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.

Searle & Co. and Robert Southworth Searle (Principal)
AWC/2010022352301

Acting through Searle, the Firm shared approximately $326,000 worth of profits in the account of a customer of another FINRA member firm. Neither the firm nor Searle contributed financially to the customer’s account; and, therefore, neither could share in the profits in direct proportion to their financial contributions to the account.

The Firm failed to establish, maintain, and enforce adequate WSPs related to sharing in profits and losses in FINRA member firms’ customer accounts.

Searle & Co.: Censured; Fined $10,000 jointly/severally with Searle; Fined Additional $5,000

Robert Southworth Searle: Censured; Fined $10,000 jointly/severally with Searle & Co.

Tags: Sharing Profits