Enforcement Actions
Financial Industry Regulatory Authority (FINRA)
CASES OF NOTE
2009
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
James Frederick Henjum
AWC/2007009449501/December 2009
Henjum guaranteed a customer against trading losses without the customerís or his member firmís prior written authorization. Henjum reimbursed the customer approximately $19,200 from his personal funds for trading losses incurred.
James Frederick Henjum: Fined $5,000; Suspended 20 business days
Bill Singer's Comment
In these tough days, RRs are tempted to take a few bucks out of their own pockets to placate unhappy clients -- or to guarantee against losses (if you would just give me another chance, I promise, this tip is going to pan out, and I'm so sure of it that I will personally reimburse you if you suffer one cent of loss).  Unfortunately, you can't offer such pay-offs or reimbursements without getting the arrangement in writing and having your firm sign-off on the proposal. 

See this page http://www.rrbdlaw.com/RegulatoryLinks/undsettl/index.htm  for more details on these types of cases.
Enforcement Actions
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