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NOTE: 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 and to the entry of findings. FINANCIAL
INDUSTRY REGULATORY AUTHORITY
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Thomas Edward Sullivan AWC/2006006995901/July 2008 Sullivan participated in private securities transactions and failed to notify his member firms of his participation in the transactions. Thomas Edward Sullivan: Barred |
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Vivian Veryle Gwin AWC/20060072975-01/July 2008 Gwin participated in private securities transactions, for compensation, without prior written notice to, and written approval from, her member firm. Also, she failed to appear for a FINRA on-the-record interview. Vivian Veryle Gwin: Barred |
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Scott Burtenshaw Gordon (Principal) AWC/2006006584301/July 2008 Gordon engaged in private securities transactions, for compensation, and failed to provide prior written notice to his member firm describing the proposed transactions and his role therein, and failed to obtain his member firm’s written approval. Also, Gordon received $67,500 from public customers to invest but, instead, used themoney to fund expenses incurred in connection with the general operations of his approved outside business activity company. Scott Burtenshaw Gordon: Barred |
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Richard C. Dergance Jr. AWC/20070081647-01/July 2008 Dergance participated in private securities transactions, for compensation, without prior written notice to his member firm. Richard C. Dergance Jr.: Fined $5,000; Suspended 4 months in all capacities; Ordered to disgorge $18,541 plus interest in commissions as partial restitution to public customers. |
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James Douglas Walker OS/2006004754302/June 2008 Walker engaged in private securities transactions, for compensation, without prior written notice to, or written approval from, his member firm. James Douglas Walker: Fined $10,000; Suspended 6 months |
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Blair Christopher Mielke AWC/20060054450-05/June 2008 Mielke engaged in private securities transactions without prior written notice to, and written approval from, his member firm. Blair Christopher Mielke: Fined $5,000; Suspended 6 months |
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Wayne Allen Ritenour Jr. (Principal) AWC/2006006476901/May 2008 Ritenour engaged in a private securities transaction without prior written notice to, and approval from, his member firm. He failed to appear for a FINRA on-the-record interview. Wayne Allen Ritenour Jr.: Barred |
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Terrance Reid Pipenhagen (Principal) AWC/2006006849601/May 2008 Pipenhagen solicited individuals to invest $475,000 in commodities trading accounts he maintained and controlled. Pipenhagen lost all of the investors’ funds and sent false account statements to the investors in order to conceal their losses and to prevent them from pulling out their investments before he had a chance to recover their losses. Also, Pipenhagen engaged in private securities transactions without prior written notice to his member firm. Terrance Reid Pipenhagen: Barred |
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Nicole Yvette Allen 2006005891201/May 2008 Allen engaged in a private securities transaction without providing prior written notice to her member firm, and failed to respond to FINRA requests for information. Nicole Yvette Allen: Barred |
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John Hutchison Arnette 2005002734201/April 2008 Arnette failed to appear for FINRA on-the-record interviews, and engaged in private securities transactions without prior written notice to, and approval from, his member firm. John Hutchison Arnette: Barred |
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Dennis Wayne Sharp (Principal) AWC/2006006587101/March 2008 Sharp engaged in private securities transactions without prior notice to, and approval from, his member firm. Sharp represented to public customers that payments on promissory notes were guaranteed when he should have known that they were not guaranteed, and failed to inquire sufficiently into their status before making representations. Sharp made recommendations to public customers without reasonable grounds for believing they were suitable for the customers on the basis of facts disclosed by them as to their other security holdings, financial situation and needs. Dennis Wayne Sharp: Barred |
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Kenneth Robert Mahoney AWC/2006004140201/March 2008 Mahoney participated in private securities transactions with his member firm customers without prior written notice to, or prior written approval from, his member firm. Kenneth Robert Mahoney: Fined $49,123 (includes $44,123 in disgorgement); Suspended 6 months in all capacities. |
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John Thomas Blanchette (Principal) and Danny Ray Woosley (Principal) AWC/20060054450-03/20060054450-04/March 2008 Blanchette and Wossley engaged in private securities transactions without prior written notice to, and approval from, their member firm. John Thomas Blanchette (Principal): Fined $5,000; Suspended 20 business days Danny RayWoosley (Principal): Fined $5,000; Suspended 10 business days |
