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.

Jason Roberts Coles
AWC/2007010593501

Coles effected transactions by causing journal entry transfers of cash and/or securities between customer accounts without employing his member firm’s trading system. This practice allowed the customers to exchange cash or securities for securities without utilizing proper firm order-entry procedures for the purchase or sale of securities by customers, caused his firm to issue inaccurate state and federal tax reporting documents to customers and caused operations errors that resulted in customer harm. The Firm did not perform a sales supervisory review at the time the transactions occurred because they did not appear on the firm’s sales and purchase blotter, which is the firm’s tool for initial supervisory review, but rather, the transactions appeared on the firm’s journal entry blotter, which was not used for sales practice review. The transactions were not reported to the marketplace in the ordinary course of the firm’s business.

Jason Roberts Coles : Fined $5,000; Suspended 1 month