FINRA Enforcement Actions – November, 2011

Fraud, Misrepresentation, Theft, Mismanagement, Selling Away, Unauthorized Outside Business and Negligent Supervision FINRA Arbitration and Litigation Lawyer, Russell L. Forkey, Esq. is available for a free consultation if you have suffered investment losses relative to any of the matters set forth below:

Periodically, the Financial Industry Regulatory Authority, Inc. (FINRA) publically announces, on its website, enforcement actions that have either recently been settled by or commenced against broker/dealers and/or associated persons.

We review these settlements and filed actions each month and provide a brief description of those matters which we believe will be of interest to investors.

Please keep in mind that the complaints issued by FINRA represents FINRA’s initiation of a formal proceeding in which findings as to the allegations in the complaint have not been made, and does not represent a decision as to any of the allegations contained in the complaint. Because these complaints have not yet been adjudicated, you may wish to contact the respondents before drawing any conclusions regarding the allegations in the complaint.

Recently, FINRA posted a new online data base which provides access to copies of documents underlying certain of the matters discussed herein. Read More.

November, 2011:

Brookstone Securities, Inc. (CRD® #13366, Lakeland, Florida), David William Locy (CRD #4682865, Registered Principal, Overland Park, Kansas), Mark Mather Mercier (CRD #1884246, Registered Principal, Lutz, Florida) and Antony Lee Turbeville (CRD #1721014, Registered Principal, Lakeland, Florida) submitted Offers of Settlement in which the firm was censured and fined $200,000; Locy was fined $10,000 and suspended from association with any FINRA member in any principal capacity for three months, Mercier was fined $5,000 and suspended from association with any FINRA member in any principal capacity for three months, and Turbeville was fined $10,000 and suspended from association with any FINRA member in any principal capacity for three months. Read More.

November, 2011:

J.P. Turner & Company, LLC (CRD #43177, Atlanta, Georgia) and James Edward McGrath (CRD #1582846, Registered Principal, Brick, New Jersey) submitted an Offer of Settlement in which the firm was censured and fined $20,000. McGrath was fined $5,000 and suspended from association with any FINRA member in any principal capacity for 10 business days. Read More.

November, 2011:

Beta Capital Management, L.P. (CRD #38964, Miami, Florida) submitted a Letter of Acceptance, Waiver and Consent in which the firm was censured and fined $450,000. Without admitting or denying the findings, the firm consented to the described sanctions and to the entry of findings that for at least two years, it failed to maintain an order entry system reasonably designed to prevent an improper post-execution allocation of trades. Read More.

November, 2011:

BGB Securities, Inc. (CRD #36716, Arlington, Virginia) submitted a Letter of Acceptance, Waiver and Consent in which the firm was censured and fined $25,000. Read More.

November, 2011:

CP Capital Securities, Inc. (CRD #15029, Miami, Florida) submitted a Letter of Acceptance, Waiver and Consent in which the firm was censured and fined $35,000. Read More.

November, 2011:

Euro Pacific Capital, Inc. (CRD #8361, Westport, Connecticut) submitted a Letter of Acceptance, Waiver and Consent in which the firm was censured and fined $150,000. Read More.

November, 2011:

Legent Clearing LLC, dba Legent Clearing (CRD #117176, Omaha, Nebraska) submitted a Letter of Acceptance, Waiver and Consent in which the firm was censured and fined $200,000. Read More.

November, 2011:

Lone Star Securities, Inc. (CRD #20452, Addison, Texas) submitted a Letter of Acceptance, Waiver and Consent in which the firm was censured and fined $35,000. Read More.

November, 2011:

Newbridge Securities Corporation (CRD #104065, Fort Lauderdale, Florida) submitted a Letter of Acceptance, Waiver and Consent in which the firm was censured and fined $20,000. Read More.

November, 2011:

FINRA Fines Wells Investment Securities $300,000 for Use of Misleading Marketing Materials for REIT Offering

The Financial Industry Regulatory Authority (FINRA) recently announced that it has fined Wells Investment Securities, Inc. $300,000 for using misleading marketing materials in the sale of Wells Timberland REIT, Inc., a non-traded Real Estate Investment Trust (REIT). Read More.

November, 2011:

UBS Financial Services Inc. (CRD #8174, Weehawken, New Jersey) submitted a Letter of Acceptance, Waiver and Consent in which the firm was censured and fined $300,000.

November, 2011:

Brian Wade Boppre (CRD #2778187, Registered Principal, Minot, North Dakota) submitted a Letter of Acceptance, Waiver and Consent in which he was fined $10,000 and suspended from association with any FINRA member in any principal capacity for six months. Read More.

November, 2011:

Nathan Eugene Calhoun (CRD #716257, Registered Representative, Little Rock, Arkansas) submitted a Letter of Acceptance, Waiver and Consent in which he was barred from association with any FINRA member in any capacity. Read More.

