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.

Coady Diemar Partners, LLC
AWC/2008011683801

The Firm failed to maintain and preserve all of its business-related electronic communications. The Firm engaged a third-party vendor to preserve such communications, but the vendor did not properly retain the electronic communications and ultimately purged virtually all of the electronic communications it had initially captured for the firm. The Firm did not otherwise preserve all of its business-related electronic communications and emails deleted from the firm’s computers were not retained.

Coady Diemar Partners, LLC : Censured; Fined $35,000; Ordered to comply with an undertaking that the firm’s chief executive officer will certify to FINRA in writing that the firm has systems and procedures in place reasonably designed to achieve compliance with those laws, regulations and rules concerning the preservation of electronic mail communications.

Tags: Electronic Communications