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.

Timothy Tilton Ayre (Principal)
AWC/2007007205501

Ayre failed to take appropriate action to supervise a firm registered representative reasonably designed to prevent him from permitting an unregistered individual from conducting a securities business with firm customers. Ayre ignored “red flags” indicating possible misconduct, failed to conduct any meaningful review of the registered representative’s activities, and never conducted an internal inspection of his office. Acting through his member firm, Ayre failed to establish, maintain and enforce a supervisory system and written procedures to supervise the activities of each registered person that were reasonably designed to achieve compliance with the applicable rules and regulations in the following areas: discretionary accounts, branch operation supervision, heightened supervision, form filings, business continuity planning, net capital requirements, Regulation S-P, transaction reporting and variable product suitability. 

Timothy Tilton Ayre (Principal): Fined $10,000; Suspended 1 month in Principal Capacity only.