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.

James Leo Carroll
AWC/2009016911201

Carroll invested approximately $100,000 of his own money in a Ponzi scheme from which he made a $25,000 profit; Carroll did not invest any customer funds in the Ponzi scheme. Carroll failed to disclose his private securities transaction to his member firm until after the Ponzi scheme collapsed and his firm’s home office began investigating possible involvement of its registered representatives. Carroll engaged in outside business activities and failed to provide prompt written notice to his firm regarding his involvement.

James Leo Carroll : Fined $7,500; Suspended 30 days

Tags: Ponzi