RRBDLAW.COM

INDEX PAGE ONLINE BIOGRAPHY EMAIL RRBDLAW.COM



NOTE: Stipulation of Facts and Consent to Penalty (SFC), Offers of Settlement (OS) and Letters of Acceptance, Waiver, nd 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.

2004
OUTSIDE BUSINESS ACTIVITIES/PRIVATE SECURITIES TRANSACTIONS

STANDARD DESCRIPTION KEY
Engaged in business activities outside the scope of  employment with member firm and failed to provide prompt written notice to member firm OB
Participated in outside business activity, for compensation, without providing prior written notice to member firm OB$
Participated in private securities transactions without providing prior written notice to his member firm. PS

Read the SEC appeals of private securities transaction cases:

 

 

Gary Philip Ruchwarge
(AWC/C3A040042/December 2004)

OB; and received $38,375 from public customers of his member firm and used the funds for his own personal benefit
Gary Philip Ruchwarge

Barred; Ordered to pay restitution to public customers in the amount of $38,375.

 

 

Joseph James Vastano, Jr.
(C3A020013/December 2004)
 SEC Decision on appeal from NASD

PS
Joseph James Vastano, Jr.

Fined $62,000; Suspended 18 months in all capacities

SEC imposed final sanction following an appeal of a NAC decision.

 

Timothy Booth Watkins
(AWC/C04040046/December 2004)

Watkins sold fixed annuities outside of the scope of his relationship with his member firm and received $154,887 in commissions from these sales without providing prompt written notice to his member firm of the sales and commissions. 
Timothy Booth Watkins

Fined $7,500; Suspended 6 months in all capacities

 


Alex Roytman 
(OS/C10040087/December 2004)

PS; Roytman failed to provide truthful and accurate information to NASD during an on-the-record interview and failed to disclose a material fact on his Form U4. 
Alex Roytman 

Fined $25,000; Suspended 2 years in all capacities

 

 

Robert Mendoza and Gary Steven Wood 
(OS/C01040022/December 2004)

Mendoza and Wood did not provide written notice to nor receive written permission from their member firms to participate in securities transactions outside the regular scope of their association with their member firms. Mendoza participated in collecting approximately $2.8 million from investors and received more than $150,000 in compensation; and Wood participated in collecting approximate $9.7 million from investors and received more than $1.1 million in compensation.
Robert Mendoza and Gary Steven Wood

Barred

 

 

Robert Crandall Jones  
(AWC/C04040048/December 2004)

Jones provided income tax preparation services to public customers for a fee outside of the scope of his relationship with his member firm, and failed to provide prompt written notice of this outside business activity to his member firms. 
Robert Crandall Jones 

Fined $5,000; Suspended 10 business days in all capacities

 

 

 

Donald Everett Hunt, Jr. 
(C06040018/December 2004)

PS
Donald Everett Hunt, Jr. 

Fined $10,000; Suspended 3 months in all capacities

 

 

Justin Wallace Herman 
(AWC/C07040083/December 2004)

Herman 

  1. established securities accounts with an NASD member, but failed to promptly advise the member firm that he became associated with another NASD member firm;

  2. participated in a private securities transaction through the sale of $293,000 in equity securities to investors without giving his member firm prior written notice of his intent to engage in such transactions and without receiving approval for his participation in these transactions; and

  3. drew a check from a customer account of a family member that was made payable to another family member and caused the check to be deposited in the second family member’s bank account without the knowledge or authorization of the customer (first family member). 
Justin Wallace Herman 

No fine because of financial status; Suspended 12 months in all capacities; Ordered to pay $100,000 (plus interest) restitution to public customers

 

 

Michael Joseph Gorman, Jr. 
(AWC/C9B040091/December 2004)

Gorman failed to supervise an employee who engaged in outside business activities and failed to ensure that the representative provided prompt written notification of these activities to his member firm.
Michael Joseph Gorman, Jr. 

Fined $5,000; Suspended 15 days in principal/supervisory capacities

 

 

Gregory Leonard Felden 
(AWC/C11040037/December 2004)

PS
Gregory Leonard Felden 

Fined $5,000; Suspended 30 days in all capacities

 

 

Christopher Robin Van Dyk 
(C3B020013/November 2004)

PS; failed to timely respond to NASD requests for information
Christopher Robin Van Dyk 

Barred

The NAC imposed the sanction following call for review of an OHO decision by the NAC. 

 

David William Trende 
(AWC/C8A040081/November 2004)

PS
David William Trende 

Fined $5,000; Suspended 6 months in all capacities. 

 

 

Edmund Anthony Palmieri, Jr.
(AWC/C9B040088/November 2004)

OB 
Edmund Anthony Palmieri, Jr.

Fined $5,000; Suspended 30 days in all capacities. 

 

 

Hardat Mahadeo 
(OS/C10040045/November 2004)

PS; failed to amend his Form U4 to disclose material information. 
Hardat Mahadeo 

Fined $7,500; Suspended 6 weeks in all capacities


Barred
 

 

Donald Joe Godwin 
(C07040038/November 2004)

OB; failed to respond to NASD requests for information. 
Donald Joe Godwin 


Barred
 

 

Alfredo Diaz 
(AWC/C9B040087/November 2004)

Diaz failed to supervise an individual that he knew was engaged in outside business activities and failed to ensure that the individual provide prompt written notice of his activities to their member firm. 
Alfredo Diaz 


Fined $5,000; Suspended 15 days in principal/supervisory capacity

Bill Singer's Comment:

One of the rare cases of "failure to supervise" reported in this area.

 

David Walter Coyman
(AWC/C9B040089/November 2004)

PS
David Walter Coyman


Fined $5,000; Ordered to disgorge $15,000 in commissions in partial restitution to public customers; Suspended 6 months in all capacities
 

 

Edward Lee Sensor
(C8A040010/October 2004)

PS; OB; and Failed to respond to NASD requests for information. 
Edward Lee Sensor


Barred 
 

 

NAME DELETED BY RRBDLAW.COM
(AWC/xx/October 2004)

OB
NAME DELETED BY RRBDLAW.COM


Barred 
 

 

Rick Christopher Siskey
(AWC/C07040075/October 2004)

PS
Rick Christopher Siskey


Fined $10,000; Suspended 2 years in all capacities.  
 

 

Ronald Dean Wightman
(OS/C02040016/October 2004)

Wightman failed to supervise a registered representative in a manner reasonably designed to achieve compliance with NASD Rule 3040 (Private Securities Transaction).
Ronald Dean Wightman


Fined $10,000; Suspended 30 business days in all capacities.  

Bill Singer's Comment:

One of the rare cases of "failure to supervise" reported in this area.

