Enforcement Actions
Financial Industry Regulatory Authority (FINRA)
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.
December 2009
Stephen Paul Leary
AWC/2008011999901/December 2009
Leary submitted false expense reports to his member firm requesting reimbursement of expenses he represented as bona fide business expenses that he had incurred and paid relating to his employment at the firm. The expense reports were false in that they included expenses that Leary had not incurred and paid, or had not incurred in furtherance of his firmís business. In connection with certain expenses on the reports that were not legitimate business expenses, Leary submitted receipts and/or other documentation purporting to substantiate the expenses that he either had fabricated or knew did not document bona fide business expenses. As a result of Learyís false expense reports, his firm adjusted the type and amounts of income it reported for him in one year.
Stephen Paul Leary: Barred
Tags:  Expenses     |    In: Cases of Note : FINRA
Timothy Terrence Freeman
AWC/2008014928501/December 2009
Freeman misused funds that were not his by charging personal expenses on his corporate credit card, in violation of his member firmís policies, and not making payment when it was due. Freemanís member firm did not authorize the charges and paid the outstanding balance of approximately $2,000 on Freemanís corporate card after he failed to pay the bill for over six months.
Timothy Terrence Freeman: No Fine in light of financial status; Suspended 3 months in all capacities
Tags:  Expenses    Corporate Credit Card     |    In: Cases of Note : FINRA
November 2009
Gary Steven Swiman
OS/2008012094801/November 2009
Swiman improperly obtained approximately $607.21 from his member firm by submitting inaccurate travel and expenses reports and seeking reimbursement for expenses not related to firm business. Swiman subsequently reimbursed the firm. By submitting the inaccurate expense reports, Swiman caused his member firm to maintain inaccurate books and records.
Gary Steven Swiman: No fine (in light of financial status); Suspended 2 years
Tags:  Expenses     |    In: Cases of Note : FINRA
Louis Tomasello III
OS/2006004832901/November 2009

Tomasello misappropriated $5,716 from his member firm by submitting false and misleading invoices and expense reports to the firm and improperly seeking and receiving reimbursement for bogus charges by claiming them as legitimate business expenses (further causing his member firm to have false and inaccurate books and records).

Tomasello provided gifts in excess of $100 to registered representatives at another firm.

Tomasello provided false testimony and failed to provide requested documents to FINRA staff.

Louis Tomasello III: Barred
Tags:  Expenses    Gifts     |    In: Cases of Note : FINRA
Enforcement Actions