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.

EKN Financial Services Inc.
2005002259501

EKN effected transactions with retail customers at prices that were not fair and not reasonably related to the current market price of the security. The Firm failed to preserve the order tickets for bond transactions at issue regarding the excessive markups, thereby failing to preserve required books and records. The Firm failed to exercise reasonable diligence to ascertain the best available price for its customers under the prevailing market conditions.

EKN Financial Services Inc. : Fined 32,500; Ordered to pay $4,092.30 plus interest in customer restitution

Tags: Mark-Up Mark-Down