Enforcement Actions
Financial Industry Regulatory Authority (FINRA)
CASES OF NOTE
2010
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.
January 2010
Shellie Lin Newton
AWC/2008014143701/January 2010

Registered Supervisor Newton used her position as an operations manager to misappropriate more than $10,000 from her member firm. Newton

  • entered false deposit amounts into her brokerage account at her firm, thereby creating artificial balances in the account,
  • transferred money from the brokerage account to her personal checking account, and
  • used the funds for personal purposes.

In an attempt to conceal the false deposits, Newton deposited checks into her brokerage account and made an online transfer knowing at the time that her checking account lacked funds to cover the checks, and used an ATM to intentionally enter an amount to be deposited that was greater than the check included with the deposit. By knowingly entering fictitious deposit amounts into her brokerage account at her firm, Newton created artificial balances in it and caused her firmís books and records to be false.

Shellie Lin Newton: Barred
Tags:  Operations Manager    Check    ATM     |    In: Cases of Note : FINRA
Bill Singer's Comment
I'm not understanding from FINRA's published decision how Newton "used her position as an operatons manager to misappropriate" the funds. It's clear that she made false deposits and transfers to hide her tracks, but I'm not sure that you need to be an Ops Mgr to accomplish that -- fact is, this nonsense goes on everyday.
Enforcement Actions
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