 

 RICHARD L. ERB, II 
(SFC/HPD 04-164/October 2004)

In late 2001, Richard L. Erb, II, a registered representative with Morgan Stanley Dean Witter (the “Firm”), learned that acquaintances of his were promoting a hotel investment venture. Around this time, one of the promoters contacted Erb and requested that Erb and his father, a consultant in the hotel industry, travel to Ohio to evaluate a piece of property (the “property”) that the promoters were considering purchasing for the Business. In early 2002, Erb, accompanied by his father and brother, inspected the property (they also inspected another nearby property, which would be considered the chief competitor for the Business’ hotel venture, should the Business purchase the property.  After the trip to Ohio and at the request of the promoters, the Erbs compiled a list of recommendations regarding the property which included his suggestions about potential renovations to the property and the conversion of a neighboring site into a convention facility. As payment for their evaluation of the property, the Erbs received a check from the Business in the amount of $3,000 which Erb cashed since he expected that $1,000 was to be his compensation. Later, Erb was contacted by one of the promoters who informed Erb that the promoters of the Business had decided to purchase the Ohio property and inquired whether Erb knew of any person(s) interested in putting up the escrow funds for the purchase of the property.

In late 2000, a customer (the “Customer”) --- who was an acquaintance of Erb’s father and Erb had known since his childhood --- opened two accounts at the Firm with Erb. In 2001 the Customer had been informed by his physician that he was suffering from dementia and/or the early stages of Alzheimer’s disease and that he should get his financial affairs in order. In June 2001, the Customer granted power of attorney to his sister. In November 2002, the Customer and his sister completed and submitted Trading Authorization documents to the Firm to permit the Customer’s sister to manage the Customer’s accounts at the Firm. Additionally, a “Trading Authorization Transmittal/Control” form was filled out stating the reason for the Authorization was that the Customer “is suffering from dementia.” According to that form, the Customer’s net worth was $750,000.

In June 2002, Erb arranged for the Customer, then aged 81 and suffering from dementia, to place $125,000 from the Customer’s account at the Firm into an escrow account for the benefit of the Business. At that time, the funds in the account in question were almost entirely concentrated in highly rated tax-free municipal bonds.  The authorization for this transfer of funds via certified check from the Customer’s accounts to the Business was a letter dated June 10, 2002 purportedly signed by the Customer. However, on that date the Customer was living in a 24-hour care facility 4 due to the fact that his mental condition had deteriorated to the point where he was unable to take care of his basic daily needs. Sometime after receiving the June 2002 statement for the Customer’s account, the Customer’s sister became aware of the $125,000 debit and contacted the Firm to request an explanation. 

The Firm initiated an investigation into the matter and discovered that without gaining prior approval from the power of attorney for the account, Erb had facilitated the Customer’s investment in the Business venture. The Firm subsequently filed a civil complaint against the Business and the funds were returned to the customer. 

The NYSE found that Erb:

I. Violated Exchange Rule 346(b), in that he engaged in outside business and/or received compensation for such outside business without prior written consent from his member firm employer; 

II. Engaged in conduct inconsistent with just and equitable principles of trade in that he effected a transaction in a customer’s account which was unsuitable in light of the customer’s age, mental status and investment objectives; and

III. Caused a violation of Exchange Rule 401 by failing to adhere to principles of good business practice in that he removed $125,000 for an investment outside of the Firm from the account of a customer who lacked the mental capabilities to appreciate the risk of the investment without first discussing the matter with the designated power of attorney for the account. 

 RICHARD L. ERB, II 

Censured; Barred 2 years in all capacities.

Bill Singer's Comment:

Another NYSE decision and, again, frankly, I'm puzzled.  After reading the fact pattern I would have expected a fine and a more extensive term for the bar.  I find myself frequently describing recent NYSE decisions as indicating either a case of great lawyering by the respondent's counsel or the NYSE loaded up this fact pattern to make the case seem far worse than it apparently was.

 

 

 

Craig Poy Lee 
(AWC/C8A040073/October 2004)

OB$
Craig Poy Lee 

Fined $5,000; Suspended 10 business days in all capacities

 

 

Craig Poy Lee 
(OS/C8A040065/October 2004)

PS; and failed to respond to requests for information by NASD
Craig Poy Lee 

Barred

 

 

Thomas Michael Keating, Jr.
(AWC/C8A040076/October 2004)

OB$
Thomas Michael Keating, Jr.

Fined $5,000; Suspended 10 business days all capacities.

 

 

James William Dreos
(C3A040017/October 2004)

PS
James William Dreos

Fined $20,000; Suspended 6 months in all capacities

 

 

Charles Albert Small
(AWC/C01040021/September 2004)

PS$; Failed to respond to NASD requests for information
Charles Albert Small

Fined $50,000 (including $12,000 in disgorgement of commissions received); Suspended 2 years in all capacities

 

 

Andrew Alan Neff 
(AWC/C07040009/September 2004)

PS; Failed to respond to NASD requests for information
Andrew Alan Neff 

Barred

 

 

John W. McDonnell
(AWC/C9A040025/September 2004)

OB$
John W. McDonnell

Fined $5,000; Suspended 3 months in all capacities

 

 

Trevor Kene Litherland
(AWC/C8A040063/September 2004)

OB
Trevor Kene Litherland

Fined $5,000; Suspended 15 days in all capacities

 

 

Rodney H. Lankford
(AWC/C05040061/September 2004)

PS; used the means or instrumentalities of interstate commerce to solicit the purchase of a security, when no registration statement was in effect for the security.

Rodney H. Lankford

Fined $5,000; Suspended 3 months in all capacities

 

 

Larry Hiroyuki Goto
(OS/C01040011/September 2004)

PS

Larry Hiroyuki Goto

Barred

 

 

Mitchell Todd Galloway
(C06040003/September 2004)

OB; Unsuitable recommendation to a public customer;Failed to respond to NASD requests for information.  

Mitchell Todd Galloway

Barred

 

 

Jason Wayne Collard
(AWC/C05040050/September 2004)

OB

Jason Wayne Collard

Fined $12,500; Ordered to disgorge $16,675 in partial restitution to public customers; Suspended 2 years in all capacities

 


Robert Mark Benning
(AWC/C8A040067/September 2004)

PS (selling telephone leases to public customer)
Robert Mark Benning

Fined $7,500; Suspended 45 days in all capacities

 

 

John Thomas Archer
(C02020057/September 2004)

Archer fraudulently offered and sold unregistered securities in the form of promissory notes by failing to disclose material adverse information concerning the issuer, and failed to obtain prior written approval from his member firm before selling the promissory notes. The findings also stated that Archer acted as a broker by effecting transactions in the accounts of others without the benefit of registration required by Section 15 of the Securities Exchange Act.)
John Thomas Archer

Barred

 

 

Michael James Rogers
(OS/C01040014/August 2004)

PS; Failed to respond to NASD requests for information and documentation
Michael James Rogers

Barred 
 

 

Richard Allan Finger
(AWC/C3A040032/August 2004)

PS
Richard Allan Finger

Fined $5,000; Suspended 20 business days all capacities 
 

 

Rafael Enricque Febus, Sr.  
(AWC/C10040069/August 2004)

PS; intentionally and/or recklessly misrepresented and omitted material facts concerning securities, including guaranteed monthly interest payments and overall value of the securities as a good investment when soliciting sales of securities to public customers. Failed to respond to NASD requests for information. 
Rafael Enricque Febus, Sr.

