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.

David Scott Isolano (Principal)
OS/2007007253803

Isolano's member firm willfully charged excessive and fraudulent markups to customers in connection with their purchase of penny stocks, and Isolano was personally responsible for failing to enforce the firm’s supervisory procedures and was directly liable for the firm’s fraudulent and excessive markups. Isolano engaged in a fraudulent markup scheme in connection with customers’ transactions with the purchase or sale of a security. As his member firm’s CEO, Isolano failed to reasonably enforce its supervisory procedures concerning markups and proprietary trading. Isolano knew a markup was assessed on customer transactions and failed to take steps to ensure the markup was fair and reasonable or in compliance with the firm’s supervisory procedures.

David Scott Isolano (Principal): Fined $40,000; Suspended 5 months in all capacities and thereafter for 1 month in Principal capacity only

Tags: Mark-Up Mark-Down