Steven M. Netzel (CRD #2863170, Gilbert, Arizona)

An AWC was issued in which Steven M. Netzel (CRD #2863170) was assessed a deferred fine of $10,000, suspended from association with any FINRA member in all capacities for four months, and ordered to pay $9,788.80, plus interest, in deferred partial restitution to customers. The amount of partial restitution is equal to the portion of the commissions received by Netzel for alternative investment purchases by two customers. Some customers will not receive partial restitution because they previously settled their claims with Netzel’s member firm. Without admitting or denying the findings, Steven M. Netzel consented to the sanctions and to the entry of findings that he caused his firm’s books and records to be inaccurate by submitting altered customer documents to the firm related to purchases of alternative investments. The findings stated that, in connection with at least six customers’ alternative investment purchases, Netzel submitted investor profiles that he knew reflected inaccurate information. There were indications on the face of the documents that information had been whited-out and written over to change customer information, such as inflating customers’ net worth and liquid net worth. By increasing customers’ net worth, their percentage holdings in alternative investments were reduced, and Steven M. Netzel was able to obtain the necessary approval for alternative investment purchases. The findings also stated that Steven M. Netzel made unsuitable recommendations to customers that resulted in the customers being overconcentrated in alternative investments that were unsuitable for them based on their net worth, investment objectives and risk tolerance. The suspension is in effect from April 17, 2023, through August 16, 2023. (FINRA Case #2018060897301)