Barred 

 

 

Clayton Dale Farrell
 (AWC/C05040048/August 2004)

OB; Farrell improperly obtained $9,000 from his member firm and another employer by requesting payment of expenses for which he had already been reimbursed. 
Clayton Dale Farrell

Barred 

 

 

James Parker Billington
(OS/C3B040017/August 2004)
PS
James Parker Billington

Fined $10,000; Suspended 9 months all capacities

 

 

Randy Lee Beltramea
(AWC/C04040032/August 2004)

PS; failed to respond to NASD requests for information. 
Randy Lee Beltramea

Barred

 

 

Danny Robert Baxley
(OS/C07040031/August 2004)
PS
Danny Robert Baxley

Fined $15,000; Suspended 6 months all capacities

 

 

James Isaac Barrick, III
(C8A030034/August 2004)
OB; failed to respond to an NASD request to appear for an on-the-record interview. 
James Isaac Barrick, III

Fined $33,820; Barred

 

 

CHRISTOPHER T. NORMAN
(SFC/HPD 04-126/July 2004)

While in the employ of Gruntal & Co., LLC (the “Firm”), registered representative Norman learned about a company engaged in a pay telephone lease program (the “Company”) by reading a magazine. Norman was interested in pursuing this business outside the Firm, and, accordingly, began to solicit Firm customers without receiving prior approval from the Firm.  He solicited two customers to invest in the pay phone equipment lease program. While employed at the Firm, Norman was required to complete an annual compliance questionnaire which asked if the employee currently received any compensation outside of the Firm or its subsidiaries. Norman responded “No,” which constitutes a misstatement to the Firm. 

In a complaint filed on September 30, 2000, the SEC sought a permanent injunction against the Company and its president for engaging in fraud in the offer and sales of unregistered securities in the form of investment contracts.  The two customers subsequently sustained losses in their investments. 

 Customer M opened an IRA account with the Firm and Norman in approximately April 1998. In 1998, Customer M was 42 years old, married, and listed growth as his investment objective. In February 2000, Norman recommended that Customer M invest in pay telephones. He informed Customer M that such an investment would be conservative and guaranteed Customer M a 14% return on his $154,000 investment, as the sales literature represented. 

Acting upon Norman’s recommendations and representations, Customer M liquidated certain positions in his Firm IRA account at the Firm in the amount of $154,050.50 3 and, on March 9, 2000, re-invested the proceeds for the purchase of 22 payphones units at $7,000 per unit for a total amount of $154,000 through a payphone equipment lease program offered by the Company. Of the options available, Customer M chose to receive $82 per month from each of his units purchased.  Norman facilitated Customer M’s purchase and earned a commission from the sale.  Customer M received payments from the Company until it filed for bankruptcy in December 2000, at which time his fixed monthly payments of 14% ceased and the remainder of his $154,000 investment was frozen.
Customer K opened an account with Norman at the Firm in September 1998. Customer K was retired, 86 years old, earned less than $24,999 per year and was an inexperienced investor.  In approximately November 1999, Norman recommended that Customer K invest in the pay telephone industry. Norman recommended and Customer K bought 44 pay telephones for a total of $308,000 from the Company. Customer K funded the investment by withdrawing the money from an annuity he had at the Firm. Customer K received payments until December 2000 when the Company filed for bankruptcy, at which time his fixed monthly payments of 14% ceased and the remainder of his $308,000 investment was frozen. 

The NYSE found that Norman:

I. Violated Exchange Rule 346 (b) by engaging in an outside business activity without making a written request and receiving the prior written consent of his member organization employer; and

II. Engaged in conduct inconsistent with just and equitable principles of trade in that he: solicited customers to participate in an investment strategy which was later found to be part of a fraudulent scheme involving the sale of unregistered securities in the form of investment contracts without his member organization employer’s knowledge; solicited customers to invest in an unapproved business away from his member organization employer; effected transactions in the account of one customer of his member organization employer which was unsuitable in view of the customer’s investment objectives and financial circumstances; and made misstatements to his member organization employer.

CHRISTOPHER T. NORMAN

Censure; Bar for 12 months in all capacities

Bill Singer's Comment:

Frankly, I'm surprised the NYSE only imposed a 12 month bar.  Nonetheless, a word to the wise.  One, don't get involved in any investment based solely upon what you read in a magazine.  Two, it's rarely advisable to put an 86 year old retiree into any investment funded by an annuity.

 

 

ROBERT THOMAS MORTIMER JR.
(SFC/HPD 04-124/July 2004)

At all relevant times, Robert Thomas Mortimer, Jr., was the branch office manager of the Oakbrook Terrace, Illinois office (the Branch) of RBC Dain Rausher Inc (the Firm).  During the period 1999-2000, Mortimer was responsible for the supervision of Russell, an RR employed by the Firm. 

At all relevant times, Mortimer was required as a supervisor, in accordance with Firm procedures, to review monthly account activity for all employees, including Russell, who were under his supervision. During the period relevant herein, Mortimer failed to adequately review, in a manner adequate for supervisory purposes, Russell’s account statements and the checks coming into and going out of his accounts for the period referred to above. As a result, Mortimer did not detect that Russell had received customer funds and commingled such funds with his own funds in accounts at the Firm. Additionally, after learning that Russell was engaged in an outside business that was not approved, Mortimer did not subsequently follow-up in order to assure that Russell ceased work on the unapproved outside business. 

Mortimer violated Exchange Rule 342 by failing to reasonably discharge his duties and obligations in connection with the supervision and control of an employee who was subject to his control.

In the Matter of Ralph William Russell 
(NYSE Hearing Panel Decision 04-77 May 12, 2004)

During the Fall of 1999, without the knowledge or approval of the Firm, Russell began work on an outside business involving the creation of an investing/finance website. By early 2000, he had discussed the proposed website with various friends and customers of the Firm, a number of which had expressed interest in investing. Soon thereafter, investors sent Russell checks payable to him (ranging in amounts between $5,000 and $50,000 each), which he deposited into certain personal securities accounts that he and/or his wife maintained at the Firm. 

In or about early August 2000, Russell advised Mortimer about his work on the website project and then sought approval from the Firm to engage in that outside business. The request was not approved but Russell continued to work on the website venture and continued to solicit funds for the venture from customers of the Firm. 

Russell was found, on consent, to have violated NYSE Rule 346(b) during 1999-2000 by engaging in an outside business activity without making a written request to, and obtaining the prior written consent of, his member firm employer. He also engaged in conduct inconsistent with just and equitable principles of trade by commingling customer funds obtained in connection with such outside business activity with his own funds, wrongfully spending such funds for purposes other than such outside business, and making a misstatement to his member firm employer in connection with his participation in the aforementioned outside business activity. 


