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.

Morris Noriaki Kunita (Principal)
AWC/2009019051902

Kunita allowed a registered representative over whom he had supervisory authority to sell preferred stock through a private placement while not appropriately registered to sell that product. The registered representative knew that he was not appropriately registered to sell the product to the customer and asked Kunita—his supervisor—to sign the subscription agreement as the selling representative. Kunita agreed and signed the subscription agreement, and submitted the application, including the subscription agreement, to the member firm for processing. The firm approved the investment and executed the transaction. Kunita caused the firm’s books and records to be inaccurate by signing the subscription agreement as the selling representative when, in fact, he was not the selling representative.

Morris Noriaki Kunita (Principal): Fined $7,500; Suspended 15 business days

Tags: Unregistered Person  Private Placement