RRBDLaw.com: MAY FINRA Cases Analyzed by Bill Singer

May 21, 2009

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Veteran regulatory lawyer Bill Singer's analysis of recent FINRA cases is now online at http://RRBDLAW.com.  Make sure to click on the links to read Bill's commentary about these matters and more.
John Patrick Walsh   Walsh misappropriated stock and mutual fund shares valued at $2,057,248.52 from his member firm, sold the stock and made personal use of the proceeds. Walsh misappropriated $198,574.50 from a credit union affiliated with his firm by procuring a line of credit and creating false holdings in stock at his firm to secure the loan. BARRED
Robert Kyle Stewart Stewart accepted $445,914.13 from an elderly public customer for investment in a corporation he organized and owned, and failed to issue the customer any ownership interest. Rather than using the funds as intended, Stewart converted the funds to his own use and benefit by depositing the funds into the corporation's bank account and paid personal expenses directly from the account or transferred funds to his personal bank account, thereby converting the funds without the customer's knowledge or consent.  BARRED
Joseph Aloyisius Pramer III Pramer altered customer telephone records at his member firm by deleting or inaccurately updating the numbers to slow down other registered representatives at his firm that he believed would be assigned to call his customers after he resigned. By changing customer telephone numbers, Pramer caused his member firm to create and maintain inaccurate books and records.  FINED $5,000; Suspended 30 Business Days
Charles James Moni Moni recommended concentrated positions in the security of a clinical-stage drug development company to customers of his member firm. The concentrated positions were unsuitable for Moni's customers in light of their financial profile, personal circumstances and limited ability to withstand loss.  FINED $10,000; Suspended 3 months
Frederick Lee Mathis Mathis used his manager's user identification and password to make unauthorized credits to his brokerage account at his member firm and to his bank account at his firm's bank affiliate. Mathis credited a total of $1,205 from the firm account used to provide credits to customers to which he was not entitled. Also, he failed to respond to FINRA requests for documents and information. BARRED
Matthew T. McKinney  McKinney was assigned a corporate credit card by an affiliate of his member firm and, without the knowledge, authorization or consent of the affiliate or the firm,  used the credit card to purchase merchandise for his personal benefit and purchased additional merchandise for his personal benefit which was billed directly by the vendors to the affiliate; and sold some of the merchandise that he obtained and retained the proceeds of the sales.  McKinney failed to respond to FINRA requests for information.   BARRED
Nathan James Lorne  Lorne made unauthorized withdrawals totaling approximately $12,101 from an organization for which he was treasurer, and hid the withdrawals from the organization's officers and submitted false financial reports to the organization. Lorne converted the funds for his own personal use, except for a small amount that was for legitimate expense reimbursement, but repaid the organization after he was confronted about the unauthorized withdrawals. He engaged in outside business activities and failed to provide prompt written notice to his member firm, and made misrepresentations to his firm regarding any outside business activity. BARRED
David Garcia Garcia directed an individual to telephone the insurance affiliate of his member firm for a client history interview and to impersonate an insurance customer to obtain approval of life insurance policies for the customer prior to the deadline date.   FINED $5,000; Suspended 30 business days

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