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.

Edward Lee Pinney Jr.
AWC/2010024882501

While registered with a member firm, Pinney borrowed an aggregate of approximately $205,000 from customers, who were his long-time friends; each loan was a personal loan Pinney used to meet his personal financial obligations. Pinney repaid the outstanding balance of $85,000 owed on one of the loans but has not repaid any of the $120,000 on the loan to the other customer, which is payable on demand. The findings also stated that the firm had written procedures forbidding registered representatives from borrowing funds from customers except under certain circumstances; Pinney’s loans did not fit within any of the exceptions in the firm’s procedures.

Edward Lee Pinney Jr.: Fined $5,000; Suspended 3 months; Ordered to repay $120,000 to customer

Tags: Borrowing