NOTE: Stipulation of Facts 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 and to the entry of findings.

FINANCIAL INDUSTRY REGULATORY AUTHORITY
FINRA
2008
UNDISCLOSED SETTLEMENTS/GUARANTEEING AGAINST LOSSES

Read NASD Conduct Rule 2370 and NYSE Rule 352

VISIT WALL STREET'S LEADING ONLINE COMMUNITY
BrokeAndBroker.com

Gold settled a customer complaint outside of his member firm without immediately informing his firmor obtaining its consent to do so. 

Lee Alexander Gold: Fined $5,000; Suspended 40 days in all capacities

Without informing his member firm and without the firm’s approval, Hill deposited $3,200 into a public customer’s bank account to compensate the customer for a loss incurred in the purchase of securities

Braden Scott Hill: Fined $5,000; Suspended 10 business days in all capacities.

Bloom made multiple payments totaling $33,000 to a public customer in order to settle a potential claim by the customer.

Charles Lewis Bloom: Fined $5,000; Suspended 20 business days in all capacities

Weaver entered materially false and/or inaccurate public customer information on firm documents, thereby causing his member firm to maintain false or inaccurate records. Weaver signed a customer’s name on investment-related forms without the customer’s authorization or consent. Weaver made a $550 payment to the customer in settlement of her complaint without his member firm’s knowledge. 

Clifford Lee Weaver: Barred

Adler settled a customer complaint without notifying his current or previous member firm. 

Jeffrey Steven Adler: Fined $5,000; Suspended 10 business days in all capacities

Paratore converted $3,772.71 of a public customer’s insurance premiums and settled four customer’s complaints without the member firm’s knowledge or authorization.

Paul Douglas Paratore:Barred 

Chavez failed to inform his member firm about a public customer’s complaint—as his firm’s procedures required—and entered into a settlement agreement with the customer in which he agreed to pay her $60,000 to settle her complaint without his firm’s knowledge or approval. 

Frederic Ray Chavez: Fined $5,000; Suspended 90 days

Hernandez engaged in a pattern of charging commissions on equity trades substantially in excess of his member firm’s standard commission rate that began at the start of, and continued throughout, his employment with the firm. He manipulated the firm’s order entry system so as to enable him to charge the commissions in question. Hernandez had an express agreement with a public customer to charge a lower commission rate, but he fraudulently violated the agreement. Hernandez failed to report complaint letters from the customer as reportable complaints to his member firm, causing his firm to violate NASD Rule 3070(c). 

Juan Carlos Hernandez: Barred

Barry attempted to compensate public customers for losses incurred related to a delay in processing a stock sale. Barry wrote personal checks totaling $7,000 to the customers without informing his member firm that he had attempted to compensate the customers, and without obtaining authority from his firm to settle the loss in this manner. 

Timothy Patrick Barry: Fined $5,000; Suspended 10 business days

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

Cundiff entered into a real estate business arrangement with a public customer and entered into a settlement agreement with the customer without being the customer's representative of record. Cundiff did not provide his member firm with a copy of the agreement before he signed it or before it became effective. 

Jeremy Tice Cundiff: Fined $5,000; Suspended 10 business days

FINRA -- just too many damn questions that you should have answered!  Get your act together.

Yun engaged in outside business activities, for compensation, without prior written notice, or any notice at all, to his member firm. When Yun was questioned by his firm about his business activities, he made misrepresentations regarding any involvement, receiving compensation, distributing sales or marketing material, discussing the business activity with any individuals and knowing any firm customers that had invested in the company. 

Yun settled customer complaints about their losses by giving the customers promissory notes without telling his firm about the customer complaints or purported settlements. Yun guaranteed customers against loss. Yun executed discretion in customer accounts without the customers' prior written authorization and his firm 's prior written acceptance of the accounts as discretionary, and exercised discretionary authority without disclosing it to his firm. 

Walter Yun (Principal): Barred

Many would think that juggling two such violations would be enough, but, frankly, veteran defense lawyers and enforcement attorneys know that there is even more below the surface.  Generally, if someone has covered up an OBA activity and entered into undisclosed settlements, there's a good chance that there's yet another improper side deal.  The way it often goes is that the RR says to the customer: "Look, give me a chance here to make it up to you.  Let me trade your account and I'll get your losses back."  And if the once-burned client says 'no,' then the RR often retorts with "Okay, how about I guarantee you against any loss?  Will that persuade you to keep this all quiet and give me a chance?"  I have no idea what happened with Yun, but I am not surprised to see how the dominos fell here.