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.

Karl Henry Rodriguez (Supervisor)
AWC/2011026130701

 Rodriguez converted and misappropriated $10,000 from the bank checking account of a customer of his member firm and the firm’s bank affiliate.

While researching an investment for the customer, a bank employee discovered that Rodriguez had diverted a $10,000 check from the customer’s bank checking account and made the check payable to a third party, who was also a bank customer and Rodriguez’ close personal friend. The customer neither authorized Rodriguez to make the check payable to the third party nor divert the funds to the third party’s account at the bank. The third party made cash withdrawals totaling $10,000 from the bank account, and gave the money to Rodriguez, who used the funds for his personal benefit.

Ultimately, the bank re-deposited $10,000 into the customer’s bank checking account, and as a result of the bank’s inquiry, Rodriguez repaid approximately $5,000 to the bank.

Karl Henry Rodriguez (Supervisor): Barred

Tags: Banks  Checks  Conversion