upon liquidation. Galvan then deposited $2,000 in the customer's account as partial reimbursement without informing his member firm of said settlement. 
Barred in all capacities (sanction imposed for failure to respond)

Andrew Sirico (AWC/CLI020012/FEBRUARY 2003)
Registered Principal Sirico settled a public customer's written complaint alleging sales practice violations by paying the customer $6,000 without informing and obtaining authorization from his member firm. 
Fined $5,000 and suspended from association with any NASD member in any capacity for 3 months.

Sundarajan Krishnaswamy (AWC/C9B020093/FEBRUARY 2003) RR Krishnaswamy gave $180 to a public customer to settle the customer's complaint concerning commissions charged on a municipal bond transaction, without the knowledge or consent of his member firm. 
Fined $2,500 and suspended from association with any NASD member in any capacity for 10 business days. 





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Fax at 720-559-2800
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