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.
Anthony Brent Faithauer
AWC/2008016455601/December 2009
Faithauer misappropriated approximately $853,795 from customers for his own personal benefit. Faithauer misappropriated the funds by forging customers’ signatures on checks, distribution forms and withdrawal slips without their knowledge or authorization and by converting insurance premiums and funds surrendered froma customer’s fixed annuity.
Faithauer borrowed $90,000 from a customer contrary to his member firm’s written procedures that prohibited registered representatives from borrowing money or securities from customers under any circumstances. Faithauer failed torespond to FINRA requests for information.
Anthony Brent Faithauer: Barred
Brian Joseph Hoshowski
AWC/2008012450001/December 2009
Hoshowski borrowed $137,000 from his member firm’s customers without prior written notice to, or prior approval from, his member firm. Hoshowski engaged in private securities transactions and failed to provide prior written notification to the firm. The aggregate value of all notes sold totaled approximately $1.06 million.
Hoshowski failed to respond to a FINRA request to provide testimony.
Brian Joseph Hoshowski: Barred
David Michael Scaffe
AWC/2008013809702/December 2009
Scaffe borrowed funds from member firm customers when the firm expressly prohibited its representatives from borrowing funds from customers and included such prohibition in its compliance manual. Scaffe signed annual compliance questionnaires on which he acknowledged that he had received or had access to the firm’s compliance manual and did not request or obtain permission from his firm to borrow funds from customers, nor could he under the firm’s procedures. Scaffe failed to respond to FINRA requests for a written statement.
David Michael Scaffe: Barred
Ronen Zakai
AWC/2007010628701/November 2009
Zakai borrowed $16,000 from one of his member firm’s customers. Zakai’s member firm did not know of or otherwise approve of the loan, and, moreover, the firm’s policy prohibited such loans.
Ronen Zakai: Fined $5,000; Suspended 30 days
Samuel James Mugavero Jr.
AWC/2008014827501/November 2009
Registered Principal Mugavero borrowed $10,000 from a firm customer contrary to his firm’s written policies prohibiting registered representatives from borrowing money from customers, and he failed to notify the firm about the loan. Mugavero repaid $1,000 of the loan but $9,000 remains outstanding. Mugavero failed to respond to FINRA requests to provide personal bank records.
Samuel James Mugavero Jr.: Barred
Stuart Williams Kasin
AWC/2009016832901/November 2009
Kasin borrowed at least $100,750 from a member firm customer without the firm’s prior written approval. The customer withdrew $50,000 from a variable annuity to loan to Kasin, and Kasin prevented the firm from learning the purpose of the transaction and precluded the firm from supervising it by sending the withdrawal request directly to the annuity issuer. The withdrawal form directed the insurance company to send a check to Kasin’s personal residential address, which Kasin deposited into his bank account without notifying the firmof the transaction or his involvement.
Stuart Williams Kasin: Barred