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.
February 2010
Michael James Jorgensen (Principal)
2008014433601/February 2010
Jorgensen posted comments regarding a competitor insurance company’s stock on an Internet message board without written approval from a principal of his member firm. Jorgensen made a recommendation to sell the insurance company’s stock in his advertisement on the Internet board without disclosing that he had a financial interest in the securities. His posts omitted material information, which caused the communications to be misleading, and failed to disclose that he owned puts on the company.
Michael James Jorgensen (Principal): Fined $25,000; Suspended 60 days in all capacities
Tags:  Internet     |    In: Cases of Note : FINRA
Bill Singer's Comment
Few issues set more blood aboilin' than registered persons' rights to communicate on the Internet.  However, here is a perfect example of when FINRA's policing of such practices seems appropriate. 

Do I have a problem with Jorgenson slamming the competition?  Not really -- seems to me that many television commercials for some of the big boys do that through implication or inference. 

Do I have a problem with him "recommending" the sell of his competitor's stock? Again, not a major issue since I see that many national brokerage firms maintain large research departments and frequently issue up- and down-grades on other brokerage firms and financial institutions.

If I have a problem, it's that an industry professional should at least disclose such a material conflict of interest as being long or short whatever he or she is touting or bashing. 
Enforcement Actions