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.

2007
PRIVATE SECURITIES TRANSACTIONS

Amsler engaged in private securities transactions for compensation; failed to give his member firm written notice; and his member firm did not authorized Amsler to engage in such activities. The firm ’s written procedures specifically prohibited representatives from becoming involved with the sale of promissory notes. 

Barry Lynn Amsler : Fined $50,000 (including $31,860 in disgorged benefits from sale of promissory notes); Suspended 24 months

Zinn participated in a private securities transaction without prior written notice to, or prior approval from, his member firm; and engaged in an outside business activity without providing prompt written notice to his member firm. Zinn failed to respond to NASD requests for documents and information. 

Kevin Irving Zinn : Barred

Spitalny participated in private securities transactions without prior written notice to, or prior written approval from, his member firm. Also,  Spitalny engaged in outside business activities without prior written notice to his member firm. 

Brett Steven Spitalny : Fined $30,945 (includes $20,945 disgorgement of commissions); Suspended 1 year in all capacities

Eugster participated in a private securities transaction for compensation without prior written notice to, and written permission from, his member firm. 

John William Eugster: Fined $10,000; Suspended  2 months in all capacities; Required to demonstrate to FINRA that he has relinquished his entitlement to any profits realized by a limited liability company (LLC) he formed and managed upon the distribution to its members securities acquired in a private placement and any document pertaining to the LLC requiring revision or amendment to effect his relinquishment of his entitlement to any portion of profit has been revised or amended as evidenced by the submission to NASD of the document(s) in their original and revised or amended forms.

Williams engaged in a private securities transaction without prior notice to, and approval from, his member firm. Williams engaged in outside business activities, for compensation, without prompt written notice to his member firm.

Asa Williams : Fined $20,000 (includes $10,000 disgorgement); Suspended 4 months in all capacities.

Taylor participated in private securities transactions and failed to provide his member firm with any notice, written or otherwise, of these transactions, his proposed role therein and whether he would receive any compensation. 

Michael Robert Taylor: No fine in light of financial status; Suspended 9 months in all capacities

Palmer participated in private securities transactions without prior written notice to, or prior written approval from, her member firm. 

Patricia Ann Palmer : No fine in light of her financial status; Suspended 1 year in all capacity

Oliphant participated in private securities transactions without prior written notice to, or prior written approval from, his member firm. Oliphant failed to respond to NASD requests for information. 

Bryan Darrell Oliphant : Barred

Malkasian engaged in private securities transactions without prior written notice to, and approval from, his member firms. Malkasian received $798,000 from public customers to invest in a money market fund but, instead, used the funds to invest in business opportunities related to his accountancy business; and failed to provide investors with any documentation evidencing their investment. 

Jeffrey Tatios Malkasian : Barred

DeAngelis engaged in private securities transactions and maintained an outside securities account without prior written notice to his member firm. DeAngelis failed to respond to NASD requests for information. 

Kayel Guy DeAngelis: Barred

Chandler participated in a private securities transaction and failed to provide prior written notice to, and obtain prior written permission from, his member firm. Chandler failed to respond to an NASD request to appear for an on-the-record interview.

Seth William Chandler: Barred

Singson participated in private securities transactions without providing prior written notice to his member firm describing in detail the proposed transaction and his role therein. Singson refused to respond to questions during an NASD on-the-record interview.

Rufino T. Singson Sr. : Barred

Pemba participated in private securities transactions without providing his member firm with written notice. 

Tsewang Tenzing Pemba: Fined $5,000; Suspended 6 months in all capacities

Parma participated in a private securities transaction without prior written notice to, and approval from, her member firm.

Christine Nicole Parma : Fined $10,000; Suspended 6 months in all capacities

Liu engaged in private securities transactions without prior written notice to, and prior written approval from, his member firm; and failed  to appear for an NASD on-therecord testimony. 

Samuel Yungkong Liu : Barred

While registered with his member firm, Lerner did not conduct any firm business but parked his license with the firm. Lerner engaged in outside business activities and private securities transactions while his license was parked.  Lerner failed to disclose a material fact on his Form U4 and provided false testimony under oath during an NASD on-the-record interview. 

Darrell Craig Lerner : Barred

Ellis engaged in private securities transactions without providing prior written notice to, or receiving written approval from, his member firm describing in detail the proposed transactions, his role therein, and stating whether he had received or might receive selling compensation in connection with the transactions. 

