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.

Duane Alan Carr
AWC/2008013303601

Carr opened accounts with his member firm for customers, without speaking with the customers in connection with opening their accounts or receiving the customers’ direct authorization to liquidate their accounts, but relied on directions received from third parties. Carr exercised discretion in the customers’ accounts when he executed transactions without his member firm’s written authorization or acceptance of the accounts as discretionary.

Carr engaged in outside business activity for compensation, outside the scope of his business activities with his firm, relating to opening the customers’ accounts through third-party intermediaries. Carr engaged in the outside business activity without providing prompt written notice to his member firm of the outside business arrangement and of the compensation he received from the arrangement.

Duane Alan Carr : Fined $10,000; Suspended 6 months