Financial Industry Regulatory Authority (FINRA) issues a report on
disciplinary and other actions involving registered brokers, investment
advisers and brokerage firms every month.
Here are significant Florida related actions for June 2012. Follow this link to the FINRA website for the entire report for the month of June 2012 as well as to access earlier time periods.
Corey Lamar Battey of Clermont, Florida) was
fined $5,000 and suspended from association with any FINRA member in any capacity for six months. The fine shall be due and payable if and when Battey re-enters the securities
industry. The sanctions were based on findings that Battey failed to timely respond to FINRA requests for documents and information.
The suspension is in effect from April 16, 2012, through October 16, 2012.
Jeffrey Wayne Cimbal of Parkland, Florida) 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 principal capacity for five months. Cimbal consented to the described sanctions and to
the entry of findings that he served as his member firm’s CCO and for more than three years was responsible for reviewing transactions to ensure that customers received best execution and to conduct surveillance for trading patterns that could potentially violate FINRA rules or federal securities laws. The findings stated that despite this responsibility, Cimbal did not detect two representatives’ numerous corporate debt transactions that did not provide customers best execution and/or involved interpositioning of an affiliated account. The net result was that the firm and/or accounts of its affiliates realized excessive trading profits. The findings also stated that Cimbal did not take sufficient supervisory action reasonably designed to prevent the trading pattern from continuing during the relevant time period.
The suspension is in effect from May 21, 2012, through October 20, 2012.
Alison Marie Janke of Port Richey, Florida
submitted a Letter of Acceptance, Waiver and Consent in which she was fined $7,500 and suspended from association with any FINRA member in any capacity for six months. Janke consented to the described sanctions and to the entry of findings that she borrowed $100,000 from a customer based upon a personal relationship she had with the customer outside of the broker/ customer relationship, contrary to her member firm’s WSPs that only allowed registered representatives to accept loans from customers under limited circumstances. The firm’s WSPs provided that a registered person must receive prior written firm approval before
accepting a loan based on a personal relationship outside of the broker/customer relationship; Janke did not seek or obtain approval. The findings stated that when Janke became associated with another member firm, the customer transferred her account to the new firm. The findings also stated that in compliance questionnaires, Janke’s new firm
requested that she state whether she had ever borrowed money from a customer, and she falsely answered “no.” The findings also included that when the customer complained
regarding Janke’s failure to timely repay the loan, they entered into a settlement agreement regarding the outstanding amounts owed.
The suspension is in effect from May 7, 2012, through November 6, 2012.
Enrique Roy of Miami Beach, Florida was barred from association with any FINRA member in any capacity. The sanction was based on findings that Roy failed to respond to requests from FINRA for information about an outside
brokerage account at a member firm he had opened on a customer’s behalf. The findings stated that FINRA dismissed the allegation that Roy failed to give his firm notice of an
outside brokerage account.
Alan Jay Davidofsky of Delray Beach, Florida was fined $11,741.78, which represents disgorgement, and barred from association with any FINRA member in any capacity. The sanctions were based on findings that Davidofsky effected unauthorized transactions in a customer’s account, controlled the customer’s Individual Retirement Account (IRA) and made an excessive number of trades in the account, which was inconsistent with the customer’s financial circumstances and investment objectives. The findings stated that Davidofsky implemented this high level of trading to benefit himself, not his customer. Davidofsky had lost valued accounts and was under ever-increasing financial pressure to increase his numbers to meet his member firm’s expectations. The findings also stated that Davidofsky excessively traded the customer’s account with scienter, thereby churning her account.
The decision has been appealed to the NAC, and the sanctions are not in effect pending the appeal.
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