Russell received a censure and a five year bar.  

 
ROBERT THOMAS MORTIMER JR.

Censure; Supervisory bar for 3 months

Bill Singer's Comment:

A fascinating case that perfectly highlights the cascade effect of in-house supervisory lapses.  We start off with the seemingly benign desire to develop a website.  In and of itself that might not have been sufficient to be deemed an outside business, but the simple fact that a registered person is putting investment-related content on the Internet should have put Russell on notice that he was treading on thin ice.  Talking to outside parties and customers about "investing" should have set off another round of alarms.  Not only is he moving into an outside business activity but also into a private securities transaction.  Further, you should almost never commingle funds from a business with any personal accounts.  Finally, putting the cart before the horse, Russell waits until the end to get approval for the outside venture and proceeds with it despite being denied approval by his firm.

Frankly, what was Mortimer supposed to do and know --- I'm not sure the NYSE has made its case in persuading me.  If one carefully reads the NYSE's report, the Staff suggests that he should have detected the commingling of business and personal funds.  I'm not sure that's a fair burden to place on any branch manager.  If the NYSE alleged that there was some clear indication of funds coming from customers, that's another issue (and one which the decision should have noted).  However, the mere fact that there are deposits coming into accounts owned by Russell and/or his wife wouldn't necessarily send up flares.  On the other hand, Mortimer certainly should have ensured that Russell had ceased engaging in the website business after he requested permission to maintain the business.  

 

Curtis Larry Williams, Jr.
(C05030010/July 2004)
PS; and Williams misused customer funds by depositing customer checks totaling $84,300 into his personal bank account and later investing the funds in his name. 
Curtis Larry Williams, Jr.

No fine in light of financial status; Suspended 2 years in all capacities

 

 

Michael Gerald Teslow
(AWC/C01040015/July 2004)

OB$ 
Michael Gerald Teslow

Fined $10,000; Suspended 6 months in all capacities

 

 

Jeffrey Lynn Watt
(AWC/C05040031/July 2004)
PS
Jeffrey Lynn Watt

Fined $5,000; Required to pay $20,000 in disgorgement in partial restitution to a public customer; Suspended 18 months in all capacities

 

 

Michael Gerald Teslow
(AWC/C01040015/July 2004)
OB
Michael Gerald Teslow

Fined $2,500; Suspended 3 months in all capacities

 

 

Eugene Franklin Ritter 
(AWC/C01040015/July 2004)
OB in that he participated in the sale of an investment contract and a security without providing notification to his member firm.

Eugene Franklin Ritter 

Fined $5,000; Suspended 4 months in all capacities

 

 

Michael Henry Pigott  and Travis Michael Pigott
(AWC/C3B040016/July 2004)
PS; and shared, directly or indirectly, in the profits or losses in the accounts of public customers without prior written authorization from their member firm. They opened securities accounts at other member firms and placed orders with the firms for the purchase and sale of securities and, prior to the opening of the accounts or placing initial orders with the firms, they failed to notify their member firm in writing regarding the accounts.
Michael Henry Pigott  

Barred in all capacities

Travis Michael Pigott

No fine in light of financial status; Suspended 1 year in all capacities

 

 

Chris Allen Nelson 
(AWC/C04040025/July 2004)
OB$
Chris Allen Nelson 

Fined $2,500; Suspended 2 months in all capacities

 

 

James Kulow
(AWC/C3A040027/July 2004)

 PS
James Kulow

Fined $7,500; Suspended 6 months in all capacities

 

 

Mark Horace Love
(C3A010009/July 2004)

 PS
Mark Horace Love

Fined $25,000; Suspended 30 business days in all capacities per SEC affirmation following appeal from NAC.

Read the SEC Love case

 

Howard Alan Feinstein
(OS/C8A030091/July 2004)

 PS
Howard Alan Feinstein

$19,530.60 in restitution ($14,530.60 in disgorgement of commissions, and a $5,000 fine); Suspended 6 months in all capacities

 

 

William Elliston Hopkins 
(AWC/C05040030/July 2004)

PS
William Elliston Hopkins 

Fined $5,000; Required to pay $43,000 in disgorgement in partial restitution to a public customer; Suspended 2 years in all capacities 

 

 

Paulette Rae Jensen
(AWC/C04040026/July 2004)

OB
Paulette Rae Jensen

Fined $7.500; Suspended 10 business days all capacities

 

 

Joseph Lee Digman
(AWC/C3B040014/July 2004)

PS
Joseph Lee Digman

No fine in light of financial status; Suspended 6 months in all capacities

 

 
 

William Michael Deegan
(C3A030046/July 2004)

OB and failed to respond to NASD requests to appear for an on-the-record interview and to respond completely to an NASD request for information. 
William Michael Deegan

Barred

 

 
 

Earl H. Dangelmaier 
(AWC/C3B040018/July 2004)

PS
Earl H. Dangelmaier

Barred

 

 
 

Mary Terry Councilman 
(AWC/C07040052)/July 2004)

Outside the scope of her employment with her member firms, Councilman recommended and sold investments in payphones and promissory notes to a public customer without providing prior written notice to, or receiving prior written permission from, her member firms. Further, she falsely told the customer that a company was a financially stable company with a long track record when the company was merely a bank checking account that she had opened to receive and disburse funds she solicited for investment with third parties. To induce the sale of the promissory note to the customer, Councilman falsely told the customer that his funds were safe when, in fact, she had a reason to believe otherwise; falsely told the customer that his investment was guaranteed when, in fact, it was not guaranteed; failed to disclose to the customer that his funds had been invested in high-risk investments with third parties; and failed to conduct a reasonable independent investigation to determine the potential risks of the proposed investment and thereby failed to have a reasonable basis for determining the suitability of the investment and for recommending it to the customer.
Mary Terry Councilman 

Barre

 

 
 

Perrin Fitzgerald Burse
(C8B030023/July 2004)

PS; Burse recommended unsuitable transactions to a public customer without having a reasonable basis for believing that his recommendations were suitable for the customer, and forged a customer's signature on a client agreement. He also failed to respond to NASD requests for information. 
Perrin Fitzgerald Burse

Barred

 

 
 

Kenneth John Bungarda 
(AWC/C02040018/July 2004)
OB;  Also prepared a letter stating that a commodities firm need not send duplicate statements to his member firm and signed the name of his supervisor (without authorization) who was not aware of the letter. 
Kenneth John Bungarda 

Barred

 

 
 

Louis William Bedinotti 
(AWC/C10040049/July 2004)
PS; and made material misrepresentations and omitted material information in connection with the private offering and sale of unregistered securities in the private securities transaction. 
Louis William Bedinotti 

Barred; Ordered to pay $10,000 plus interest in restitution to a public customer.

 

 
 

Phillip Michael Atwell   
(AWC/C8A040045/July 2004)
PS

 

Phillip Michael Atwell Sr. 

