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.

Michael Phillip Dunham (Principal)
AWC/2008016130001

Dunham exercised discretion in customers’ account, without written authorization from the customers and his member firm’s acceptance of the accounts as discretionary.

Dunham attempted to settle a customer’s anticipated complaint without notifying the firm of the customer’s concerns or the fact that he had paid her a total of $20,000 to settle, even though he did not have his firm’s permission to settle customer complaints. The customer did not cash the checks Dunham gave her and subsequently filed a complaint with the firm regarding the margin balance in her account.

Michael Phillip Dunham (Principal): Fined $10,000; suspended 20 business days

Tags: Discretion