Active Investigations

March 21, 2022 – An OHO decision became final in which Norton was barred from association with any FINRA member in all capacities and ordered to pay disgorgement in the amount of $240,360, plus prejudgment interest. The sanctions were based on the findings that Norton willfully violated Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and FINRA Rules 2022 2020 and 2010 by manipulating the …

March 16, 2022 – An AWC was issued in which Koch was barred from association with any FINRA member in all capacities. Without admitting or denying the findings, Koch consented to the sanction and to the entry of findings that he refused to provide documents and information requested by FINRA in connection with its investigation into an amended Form U5 filed by his member firm. The findings stated that the …

March 15, 2022 – An AWC was issued in which Caplin was barred from association with any FINRA member in all capacities. Without admitting or denying the findings, Caplin consented to the sanction and to the entry of findings that he failed to produce information and documents requested by FINRA in connection with an investigation into the circumstances giving rise to two Uniform Termination Notice for Securities Industry Registration (Form …

March 11, 2022 – An Order Accepting Offer of Settlement was issued in which McMullen was barred from association with any FINRA member in all capacities. Without admitting or denying the allegations, McMullen consented to the sanction and to the entry of findings that she failed to provide a complete response to FINRA’s requests for information and documents in connection with its investigation into the circumstances of her termination from …

March 11, 2022 – An AWC was issued in which Matossian was barred from association with any FINRA member in all capacities. Without admitting or denying the findings, Matossian consented to the sanction and to the entry of findings that he converted $2,639.64 of his employer’s funds. The findings stated that while Matossian was employed by his member firm’s affiliate bank, he and his wife used personal bank credit cards …

March 3, 2022 – An Office of Hearing Officers (OHO) decision became final in which Scheible was barred from association with any FINRA member in all capacities. The sanction was based on findings that Scheible failed to comply with FINRA’s requests for information and documents and failed to provide on-the-record testimony during an investigation. The findings stated that FINRA initiated the investigation after receiving two incident reports from a test …

March 3, 2022 – An AWC was issued in which Droeg was barred from association with any FINRA member in all capacities. Without admitting or denying the findings, Droeg consented to the sanction and to the entry of findings that he converted assets of a trust by using his authority as trustee to surrender a variable annuity owned by the trust and then transferring over $878,000 from the trust’s bank …

March 23, 2022 – An AWC was issued in which the firm was censured and fined $100,000. Without admitting or denying the findings, the firm consented to the sanctions and to the entry of findings that it overstated its advertised daily trading volume on a private subscription-based provider of market data. The findings stated that the firm’s overstatements resulted from a flaw in the advertising logic of its third-party order …

March 22, 2022 – An AWC was issued in which the firm was censured and fined $400,000. Without admitting or denying the findings, the firm consented to the sanctions and to the entry of findings that it failed to report short interest positions. The findings stated that the firm set up trading accounts for its parent company, however the firm’s legacy systems were not updated to capture the accounts in …

March 22, 2022– An AWC was issued in which the firm was censured, fined $45,000, and ordered to pay partial restitution of $40,000, plus interest. Without admitting or denying the findings, the firm consented to the sanctions and to the entry of findings that it negligently omitted to tell seven investors in an offering that the issuer failed to timely make required filings with the SEC, including filing audited financial …

March 21, 2022 – An AWC was issued in which the firm was censured, fined $70,000, and ordered to pay $29,840, plus interest, in partial restitution to customers. The amount of restitution being paid to customers is equal to the commissions the customers paid in connection with their investments. Three of the customers at issue in this AWC will not receive partial restitution because they previously settled their claims with …

March 18, 2022 – An AWC was issued in which the firm was censured, fined $150,000, ordered to pay $250,710.41, plus interest, in restitution to certain customers who purchased an alternative mutual fund, and required to establish and implement policies, procedures, and internal controls reasonably designed to address and remediate the issues pertaining to alternative mutual funds identified in the AWC. Without admitting or denying the findings, the firm consented …