Fined $5,000; Suspended 70 days in all capacities (60 days credit for time served in State of Illinois case based on same incident).

 

 
 

RALPH WILLIAM RUSSELL
(SFC/HPD 04-77/May 2004)
During the Fall of 1999,  Ralph William Russell (“Russell”)  without the knowledge or approval of RBC Dain Rauscher Inc. (the “Firm”), began working on the creation of a website relating to investing and finance. Income from the website was to come from, among other things, subscription fees and advertising sales.  By early 2000, Russell had discussed the proposed website with various friends and customers of the Firm, a number of which had expressed interest in investing. He had also mailed the business plan to a number of such individuals.

Soon thereafter, Russell received funds in checks payable to Russell (ranging in amounts between $5,000 and $50,000 each) from a number of investors. Upon receipt of the funds from the investors, Russell deposited such funds into certain personal securities accounts that he and/or his wife maintained at the Firm, thereby commingling investor funds with his personal funds.

On June 8, 2000, Russell formed a corporation whose purpose was to own and operate the business of ralphrussell.com. Russell subsequently opened an account at the Firm in the name of his corporation. On or about June 16, 2000, Russell made the first of what would be four payments totaling $45,000 to his website designer.  

On or about August 8, 2000, Russell sought approval from the Firm to engage in an outside business venture involving the website, but the request was never approved. Nonetheless, Russell continued to work on the website venture and continued to solicit funds from customers of the Firm. 

On or about September 11, 2000, Russell completed and signed a Firm compliance questionnaire,which asked, among other things, whether Russell had conducted any non-Firm activities from the Firm’s offices or raised capital for any entity outside the scope of the Firm’s business. Russell falsely answered "no." By October 2000, nine individuals (8 of whom were Firm customers) invested with Russell a total of $133,000 in the website venture. On one or more occasions, Russell expended funds raised from the investors for purposes other than the website venture. In or about October 2000, the Firm discovered Russell’s misconduct as set forth above and terminated him on November 10, 2000. 

During 2001, Russell reimbursed the investors with respect to all of the funds that they had invested with him.

The NYSE found that Russell:

I. Violated Exchange Rule 346(b) by engaging in an outside business activity without making a written request and obtaining the prior written consent of his member firm employer. 

II. Engaged in conduct inconsistent with just and equitable principles of trade by commingling customer funds obtained in connection with an unauthorized outside business activity with his own funds; wrongfully spending funds obtained in connection with an unauthorized outside business activity for purposes other than such outside business; and making a misstatement to his member firm employer in connection with his participation in an unauthorized outside business activity.

RALPH WILLIAM RUSSELL

Censure and 5 year Bar in all capacities. 

Bill Singer's Comments

A very harsh sanction but one likely resulting more from the "No" answer on the questionnaire than the private securities trades or commingling.

 
 

MARK DAVID LEAVITT
(SFC/HPD 04-72/May 2004)
Mark David Leavitt a former registered representative with Merrill Lynch, Pierce, Fenner and Smith, Inc. (the “Firm”) recommended to customers at the Firm unsuitable investments in two over-the-counter billboard stocks, XYZ and UVM, and made untrue statements of fact to customer, with regard to these two securities. 

At all relevant times, UVM was traded on the pick sheets and the OTC bulletin board. For the fiscal year ended December 31, 1999, UVM reported a net operating loss of $1.67 million. For the first quarter of 2000, UVM reported a net operating loss of approximately $500,000, UVM has not filed any financial reports subsequent to the period ending March 2000. As of March 2000, there were approximately 13.2 million shares of UVM issued and outstanding. During the period 1999-2000, there was no rating for UVM. 

At all relevant times, XYZ was traded on the pink sheets and the OTC bulletin board.  At all relevant times, XYZ was a company that engaged in direct merchandising of American themed collectibles, gifts and memorabilia.  From March 1999 through fiscal year ending December 31, 2000, XYZ reported cumulative revenues of $3,045,467, a cumulative operating loss of $901,139 and cumulative net loss of $549,635. XYZ has not filed any financial reports subsequent to the period ending December 2001. The XYZ prospectus stated that there were risks associated with investments in XYZ, including its limited operating history, and the difficulties in the early stages of business development. The prospectus also stated that because of the unpredictability of future revenues, fluctuations in operating results, rapid technological changes and other reasons, investors should consider all risks carefully prior to investing. 

Customers B and LR (the “Rs”) opened accounts with Leavitt at the Firm some time in 1995.  The new account form (“NAF”) for the Rs joint account stated that they had investment objective of growth, with a “moderate” risk tolerance. The NAF for the R joint account also indicated a net worth of between $250,000 and $500,000.  Leavitt misrepresented the risks associated with the XYZ and UVM transactions to the Rs. Leavitt never informed them of the speculative nature of the securities, and based on statements made to them by Leavitt, the Rs believed that the investments were without significant risk.  In total, 6,000 shares of UVM were purchased in the Rs accounts, in April and September 1999, at a cost to the account of approximately $100,000. In addition, 25,000 shares of XYZ were purchased away from the Firm, and were transferred into the Rs account, resulting in losses to the Rs of approximately $32,000. 
Customer JT transferred his Individual Retirement Account (“IRA”) to Leavitt and the Firm, some time in August 1998. The NAF for the JT IRA state investment objectives of  growth with a risk tolerance of moderate, and an annual income of $125,000.  Leavitt never informed JT of the speculative nature of the UVM and XYZ purchases, and consistently assured JT of the safety of the investments.  At Leavitt’s request, at a meeting with representatives of the Firm some time in early 2001, JT informed the Firm that purchases were “unsolicited”, when in fact they were not. Leavitt asked JT to do this, because he was concerned that his job would be in jeopardy.  During the period June 1999 through December 2000, 10,000 shares of UVM were purchased in the JT IRA, at a total cost of $162,288. More than half of these purchases were done by Leavitt on an “unsolicited” basis.  During the period of December 1999 through August 2000, Leavitt purchased 7,000 shares of RST in the JT IRA, at a total cost of $84,785. More than half of these purchases were allegedly done on an “unsolicited” basis.
Customer JL, a dentist, maintained two accounts with Leavitt at the Firm, a regular securities account and an IRA. 26. The NAF for the JL personal account stated investment objectives of  growth, with a risk tolerance of moderate. The customer’s annual income was listed as $150,000+, and a total liquid net worth was listed as $250,000+.  Leavitt never informed JL of the speculative nature of the investments in UVM or XYZ and based on statements made to him by Leavitt, he believed that these investments were without significant risk.  During the period April 1999 through December 2000 the JL personal account purchased 2,000 shares of UVM at a cost to the account of approximately $37,000. Some time in 2000, at the recommendation of Leavitt, JL engaged in a private securities purchase of 25,000 shares of XYZ. These shares were never transferred into either of JL’s accounts at the Firm.  
Customers J and PB (the “B’s”) opened accounts with Leavitt at the Firm, after they transferred their accounts from another broker at the Firm. In addition to personal accounts, the B’s also opened an account in the name of C Financial, JB’s business.  The NAF for the B’s joint account indicated that they had an investment objective of “total return”, with a risk tolerance of “moderate”. The NAF for the account also indicated that they had an annual income of $100,000 to $150,000, and a total liquid net worth of $250,000 to $500,000.Leavitt never informed the B’s of the speculative nature of the investments, and consistently encouraged them to hold on to the positions.  In April 1999, a purchase of 1,000 shares of UVM was made in the B’s’ joint account, at a cost to the account of $17,346. In September 1999, an additional purchase of 1,000 shares of UVM was made for the C Financial account. In addition, there were two purchases of UVM in JB’s IRA in April 1999, one purchase of 1,000 shares at a cost to the account of $17,346, and a second purchase of 750 shares at a total cost to the account of $13,889. 
RE is a retired anesthesiologist. The NAF for the RE account stated that he had an investment objective of growth, with a risk tolerance of moderate. The NAF for the RE account also stated that he had an annual income of $220,000 and a net worth of $3,503,704, which roughly equated to the value of his holdings with the Firm.  At no time did Leavitt ever tell RE about the speculative nature of the UVM and XYZ investments, and based on statements made to him by Leavitt, he believed that they were investments without significant risk. During the period April 1999 through December 2000, the RE account purchased 16,000 shares of UVM at a cost to the account of approximately $316,000. In addition, in June and July 2000, the RE account purchased 75,000 shares of XYZ, at a cost to the account of $850,612. Additional shares of XYZ were purchased by RE in private securities transactions, away from the Firm. 

