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.

Hugh Alexander Ross Sr.
AWC/2008016154401

Ross borrowed $100,000 from firm customers—a husband and wife—contrary to firm written procedures, and he did not obtain his member firm’s written pre-approval for the loan. Ross falsely claimed to the firm’s affiliate that the funds were not borrowed, and falsified a letter in support of that claim by affixing one of the customer’s signature on the letter. Ross falsely certified on a firm compliance questionnaire that he had not borrowed money from customers.

Hugh Alexander Ross Sr. : Fined $10,000; Suspended 1 year

Tags: Borrowing  Annual Compliance Certification