Robert John Ellis: Fined $56,650 (includes $46,650 in commission disgorgement); Suspended 1 year in all capacities

Bertholic engaged in private securities transactions without prior notice to, or approval from, his member firm. TBertholic received $435,000 from public customers to purchase a promissory note from which the proceeds were to be invested in real property or to maintain and improve real property and, instead, Bertholic used the funds for his personal benefit. Bertholic published newspaper advertisements, a brochure and a flier, and developed a Web site that did not disclose his firm’s name and were not approved by a registered principal of the firm. The brochure and Web site did not provide a balanced discussion of the risks involved in real estate lending; did not disclose risks and contained false, exaggerated, unwarranted and/or misleading statements. The Web site presented testimonials from purported customers who, in fact, had never transacted any business with Bertholic. 

Francis Bart Bertholic Jr.: Barred

Alvino participated in a private securities transaction without prior written notice to his member firm. Alvino failed to amend his Form U4 to disclose material information. 

Richard Michael Alvino: Fined $10,000; Suspended 4 months in all capacities

Bernstein participated in private securities transactions without providing prior written notice to, and obtaining approval from, his member firm. 

Howard Scott Bernstein : Suspended 120 days in all capacities.

Midgley participated in private securities transactions without notifying his member firm. He made an unsuitable recommendation to a public customer, failed to respond to NASD requests for information and failed to appear for testimony.

Jason Charles Midgley: Barred

Cao failed to provide his member firm with prompt written notice of his outside business activities; and he participated in private securities transactions without providing prior written notice to, and receiving prior written approval from, his member firm. 

Thanh Viet Jeremy Cao: Fined $10,000; Suspended 1 year in all capacities

Acosta participated in private securities transactions without requesting or obtaining his member firm’s prior written approval.

David Acosta : Fined $10,000; Ordered to pay $26,000 restitution to customer; Suspended 6 months in all capacities

Wakeley engaged in 

• private securities transactions without providing prior written or verbal notice to his member firm describing in detail the proposed transactions, his role therein and whether he had received, or might receive, compensation in connection with the transactions; and
• outside business activities without providing prompt written notice to his member firm. 

Also,Wakeley made an unsuitable investment recommendation to a public customer.

Travis Donald Wakeley : Barred

Rosen participated in private securities transactions, for compensation, outside the scope of his employment with his member firm without providing his member firm with prior written notice. 

Arthur Charles Rosen: Fined $9,000 (includes $4,000 disgorgement); Suspended 3 months in all capacities

Francis engaged in a private securities transaction without providing prior written notice to his member firm describing in detail the proposed transaction, his role therein, and stating whether or not he had received, or might receive, selling compensation.

George Kelly Francis Jr.: Suspended 30 days in all capacitiy; No fine in light of financial status

Abbondante engaged in 

• private securities transactions without providing prior written notice to, and obtaining prior written approval from, his member firm;
• an outside business activity without providing written notice to his member firm; and
• material misrepresentation and omission of material facts in connection with his recommendation of an investment to public customers. 

Also, Abbondante caused to be created, and knowingly facilitated an individual in providing, fictitious account statements purporting to show pertinent information to their investments.

Joseph Abbondante: Barred; Ordered to pay $276,265 (plus interest) in restitution to customers.

Pratt engaged in private securities transactions without providing prior written notice to, and receiving prior written approval from, his member firm.

Donald Chapman Pratt : Fined $5,000; Suspended 30 days in all capacities.

Lester he participated in private securities transactions without providing prior written notice to, or receiving written approval from, his member firm. He made a recommendation to a public customer without having a reasonable basis for believing that the recommendation was suitable based upon customer’s investment objectives, financial status and needs. In connection with the recommendation, Lester signed the customer’s name to withdrawal forms and submitted them to his member firm without giving any notice or other indication on the withdrawal forms that he had signed them on the customer’s behalf.

Myron Doyle Lester : Fined $10,000; Suspended 1 year in all capacities.

Kapsalis participated in a private securities transaction, failed to provide written notification to his member firm and failed to respond to NASD requests for information. 

Roger Angelo Kapsalis: Barred

Gay engaged in private securities transactions without providing prior written notice to, and receiving approval from, his member firm. Also, he failed to provide complete testimony and to respond to NASD requests for documents and information. 

William Alan Gay : Barred

Comerford participated in private securities transactions, for compensation, without providing prior written notice to, and obtaining approval from, his member firm; and he failed to timely respond to NASD requests for information. 

Dennis Scott Comerford : Barred

Campbell engaged in an outside business activity and participated in private securities transactions without providing prior written notice to his member firm. 

Douglas Walter Campbell Jr. : Fined $5,000; Suspended 35 days in all capacities