Registered Rep David Conner, while working for Southeast Investments, N.C., Inc., allegedly engaged in outside business activities for compensation, without giving his employer prompt written notification.  Mr. Conner allegedly sold over $20 million in Equity Indexed Annuities (EIAs).  Interestingly, when Conner first registered with Southeast, he did notify the firm that he was engaged in the sale of EIAs, and he signed an Equity Indexed Annuities Verification Form indicating that he currently was selling EIAs. 

However, Conner added in his own handwriting that he had not sold an indexed annuity since a certain date, and that he would forward any future applications to the firm for approval.  FINRA found that this attestation to be false because Conner continued to sell EIAs without
submitting the applications to the firm for approval.  Conner allegedly made similar false statements in an annual compliance certification, by affirming that all annuity applications (including variable and equity index) had been sent and would be sent to an OSJ for processing and approval. 

For his efforts, Mr. Conner was fined $15K and suspended for 2 years.  This is FINRA Case #200902086580.   [April 2011 Disc. Actions]