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.

Donald Jay Carrig
AWC/2007008239004)

Carrig participated in the sale of unregistered shares of a thinly traded penny stock into the public markets on customers’ behalf, resulting in proceeds of $106,320.89 to the customers. Carrig failed to

• perform adequate due diligence prior to executing these sales, notwithstanding his duty to do so and the “red flags” indicating potential violation of the registration requirements of the Securities Act of 1933;
• undertake adequate efforts to ascertain the information necessary to determine whether the customers’ unregistered shares could be sold in compliance with Section 5 of the Securities Act; and
• determine how the customers came to obtain the stock or whether there was an applicable exemption to registration.

Donald Jay Carrig : FIned $15,000; Suspended 30 days

Tags: Unregistered Securities