In August 1999, Leavitt solicited and sold to Customer AR 45,000 shares of XYZ in private securities transactions. This position was never transferred into any of AR’s accounts at the Firm. In approximately August 1999, Leavitt solicited and sold to customer PT 25,000 shares of XYZ in private securities transactions. These shares were transferred into PJ’s account at the Firm in November 1999. In approximately August 1999, Leavitt solicited and sold to customer GS 50,000 shares of XYZ in one or more private securities transactions. These shares were never transferred into one of GS’s accounts at the Firm. In approximately August 1999, Leavitt solicited and sold to customer RC 50,000 shares of XYZ in one or more private securities transactions. These shares of XYZ were never transferred into one of RC’s accounts at the Firm. In approximately August 1999, Leavitt solicited and sold to customer RB 50,000 shares of XYZ in one or more private securities transactions. These shares were transferred into one or RB’s accounts at the Firm in October 1999..

Leavitt also failed to comply with written requests by the Exchange that he appear and testify concerning matter under investigation by the Exchange.

The NYSE found that Leavitt:

I. Engaged in conduct inconsistent with just and equitable principles of trade in that he:
A. Engaged in trading which was unsuitable in light of the customers’ investment objectives.
B. On one or more occasions, made untrue statements of fact to one or more customers, in connection with the solicitation, purchase or sale of a stock.
II. Violated Exchange Rule 346(b) in that he engaged in an outside business activity by recommending investments in a private entity to customers, without making a written request and receiving the prior written consent of his member organization employer.
III. Violated SEC Rule 17a-3 and 17a-4 and Exchange Rule 440 in that he mismarked order tickets as unsolicited when the transactions were solicited.
IV. Violated Exchange Rule 477 in that he failed to comply with or respond to written requests by the Exchange that he appears and testify.

MARK DAVID LEAVITT

Censure and 4 year Bar in all capacities. 

Bill Singer's Comments

This case is almost a primer of what not to do and how not to do it --- unsuitable trades, mismarked "unsolicited" orders, telling clients to lie about nature of trades, undisclosed private securities trades, and topped off with a failure to cooperate.  Oddly, though, he only gets a 4 year Bar.  One suspects there would have been a far different result if this case were handled by NASD.

 
 

Denis Gilmour Yuen
(AWC/C10040031/May 2004)

OB

Denis Gilmour Yuen

Fined $2,500; Suspended 10 business days in all capacities

 

 
 

Robert Michael Seahorn, Sr.    
(AWC/C05040023/May 2004)

PS

Robert Michael Seahorn, Sr. 

Barred.

 

 
 

Howard Eugene Hustedt   
(AWC/C04040018/May 2004)

PS; and participated in transactions that required registration as a Series 7, when he wasn't qualified/registered in that capacity.

Howard Eugene Hustedt 

Barred.

 

 




  
    

      
        
Bill Powell Hanson  

        (AWC/C3B040010/May 
        2004)

      		
    

    

      
        

         OB
      

    

    

      Bill
        Powell Hanson 
        
Fined $10,000; Suspended 3 months in all capacities.
      

    

    

      
        
 

      		
    

  







  
    

      
        
Ronald Raymond Dowling 

        (AWC/C8A040018/May 2004)

      		
    

    

      
        

         OB$
      

    

    

      Ronald
        Raymond Dowling 
        
Fined $10,000; Suspended 30 business days in all capacities.
      

    

    

      
        
 

      		
    

  



 




  
    

      
        
Thomas Joseph Castro 

        (AWC/C10040050/April 
        2004)

      		
    

    

      
        

         OB; PS
      

    

    

      Thomas
        Joseph Castro
        
Fined $10,000; Suspended 35 business days in all capacities.
      

    

    

      
        
 

        
 

      		
    

  







  
    

      
        
Timothy Paul Stohs 

        (AWC/C9A040008/April 
        2004)

      		
    

    

      
        

         OB
      

    

    

      Timothy
        Paul Stohs 
        
Fined $5,000; Suspended 15 business days in all capacities.
      

    

    

      
        
 

        
 

      		
    

  




 




  
    

      
        
Elliot Seth Simon

        (AWC/C07030062/April 2004)

      		
    

    

      
        

         PS
      

    

    

      Elliot
        Seth Simon
        
Barred
      

    

    

      
        
 

        
 

      		
    

  



 




  
    

      
        
Larry Orrin Dubin

        (AWC/02040009/April
        2004)

      		
    

    

      
        

         PS
      

    

    

      Larry
        Orrin Dubin
        
 Fined $5,000; Suspended 10 business days in all capacities. 
      

    

    

      
        
 

        
 

      		
    

  



 




  
    

      
        
Jedd Dunas 

        (SFC/HPD 04-43/March 2004)

      		
    

    

      
 Jedd Dunas, a former registered representative with
Bear, Stearns & Co. Inc. (the “Firm”), entered the securities industry in or about 1980, and
was employed February 12, 1991 to May 1, 2001, with the
San Francisco branch office of the Firm. 
        
