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.

Hector J. Gallardo
2007010869001

Gallardo engaged in outside business activities without notifying his member firm. Gallardo signed a statement indicating that he had read and agreed to his member firm’s written supervisory procedures that prohibited registered representatives from engaging in any transaction not sponsored or authorized by the firm. Gallardo provided fictitious monthly account statements to clients purporting to be monthly account statements from his unregistered investment company, and failed to respond to FINRA requests for information.

Hector J. Gallardo: Barred; Ordered to pay $984,774, plus interest, in restitution to customers.