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 Russell McCarthy Jr. (Principal)
AWC/2006003916902

McCarthy 

• permitted an individual to perform functions requiring principal registration without being registered with FINRA in that capacity;
• failed to enforce his member firm’s written supervisory procedures requiring that a Watch/Restricted list be maintained while the firm participated in underwriting activities; and
• failed to file a Suspicious Activity Report (SAR) in connection with suspicious stock transactions and wire activity involving the sale of over one billion shares of a sub-penny stock from the account of one customer resulting in total proceeds of over $786,000. 

James Russell McCarthy Jr. (Principal): Fined $20,000; Suspended 2 months in Principal capacity only