Dunas, while
employed at the Firm, made numerous personal investments in private companies,
away from the Firm. The Firm required completion of a Firm
Outside Business Interest document (“OBI”) for each private investment, away
from the Firm. The OBI form required disclosure of any compensation received,
the nature of any position held, and the amount of investment or ownership in an
outside business interest. The OBI would then be reviewed by Firm supervisory
personnel, and approval given or denied. Dunas completed the OBI forms for
his numerous private investments, and received the necessary approvals for his
private investments. The OBI documents, signed by Dunas, contained the
following attestation: “Have you ever referred any [Firm] clients or others to
invest in the above-described private transaction? If yes, list the persons
referred, the date of the referral and the amount of the investment” “I
attest that I will not solicit nor refer any [Firm] clients to participate in
this private securities transaction, nor to invest in any of the securities of
the above-described company or any of its affiliates”. 

        
 At least four of
Dunas’ customers made private investments, away from the Firm, in certain of
the same entities as Dunas, assisted by Dunas. Customers JM &MM made a
$100,000 investment in a private company, in or about 2000.  Customer C made
a $9,000 investment (a loan, repaid in stock) in a private company, in or about
2000.  Customers MS & HS made an investment of $38,000 in a private
company, in or about 2000.  Customer LS made investments of $25,000 in or
about 1997; $150,000 in or about 2000; $70,000 during 2000; and $50,000 in or
about 1999 in four private companies. On at least one occasion, a customer
procured restricted stock in a private company, away from the Firm, directly
from a company insider with whom Dunas had a private business arrangement. 
        Dunas had approved outside business interests in each of the private entities as
discussed above.  Dunas actively facilitated the customer involvement in
private investments away from the Firm,  as specified above. Dunas recommended
and facilitated his customers’ investment in these outside entities, and did
so without Firm knowledge or approval, and in contravention of representations
to the Firm in the OBIs. 

        
 The Division of Enforcement (“Enforcement”)
opened this investigation after receiving a Form U-5 Uniform Termination Notice
for Securities Registration (“Form U-5”) filing, dated June 2001, from the
Firm.  

        
The NYSE found that Dunas violated Exchange Rule
476(a)(6) by engaging in conduct inconsistent with just and equitable principles
of trade in that he recommended to one or more customers investments in a
private entity that was unrelated to his member firm employer and then
facilitated the investments without the knowledge or approval of his member firm
employer. 
      

    


    

      Jedd
        Dunas
Censure and Bar for 1 year in all capacities.  
      

    

    

      
         
      
    

  




 




  
    

      
        
Kelley Charles Judd 

        (AWC/02040009/March
        2004)

      		
    

    

      
        


         PS
      

    

    

      Kelley Charles Judd
        
 Fined $5,000; Suspended 30 days in all capacities. 
      

    

    

      
        
 

        
 

      		
    

  



 




  
    

      
        
Thomas Alfred Sewall  

        (OS/C06030030/March
        2004)

      		
    

    

      
        
OB$
      

    

    

      Thomas Alfred Sewall 
        
 Fined $65,300 including disgorgement of $55,300 in commissions;
        Suspended 1 year in all capacities.
      

    

    

      
        
 

        
 

      		
    

  



 




  
    

      
        
Kelley Charles Judd 

        (AWC/02040009/March
        2004)

      		
    

    

      
        


        PS
      

    

    

      Kelley Charles Judd
        
 Fined $5,000; Suspended 30 days in all capacities.
      

    

    

      
        
 

        
 

      		
    

  



 




  
    

      
        
David Charles Hawkinson 

        (OS/C8A030104/March
        2004)

      		
    

    

      
        


        PS and failed to respond to NASD requests for information. 

      

    

    

      David Charles Hawkinson
        
 Barred
      

    

    

      
        
 

        
 

      		
    

  



 




  
    

      
        
Jaime Robert Hellman 

 (AWC/C10040016/March
        2004)

      		
    

    

      
        
PS
      

    

    

      Jaime Robert Hellman 
        
Fined $17,138.75, including disgorgement of $12,138.75 in commissions received, and
        Suspended 3 months in all capacities. 
      

    

    

      
        
 

        
 

      		
    

  



 




  
    

      
        
David Charles Hawkinson 

        (OS/C8A030104/March
        2004)

      		
    

    

      
        
PS; and Hawkinson failed to respond to NASD requests for information. 
      

    

    

      David Charles Hawkinson
        
 Barred
      

    

    

      
        
 

        
 

      		
    

  



 




  
    

      
        
David Lloyd Garver  

        (AWC/C9A040004/March
        2004)

      		
    

    

      
        
OB$ 
      

    

    

      David Lloyd Garver 
        
 No Fine (financial status); Suspended 3 months in all capacities.
      

    

    

      
        
 

        
 

      		
    

  



 




  
    

      
        
William Joseph Dacey 

        (AWC/C11040007/March
        2004)

      		
    

    

      
        
PS 
      

    

    

      William Joseph Dacey 
        
 Fined $16,500, including disgorgement of commissions received;
        Suspended 60 days in all capacities.
      

    

    

      
        
 

        
 

      		
    

  



 




  
    

      
        
Charles David Condo 

        (OS/C05030056/March
        2004)

      		
    

    

      
        
PS
      

    

    

      Charles David Condo
        
 Fined $5,000; Suspended 4 months in all capacities; Ordered to pay $7,040, plus interest, in restitution to public 

        customers.
      

    

    

      
        
 

        
 

      		
    

  



 




  
    

      
        
Delroy Anthony Bryan  

        (AWC/C07040016/March
        2004)

      		
    

    

      
        
OB$
      

    

    

      Delroy Anthony Bryan 
        
 Fined $5,000; Suspended 3 months all capacities.
      

    

    

      
        
 

        
 

      		
    

  



 




  
    

      
        
North Coast Securities Corp. 

        (AWC/CAF040019/March
        2004)

      		
    

    

      
        
Firm
        executed sales of unregistered securities on behalf of a public customer and 
        failed to ascertain whether the stock was freely tradable. Failed to have adequate supervisory procedures in place 
        relating to the prevention of the sale of unregistered securities, and allowed a registered representative to engage in sales away 
        from the firm, for compensation, without properly supervising his participation in 
        those sales that entailed fraudulent omissions and the sale of unregistered 
        securities. 
      

    

    

      North Coast Securities Corp.
        
 Censured; Fined $10,000.
      

    

    

      
        
 

        
 

      		
    

  



 




  
    

      
        
Jeffrey Harlan Boss

        (C9B030042/February
        2004)

      		
    

    

      
        
Boss OB$ and then failed to respond to NASD requests
        for information. 

    

    

      Jeffrey
        Harlan Boss
        
Barred

      		
    

    

      
        
 

      		
    

  




 



  
    

      
        
Barry Duane Jordan

        (AWC/C02040003/February
        2004)

      		
    

    

      
        
PS

    

    

      Barry
        Duane Jordan
        
Fined $5,000; Suspended 60 days in all capacities.

      		
    

    

      
        
 

      		
    

  



 



  

    
      
Jordan A. Ness 

      (AWC/C3B040002/February
      2004)

    		
  

  

    
      
PS;  OB$; also, Ness established securities
      accounts at other member firms, and after he became registered with member
      firms, he failed to promptly notify his member firm in writing that he had
      established the accounts, and failed to promptly notify the other firms of
      his association with his member firm. 