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NAME DELETED AT SOLE DISCRETION OF RRBDLAW (Principal) AWC/2007008938701/February 2008 XXX engaged in private securities transactions without prior written notice to, or prior written approval from, his member firm. XXX settled a customer complaint without his member firm 's knowledge or approval. Also, he failed to reasonably supervise a registered representative engaged in private securities transactions to prevent his violations and achieve compliance with applicable securities rules, regulations and NASD rules. NAME DELETED AT SOLE DISCRETION OF RRBDLAW: Barred |
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Joel Michael Vanderhoof (Principal) AWC/2006005194501/January 2008 Vanderhoof engaged in private securities transactions, without compensation, and provided his member firm with oral notice but failed to provide prior written notice. Joel Michael Vanderhoof: Fined $10,000; Suspended 30 days |
| Bill Singer's Comment: A fairly rare Private Securities case in which the RR actually gave notice (albeit oral) but did not wait to receive the requisite written approval. |
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Gary Dwight Sissel #2005001710701/January 2008 Sissel engaged in private securities transactions with public customers by issuing promissory notes totaling $432,500 and failed to provide written notice to his member firm. Sissel failed to repay the customers when the notes matured. Sissel failed to respond to FINRA requests for information. Gary Dwight Sissel: Barred |
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Henry Paul Nemanich (Principal) AWC/#2005003468701/January 2008 Nemanich misused public customer funds, in that he wired $2,665,000 from the bank account for a limited liability limited partnership he controlled to his personal checking account, and used the proceeds contrary to the representations made to the customers in a private placement memorandum. Nemanich participated in private securities transactions, for compensation, without prior written notice to, and prior written approval from , his member firm. Nemanich borrowed $2.8million from an elderly customer and stopped making monthly installment payments on the loan. Nemanich failed to respond to a FINRA request for documents and information. Henry Paul Nemanich (Principal): Barred |
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Daniel William Nay II AWC/#2006005034801/January 2008 Nay participated in private securities transactions, for compensation, and failed to give written notice to, and receive written approval from , his member firm prior to engaging in the transactions. Nay borrowed $40,000 from a public customer in violation of his member firm's written procedures. Nay declined to appear for a FINRA on-the-record interview. Daniel William Nay II |
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Howard Richard Gurvitch (Principal) AWC/#2007009419401/January 2008 Gurvitch referred public customers to a third-party hedge fund adviser without providing written notification to his member firm that he was participating in private securities transactions for compensation. Howard Richard Gurvitch (Principal): Fined $154,048 (includes $144,048 disgorgement of compensation received from a third-party hedge fund advisor for customer referrals); Suspended 6 months |
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Kathy Joy Gordon (Principal) AWC/#2006006081501/January 2008 Gordon engaged in private securities transactions without prior written notice to her member firm. Kathy Joy Gordon (Principal): Fined $5,000; Suspended 3 months |
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Multi-Financial Securities Corporation AWC/2006004754301/January 2008 The Firm's supervisory systems and procedures were not reasonably designed to detect and investigate the nature and extent of a registered representative's private securities transactions. The Firm failed to detect the ongoing private securities transactions, to approve or disapprove the transactions, to supervise any approved transactions and to record them on its books and records. Multi-Financial Securities Corporation: Censured; Fined $12,000 |
| Bill Singer's Comment: A most unhelpful regulatory report. Since the Private Securities Rule is predicated upon the RR's first notifying the employing BD and obtaining prior written authorization, I'm not sure exactly what it is that FINRA found to be unreasonable systems/procedures. Which is not to suggest that a BD may properly turn a deaf ear or a blind eye to apparent misconduct, but what exactly didn't this firm do that FINRA wanted it to do--or what is it that the firm did that wasn't adequate. |
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MidSouth Capital, Inc. and Mark David Hill (Principal) AWC/#2006004243001/2006003959801/January 2008 Acting through Hill, the Firm failed to supervise and record a registered representative's private securities transaction activities in the manner NASD Rule 3040(c) required. The Firm failed to record private securities transactions on its books and records and failed to report municipal securities transactions within the time period MSRB Rule G-14 prescribed. The Firm failed to adopt, maintain and enforce written supervisory procedures reasonably designed to achieve compliance with its trade reporting obligations under MSRB Rule G-14. MidSouth Capital, Inc.: Fined $40,000 ($25,000 jt/sev with Hill); Suspended 6 months from approving any private securities transactions involving a hedge fund and/or a private investment partnership formed and/or managed by a firm representative registered with FINRA. Mark David Hill (Principal): Fined $25,000 jt/sev with Midsouth; Suspended 20 days in Principal capacity. |
| Bill Singer's Comment: Another hefty suspension against a member firm. Clearly, FINRA has come out swinging. See Loeb case immediately below. |
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