November, 2011:

Jaime Xavier Coronado (CRD #4001702, Registered Representative, Friendswood, Texas) submitted an Offer of Settlement in which he was barred from association with any FI
NRA member in any capacity. Read More.

November, 2011:

Corey Vernon Darling (CRD #4005873, Registered Representative, Anacortes, Washington) submitted a Letter of Acceptance, Waiver and Consent in which he was suspended from association with any FINRA member in any capacity for 18 months. In light of Darling’s financial status, no monetary sanctions were imposed. Read More.

November, 2011:

Donald Anthony Duarte Jr. (CRD #2879683, Registered Representative, La Puente, California) was barred from association with any FINRA member in any capacity and ordered to pay $25,000, plus interest, in restitution to a customer. Read More.

November, 2011:

John William Grant (CRD #227512, Registered Principal, Escondido, California) submitted a Letter of Acceptance, Waiver and Consent in which he was barred from association with any FINRA member in any capacity. Read More.

November, 2011:

Frank A. Gutta aka Fazel A. Gutta (CRD #1705545, Registered Representative, Plantation, Florida) submitted a Letter of Acceptance, Waiver and Consent in which he was suspended from association with any FINRA member in any capacity for two years. Read More.

November, 2011:

Tom Douglas Hamsher (CRD #1708793, Registered Supervisor, Webb City, Missouri) submitted a Letter of Acceptance, Waiver and Consent in which he was barred from association with any FINRA member in any capacity. Read More.

November, 2011:

Edgar Rhodes Hauser Jr. (CRD #723243, Registered Representative, Livingston, Alabama) submitted a Letter of Acceptance, Waiver and Consent in which he was barred from association with any FINRA member in any capacity. Read More.

November, 2011:

Joel Arthur Hulke (CRD #2333013, Registered Representative, North Mankato, Minnesota) was barred from association with any FINRA member in any capacity. Read More.

November, 2011:

Steven Krasner aka Steven Zarkhin (CRD #4541263, Registered Representative, Copiague Harbor, New York) submitted a Letter of Acceptance, Waiver and Consent in which he was fined $10,000, ordered to disgorge $18,126.81, payable as partial restitution, to a customer and suspended from association with any FINRA member in any capacity for two months. Read More.

November, 2011:

Gary Harrison Lane (CRD #713745, Registered Representative, Reno, Nevada) submitted a Letter of Acceptance, Waiver and Consent in which he was barred from association with any FINRA member in any capacity. Read More.

November, 2011:

John Michael Leonard (CRD #2254243, Registered Representative, Chicago, Illinois) submitted a Letter of Acceptance, Waiver and Consent in which he was fined $25,000 and suspended from association with any FINRA member in any capacity for two years. Read More.

November, 2011:

Cheryl Ann McMahon (CRD #3009145, Registered Representative, Indianapolis, Indiana) submitted a Letter of Acceptance, Waiver and Consent in which she was barred from association with any FINRA member in any capacity. Read More.

November, 2011:

Mark Mather Mercier (CRD #1884246, Registered Principal, Lutz, Florida) submitted a Letter of Acceptance, Waiver and Consent in which he was fined $5,000 and suspended from association with any FINRA member in any principal capacity for three months. Read More.

November, 2011:

Jason Pedigo (CRD #4952772, Registered Representative, Little Rock, Arkansas) submitted a Letter of Acceptance, Waiver and Consent in which he was barred from association with any FINRA member in any capacity. Read More.

November, 2011:

Ralph Howly Phillips (CRD #2145356, Registered Principal, New Kensington, Pennsylvania)submitted a Letter of Acceptance, Waiver and Consent in which he was barred from association with any FINRA member in any capacity. Read More.

November, 2011:

Krittibas Ray (CRD #3039388, Registered Representative, Albany, California) submitted a Letter of Acceptance, Waiver and Consent in which he was barred from association with any FINRA member in any capacity. Read More.

November, 2011:

Dale David Twardowski (CRD #4056379, Registered Principal, Palm Harbor, Florida) submitted an Offer of Settlement in which he was barred from association with any FINRA member in any capacity. Without admitting or denying the allegations, Twardowski consented to the described sanction and to the entry of findings that he failed to respond to FINRA requests for documents and information, and failed to appear for and provide testimony. (FINRA Case #2009020936801).

November, 2011:

Paul Leon White II (CRD #4669396, Registered Representative, Huntington, New York) submitted an Offer of Settlement in which he was barred from association with any FINRA member in any capacity. Read More.

November, 2011:

Daniel Joseph Voccia II (CRD #2691802, Registered Principal, Calverton, New York) submitted a Letter of Acceptance, Waiver and Consent in which he was barred from association with any FINRA member in any capacity. Read More.

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