  

  

    Jordan
      A. Ness 
      
Fined $22,500; Suspended 120 days in all capacities.

    		
  

  

    
      
 

    		
  




 



  
    

      
        
Peter Michael Panagiotou 

        (OS/C11030039/February
        2004)

      		
    

    

      
        
OB$; and failed to amend his Form U4 to reflect his
        outside business activities.

    

    

      Peter
        Michael Panagiotou 
        
In light of the financial status of Panagiotou, no monetary sanction 

        has been imposed; Suspended 2 years in all capacities.

      		
    

    

      
        
 

      		
    

  



 



  
    

      
        
Michael Jay Plummer

        (OS/C8A030067/February
        2004)

      		
    

    

      
        
OB$

    

    

      Michael
        Jay Plummer
        
In light of the financial status of Plummer, the fine imposed is
        $1,000; Suspended 10 business days in all capacities.

      		
    

    

      
        
 

      		
    

  



 



  
    

      
        
George Cawood Quinn

        (AWC/C9B040002/February
        2004)

      		
    

    

      
        
PS

    

    

      George
        Cawood Quinn
        
Fined $5,000; Suspended 30 days in all capacities.

      		
    

    

      
        
 

      		
    

  



 



  
    

      
        
Gerald Francis Stonehouse 

        (AWC/C11040003/February
        2004)

      		
    

    

      
        
PS

    

    

      Gerald
        Francis Stonehouse 
        
Fined $5,000; Suspended 6 months in all capacities.

      		
    

    

      
        
 

      		
    

  



 



  
    

      
        
David Brian Thomas, Sr.

        (AWC/C05040002/February
        2004)

      		
    

    

      
        
PS

    

    

      David
        Brian Thomas, Sr.
        
Fined $5,000; Suspended 6 weeks in all capacities.

      		
    

    

      
        
 

      		
    

  



 



  
    

      
        
Duane Scott Vallie

        (AWC/C07040005/February
        2004)

      		
    

    

      
        
PS;OB$

    

    

      Duane
        Scott Vallie
        
Fined $50,000 (including disgorgement of $45,291); Suspended 18
        months in all capacities.

      		
    

    

      
        
 

      		
    

  



 




  

    
      
Thomas Harris Thorp

      (C8A030043/January
      2004)

  

  

    
      
PS. Thorp failed to respond to NASD requests for
      information. Also, he intentionally and/or recklessly induced public
      customers to invest in a scheme that had no legitimate investment purpose.
      Further, he failed to apply a public customer's funds as directed. 

  

  

    Thomas
      Harris Thorp
      
Barred

  

  

    
      
 

    		
  




 



  

    
      
John Herman Schmidt and Patsy L. Schmidt

      (AWC/C04030060/January
      2004)

  

  

    John
      Herman Schmidt: PS; and engaged in a securities business without proper
      NASD registration. 

      John and Patsy Schmidt: engaged in outside business activities without
      requesting and receiving prior written approval from their member firms.		
  

  

    John
      Herman Schmidt 
      
Fine: none imposed per financial
      status of respondent; Barred

    Patsy
      L. Schmidt
      
Fine: none imposed per financial
      status of respondent; Suspended 6 months in all capacities

  

  

    
      
 

    		
  




 



  

    
      
Stephen Vincent Samo

      (OS/C01030020/January
      2004)

  

  

    PS;
      OB$
  

  

    Stephen
      Vincent Samo
      
Barred

  

  

    
      
 

    		
  




 


 



  

    
      
Daniel Timothy Pszanka 

      (C10020090/January
      2004)

  

  

    PS;
      OB; Used manipulative, deceptive, or other fraudulent devices in
      connection with the purchase of interests in a limited partnership by
      public customers. Made material misrepresentations and omissions to public
      customers that he had invested his own money in the limited partnership
      when, in fact, he had not, and was skeptical of all claims regarding
      investment returns. Pszanka created and provided investment account
      statements to public customers that contained purported information
      regarding the amount of their principal investments, the performance of
      their investments, and their percentage of return on investment but
      instead negligently misrepresented the truth to the customers.
  

  

    Daniel
      Timothy Pszanka 
      
Barred

  

  

    
      
 

    		
  




 



  

    
      
Jeffrey Alan Jones

      (AWC/C05030060/January
      2004)

  

  

    
      
PS; OB$

  

  

    Jeffrey
      Alan Jones
      
Fined $10,000; Suspended 6 months in all capacities
    

  

  

    
      
 

    		
  




 



  

    
      
Tommy Lee Huff, Jr.

      (AWC/C05030058/January
      2004)

  

  

    
      
OB;  PS

  

  

    Tommy
      Lee Huff, Jr.
      
"Ordered to pay" $51,235
      in deferred restitution; Suspended 2 years in all capacities

    		
  

  

    
      
 

    		
  































RRBDLAW.COM AND SECURITIES INDUSTRY COMMENTATOR™ © 2004 BILL SINGER




THIS WEBSITE MAY BE DEEMED AN ATTORNEY ADVERTISEMENT OR SOLICITATION IN SOME JURISDICTIONS.  AS SUCH, PLEASE NOTE THAT THE HIRING OF AN ATTORNEY IS AN IMPORTANT DECISION THAT SHOULD NOT BE BASED SOLELY UPON ADVERTISEMENTS.  MOREOVER, PRIOR RESULTS DO NOT GUARANTEE A SIMILAR OUTCOME. NEITHER THE TRANSMISSION NOR YOUR RECEIPT OF ANY CONTENT ON THIS WEBSITE WILL CREATE AN ATTORNEY-CLIENT RELATIONSHIP BETWEEN THE SENDER AND RECEIVER. WEBSITE SUBSCRIBERS AND ONLINE READERS SHOULD NOT TAKE, OR REFRAIN FROM TAKING, ANY ACTION BASED UPON CONTENT ON THIS WEBSITE. THE CONTENT PUBLISHED ON THIS WEBSITE REPRESENTS THE PERSONAL VIEWS OF THE AUTHOR AND NOT NECESSARILY THE VIEWS OF ANY LAW FIRM OR ORGANIZATION WITH WHICH HE MAY BE AFFILIATED. ALL CONTENT IS PROVIDED AS GENERAL INFORMATION ONLY AND MUST NOT BE RELIED UPON AS LEGAL ADVICE. CONTENT ON THIS WEBSITE MAY BE INCORRECT FOR YOUR JURISDICTION AND THE UNDERLYING RULES, REGULATIONS AND/OR DECISIONS MAY NO LONGER BE CONTROLLING OR PERSUASIVE AS A MATTER OF LAW OR INTERPRETATION.





Telephone: 917-520-2836


Fax at 720-559-2800

E-mail to bsinger@rrbdlaw.com




FOR DETAILS ABOUT MR. SINGER, PLEASE READ HIS
ONLINE BIOGRAPHY


PAGE TOP