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
Peter Christian Dunne
OS/2007011937002/December 2009
Dunne posted electronic messages on an Internet message board concerning a company which constituted advertisements on his member firmís behalf. Dunne posted the advertisements without a registered principalís prior approval and none of the advertisements named the firm or reflected Dunneís relationship with the firm.

The advertisements constituted purchase recommendations for the company and
  • failed to provide, or offer to furnish upon request, available investment information supporting each recommendation;
  • failed to disclose that
    • Dunneís firm was a market maker in the company;
    • that the firm and/or its officers or partners had a financial interest in the company,
    • the nature of the financial interest; and
  • failed to provide a fair and balanced assessment, referring only to the companyís upside without any disclosure of the risks.
Dunne opened securities brokerage accounts at other firms, failed to notify the firms in writing that he was associated with other firms, and failed to notify his member firms in writing that he opened accounts at other firms.Dunne falsely represented to his member firms that he had no outside brokerage accounts and did not use or participate in chat rooms,message boards or other unapproved electronic communications.
Peter Christian Dunne: Fined $25,000; Suspended 1 year
Tags:  Electronic Communications    Internet    Away Accounts     |    In: Cases of Note : FINRA
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