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.

Robert Michael Marcus
AWC/2007008239003

Marcus participated in the sale of unregistered shares of a thinly traded penny stock into the public markets on customers’ behalf, which resulted in proceeds of almost $18,000 to the customers. Marcus was not the designated registered representative on customer accounts but he assumed certain responsibilities for the accounts, including determining whether securities sold from the accounts were freely tradable. Marcus 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 registration requirements of the Securities Act of 1933. Marcus failed to 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 failed to determine how the customers came to obtain the stock or whether there was an applicable exemption to registration.

Robert Michael Marcus: Fined $10,000; Suspended 1 year

Tags: Unregistered Securities