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.

Jacob Karamian
AWC/2007010029301

Karamian changed the address of record for a customer’s brokerage account to the branch address of the firm office where he worked without the customer’s knowledge, authorization and consent. Karamian sent, via facsimile, a letter of authorization to his member firm’s cashiering department requesting a wire transfer of $281,768 from the customer’s brokerage account to a third party escrow account at a bank without the customer’s knowledge, authorization and consent. Karamian had the customer sign the letter of authorization for the withdrawal of these funds, knowing that the customer had not read the letter and did not knowingly authorize or consent to the request to transfer funds out of his account. Through a series of financial transactions, Karamian caused $261,000 of the funds transferred to be deposited into a bank account he controlled and the customer had not authorized the transfer. 

Jacob Karamian: Barred