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.

Amy Lou Marsh
AWC/2009018844901

Marsh borrowed $50,000 from a customer at her member firm and did not disclose to the customer that she already had borrowed $90,000 from another individual and that the debt was still largely outstanding. The Firm’s procedures specifically prohibited registered representatives from borrowing money from customers; Marsh did not inform her firm of this loan, which was repaid.

Marsh repaid the $50,000 loan referenced above to the customer by transferring her membership interest in a limited liability company formed to invest in real estate projects in Costa Rica. Marsh had purchased the membership interest, which is a security for $50,000, using the funds she had borrowed from the customer.

While registered at a different member firm, Marsh borrowed $3,500 and $5,600 from another customer, and the firm’s procedures specifically prohibited registered representatives from borrowing money from customers. In addition, FINRA determined that Marsh did not inform the firm of this loan, which was repaid, and falsely represented on the firm’s Annual Compliance Certification Questionnaire that she had not borrowed money from a customer.

Marsh engaged in a private securities transaction without prior written notice to, or prior written approval from, her member firm.

Amy Lou Marsh : Fined $10,000; Suspended 6 months

Tags: Borrowing