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.
Patrick Francis Harte Jr. (Principal) 2006003672401/December 2009
Harte failed to supervise registered representatives who engaged in the sale of unregistered securities. Harte failed to take adequate measures to ensure that the registered representatives and employees he supervised complied with the requirements of Section 5 of the Securities Act.
Patrick Francis Harte Jr. (Principal): Fined $10,000; Suspended 6 months in Principal capacity only; and Ordered to requalify as a Principal before functioning in any principal capacity
Peter Herbert Hackstedde and Ross William Sindelar OS/2006004707201/December 2009
Hackstedde and Sindelar acquired unregistered and non-exempt shares from an issuer with a view to distribution and, therefore were statutory underwriters. They distributed,or caused the distribution of, unregistered and non-exempt securities to the public.
Peter Herbert Hackstedde: Fined $301,896.93 (includes $286,896.93 disgorgement of profits) Suspended 30 business days in all capacities Ross William Sindelar: Fined $418,904.91 (includes $$403,904.91 disgorgement of profits) Suspended 30 business days in all capacities
Alan Frank Pacella AWC/2007009934702/November 2009
Pacella participated in the sale of unregistered securities. Before entering sales orders, Pacella relied on his member firmís compliance department to review whether the shares were freely tradable. The compliance department conducted its tradability review in the ordinary course of business and incorrectly approved the securities for public resale, even though the shares were restricted. Pacella had or should have had the companyís Articles of Incorporation and press release, thereby allowing him to determine that the securities were not registered for public sale and not subject to an exemption.
The SEC charged 15 broker-dealers with violating certain recordkeeping provisions of the Securities Exchange Act and with failing reasonably to supervise with a view to preventing and detecting those violations. Additionally, the SEC charged affiliated advisor DWS Investment Management Americas, Inc. with violating certain recordkeeping provisions... Read On