FINRA Enforcement Actions – September, 2011

Fraud, Misrepresentation, Theft, Mismanagement, 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.

September, 2011:

iTRADEdirect.com Corp. (CRD® #18281, Boca Raton, Florida) was expelled from FINRA® membership. Read More.

September, 2011:

Investors Capital Corp. (CRD #30613, Lynnfield, Mass) submitted a Letter of Acceptance, Waiver and Consent in which the firm was censured, fined $200,000 and consented to undertake a comprehensive review of its policies and procedures concerning suitability of CMOs, and the firm’s Director of Compliance shall certify in writing to FINRA within 60 days that it has engaged in a review and has in place policies and procedures designed to ensure compliance with its suitability obligation pertaining to CMOs. Read More.

September, 2011:

Thomas Michael Aretz (CRD #1083897, Registered Representative, Destin, Florida) was barred from association with any FINRA member in any capacity and ordered to pay $251,907, plus interest, in restitution to customers. Read More.

September, 2011:

Fidelity Brokerage Services LLC (CRD #7784, Smithfield, Rhode Island) submitted a Letter of Acceptance, Waiver and Consent in which the firm was censured, fined $375,000, and agreed to make an offer to repurchase illiquid auction rate securities (ARS) from certain customers who purchased ARS via the firm’s website between February 13, 2008, and March 4, 2008. Read More.

September, 2011:

Veritrust Financial, LLC (CRD #106594, Austin, Texas) submitted a Letter of Acceptance, Waiver and Consent in which the firm was censured, fined $90,000 and ordered to pay $34,105.40, plus interest, in restitution to customers. Read More.

September, 2011:

Devin Raj Anand (CRD #5160369, Registered Representative, Calabasas, California) was barred from association with any FINRA member in any capacity. Read More.

September, 2011:

Scott J. Baklenko (CRD #4632949, Registered Representative, Seattle, Washington) submitted a Letter of Acceptance, Waiver and Consent in which he was fined $20,000 and suspended from association with any FINRA member in any capacity for 20 months. Read More.

Vishal Birsingh (CRD #4420546, Registered Principal, New Hampton, New York) submitted a Letter of Acceptance, Waiver and Consent in which he was suspended from association with any FINRA member in any capacity for one year. Read More.

September, 2011:

Richard Harold Byerly (CRD #848070, Registered Representative, Chester Springs, Pennsylvania) submitted an Offer of Settlement in which he was suspended from association with any FINRA member in any capacity for two years and ordered to pay $30,000 in partial restitution to customers. Read More.

September, 2011:

Ronald Dean Clark (CRD #1086724, Registered Representative, Tampa, 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 capacity for 15 business days. Read More.

September, 2011:

Timothy Charles Cross (CRD #1452750, Registered Principal, Washougal, Washington) submitted a Letter of Acceptance, Waiver and Consent in which he was fined $10,000, suspended from association with any FINRA member in any principal or supervisory capacity for six months, and required to requalify as a general securities principal by examination before association with any member firm in a principal or supervisory capacity. Read More.

September, 2011:

Matthew Crump (CRD #1924664, Registered Principal, Houston, Texas) submitted a Letter of Acceptance, Waiver and Consent in which he was barred from association with any FINRA member in any capacity. Read More.

Bradford Keith Dent (CRD #1588966, Registered Principal, Cordova, Tennessee) was barred from association with any FINRA member in any capacity. Read More.

September, 2011:

Larry Richard Gregory (CRD #2308559, Registered Representative, Norfolk, Virginia) submitted a Letter of Acceptance, Waiver and Consent in which he was barred from associa
tion with any FINRA member in any capacity. Read More.

September, 2011:

Jan David Henderson (CRD #2401845, Registered Rep., Midway, Utah) submitted a Letter of Acceptance, Waiver and Consent in which he was barred from association with any FINRA member in any capacity. Read More.

September, 2011:

Charles William Kromer Jr. (CRD #1068867, Registered Rep., Cincinnati, Ohio) submitted an Offer of Settlement in which he was barred from association with any FINRA member in any capacity. Read More.

September, 2011:

Victoria Elizabeth McGee-Harris (CRD #1183259, Registered Representative, St. Louis, Missouri) submitted a Letter of Acceptance, Waiver and Consent in which she was barred from association with any FINRA member in any capacity. Read More.

September, 2011:

John Thomas Pappas (CRD #4240283, Registered Representative, Helena, 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.

September, 2011:

Lazaro E. Salado (CRD #2899323, Registered Representative, Miami, Florida) was barred from association with any FINRA member in any capacity. Read More.