A Registered Principal with Synergy Investment Group, who served as a branch manager, was barred, in part, for being lax toward violations of firm policy related to private securities transactions.  Eric Lichtenstein of Middletown, NJ, intentionally provided false testimony to FINRA during an on-the-record interview regarding his knowledge of, and participation in, private securities transactions within the branch.  He solicited and sold some $234,000 in private placements to branch customers without his member firm’s prior written
approval.

FINRA further found that Lichtenstein had failed to reasonably supervise his branch office.  He knew that firm management had been asked if it would permissible for personnel at Lichtenstein's branch to sell private placements, and the response was no - that such transactions were prohibited.  Nevertheless, upon learning that an RR at the branch was selling other private placements, Lichtenstein failed to inform the firm’s compliance department of such sales.

FINRA further found evidence of private placement sales in branch electronic mail that Lichtenstein was responsible for reviewing.  Accordingly, he knew, or should have known through email review, of red flags indicating the sale of additional private placements - but did not conduct additional investigation and did not inform the firm’s compliance department of the red flags.

Once again, Lichtenstein was barred from the industry.   This is FINRA Case #2009018339703.   [Disciplinary Action for June 2011]