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.
March 2010
Charles Jesse Duff
AWC/2008011678301/March 2010
Duff caused customer orders to be executed in, and facilitated the distribution of, approximately 20 million shares of unregistered securities in stocks, and failed to perform thorough searching inquiries to ensure that the securities or transactions were exempt from registration, freely-tradable and unrestricted.
Charles Jesse Duff: Fined $50,000 including partial disgorgement of $25,000 in commission; Suspended 30 business days
Bill Singer's Comment
A common problem for RRs is the so-called "freely-tradable" stock -- which clients will swear to you is what they have and when your firm looks into the issue, they aren't so sure, or, worse, you are told that the stock is restricted or unregistered.  Always do your due diligence when confronted with this issue.
Enforcement Actions