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.

Kevin Mark Pilipczak
AWC/2008012873901

Pilipczak evaded his member firm’s supervisory system by concealing the sale of a customer’s variable annuity by forwarding the documentation directly to the insurance carrier and not notifying his firm of the sale,which caused his member firm’s records to be inaccurate and incomplete with respect to the transaction. Pilipczak provided a written statement to his firm in connection with the purchase of a new variable annuity transaction by the customer, falsely claiming that it was not funded by the sale proceeds from the earlier variable annuity. 

Kevin Mark Pilipczak: Fined $12,500; Suspended 1 year