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.

Ronald William Cheney
AWC/2010022535201

Cheney borrowed $10,000 from his customers without his member firm’s written authorization.  Although his firm’s WSPs require review and written approval before a registered representative may borrow from a customer , Cheney did not request or receive the firm’s permission to borrow money from the customers.  Cheney incorporated this loan into another loan from the customers, for a total sum borrowed of $23,000.  Cheney completed his firm’s annual certification questionnaire in which he was asked if he had borrowed from, or loaned money to, any customers, and responded that he had not. 

Ronald William Cheney : Fined$10,000; Suspended 60 business days.

Tags: Borrowing  Annual Compliance Certification