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.
Matthew Norman OíBrien AWC/2009018063001/October 2010
signed the name of a customer of his member firm on a Letter of Authorization form and then used the form to effect a transfer of $3,000 from the customerís brokerage account to OíBrienís personal bank account without the customerís knowledge or approval;
borrowed $13,000 from the customer, who was not related to OíBrien and contrary to his member firmís written procedures prohibiting its registered persons from entering into lending agreements with customers unless the customer was an immediate family member;
executed a trade in the customerís account without the customerís knowledge or consent; and
failed to respond to FINRA requests for information and documents.
Bingham gave a member firm customer $4,421 to compensate her for tax consequences incurred as a result of his recommendation that the customer liquidate a variable annuity and purchase mutual funds with the proceeds. Bingham acted without his firmís knowledge or authorization when sharing in the customerís loss, and his firmís procedures prohibited representatives from paying or offering to pay restitution to a customer. Bingham loaned customers approximately $1,050 because of delays in processing their withdrawal requests, which the firmís procedures prohibited.
Jarem Barry Bingham : Fined $10,000; Suspended 15 business days
Thomas James Sinclair AWC/2008016123101/March 2010
Registered Principal Sinclair misappropriated $17,500 from a former customerís account by fabricating Letters of Authorization (LOAs) without the customerís consent or authorization, and submitted the LOAs to his former firm and requested that the funds be wired from the former customerís account to the accounts of a current customer and friends.