NOTE: Stipulation of Facts 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 and to the entry of findings.

FINANCIAL INDUSTRY REGULATORY AUTHORITY
FINRA
2009
UNDISCLOSED SETTLEMENTS/GUARANTEEING AGAINST LOSSES

NASD Conduct Rule 2370

NYSE Rule 352

VISIT WALL STREET'S LEADING ONLINE COMMUNITY
BrokeAndBroker.com

Woods paid a customer $353 to compensate the customer for trading expenses, without his member firm’s authorization or permission. 

Stephen John Woods: Fined $5,000; Suspended 10 business days

Frick engaged in outside business activities and private securities transactions without prior written notice to her member firm. Frick was provided a money order by a customer in order to open an account at her member firm on behalf of the customer’s children, misplaced the money order and, in an attempt to settle the customer’s potential complaint in this matter, deposited $1,100 of her own personal funds into an account at her firm for the benefit of the customer’s children without notifying the customer or the firm. Frick used the funds she had previously deposited into the account to purchase mutual funds for the account without the customer’s knowledge, authorization or consent.

Gail Sylvenia Frick: Fined $25,000; Suspended 15 months

Foreman settled a customer complaint away from his member firm without the firm’s knowledge or involvement in the settlement, and Foreman also guaranteed the customer against loss. 

Sam Aubrey Foreman Jr.: Fined $10,000; Suspended 30 business days

Daeger attempted to settle a customer complaint by making a $1,500 deposit into the customer’s bank checking account without his member firm’s knowledge or consent. 

Jason Jude Daeger: Fined $5,000; Suspended 10 business days

Jones engaged in excessive and unsuitable trading in customers’ accounts. Also, Jones settled a customer complaint for $1,600 without his employers’ knowledge or consent. 

Steven Jones: Fined $7,500; Suspended 18 months; Ordered to pay $70,106.90, plus interest, in restitution to customers.

Hill issued checks totaling $479,450 from customer accounts to corporate payees representing that he was purchasing race horses for the customers; but, instead, converted $350,000 to his own use by arranging for the corporate payees to issue checks made payable to him for the same dollar amounts, less a small administrative fee. Also, Hill settled a customer complaint for $12,000 and failed to inform his member firm about the complaint. 

Richard Wayne Hill: Barred

Berteletti created a false and misleading account summary and provided it to a customer, and failed to respond to FINRA requests for information. Berteletti engaged in securities transactions in a customer’s account without the customer’s authorization and consent, and without discretionary authority. Berteletti settled a customer complaint away from his member firm. 

Richard M. Berteletti Jr.: Barred

Jensen paid $18,000 to another firm’s trader and the trader’s relative so that the trader would continue to conduct his firm’s securities transactions through its account with Jensen. Also, while serving as the registered representative of record on a customer’s corporate account, Jensen shared in losses and gains in the account without written authorization from his member firm or the customer, and he did not share in the profits and losses in direct proportion to his financial contributions to the account. 

Patrick James Jensen: No fine in light of financial status; Suspended 1 year

Sirota attempted to settle a customer complaint by sending the customer a check and a letter for her to sign retracting the complaint, without providing prior notice to his member firm or obtaining the firm’s consent. 

Ronald Harris Sirota: Fined $5,000; Suspended 10 business days

Without permission or authorization from his member firm, he paid $29,000 to public customers in an attempt to prevent them from filing a complaint against him with his firm. 

Lance Jeffrey Ziesemer: Fined $5,000; Suspended 20 business days in all capacities

Kirk guaranteed a public customer against loss in connection with a securities transaction. 

Michael D. Kirk: Fined $2,500; Suspended 10 business days in all capacities

Chiu paid $3,125 to a public customer to settle a complaint the customer made, without her member firm’s knowledge or approval. 

Jun M. Chiu: Fined $5,000; Suspended 10 business days in all capacities