[ by Melanie Gretchen ] A Santa Rosa, CA-based registered rep, was charged by FINRA with numerous violations involving sales literature and retirement seminars, among other things, while he was associated first with H. Beck & Co. and then with Questar Capital. Respondent's Background Information. Kim Nazarek entered the securities industry sometime in 1983 and became registered as a Series 7 General Securities Rep in January 1984.  On or about 11/10/05 through July 2008, Nazarek served as a broker H. Beck, Inc.  From June 2009 through December 2009, he joined Questar Capital as a broker. FINRA Findings and Allegations. FINRA's Department of Enforcement categorized its findings against Kim Nazarek within these six Causes of Action:

1. FAILURE TO OBTAIN APPROVAL FROM A REGISTERED PRINCIPAL PRIOR TO THE FIRST USE OF AN ADVERTISEMENT OR PIECE OF SALES LITERATURE.
2. FAILURE TO DISCLOSE PROMINENTLY MEMBER FIRM'S NAME IN SALES LITERATURE.
3. FAILURE TO FILE SALES LITERATURE WITH FINRA ADVERTISING REGULATION DEPARTMENT.
4. FAILURE TO PROVIDE A SOUND BASIS FOR EVALUATING INFORMATION PROVIDED.
5. MAKING FALSE, EXAGGERATED, UNWARRANTED OR MISLEADING STATEMENTS OR CLAIMS TO THE PUBLIC.
6. FAILURE TO PROVIDE INVESTORS WITH CERTAIN REQUIRED INFORMATION.

Specifically, FINRA found that Nazarek:

• conducted retirement seminars that he promoted through invitations distributed to the general public that constituted sales literature, but had failed to obtain approval of a registered firm principal prior to the events.
• during the retirement seminars, Nazarek used and distributed presentations and documents that constituted sales literature, and again failed to obtain a principal's prior approval.
• authored a book that he distributed to some firm customers which also constituted sales literature;  he failed to obtain prior approval from a registered firm principal for this, as well.
• while associated with Questar Capital, Nazarek changed the content of his retirement seminar and used and distributed a new presentation at a seminar that had not been signed off by the firm;  at the time of the presentation, he had submitted the presentation for approval, but the firm did not sign off on the presentation because it requested revisions that Nazarek had not yet provided.  The firm was not aware that he began using the presentation at the seminar without its final signoffs.
• later submitted a revised presentation to the firm, which a firm principal approved - but, because the firm was not aware that Nazarek had already used the presentation, it did not file the presentation with FINRA’s Advertising Regulation Department within 10 business days of first use - as was required.
• similarly used one of his previous presentations on multiple occasions without filing the material, or causing it to be filed, with FINRA’s Advertising Regulation Department.

In addition to the above, Nazarek:

• falsely presented himself to the public and his customers at these seminars as a certified expert on retirement planning and used sales literature that identified him as a Certified Senior Advisor, although he no longer had that designation at the time he presented and distributed the sales literature.
• made false statements in his book that a particular entity was a registered investment advisor (RIA) and registered broker-dealer and member of NASD and SIPC, when, in fact, the entity had never been a registered broker-dealer with NASD or FINRA.
• failed to properly disclose his firm’s name in sales literature that he distributed.
• made presentations that failed to include information that was sufficient to provide a sound basis to evaluate the facts stated about the products and services he promoted.
• discussed registered investment company products in his book, yet failed to advise the investor to consider the investment objectives, risks and  charges/expenses of the investment company carefully before investing;
• failed to explain that the prospectus and, if available, the summary prospectus contain this and other information about the investment company;
• failed to identify a source from which the investor may obtain a prospectus and, if available, a summary prospectus;
• failed to state that the prospectus and, if available, the summary prospectus should be read carefully before investing.
• all-in-all, failed to provide information necessary to a balanced understanding of the potential risks.

FINRA Sanctions. For his efforts (or lack thereof) Nazarek was issued a $25K fine and a full one year suspension. For further details, go to [FINRA Disciplinary Hearing, Case #2008013818701]. and [Disciplinary Actions for February 2012].