[ by Howard Haykin ] A New York-based broker-dealer was charged by FINRA with having caused another firm to violate Regulation S-P, in connection with its planned hiring of several brokers from that firm. Background of NY Broker-Dealer. HFP Capital Markets LLC, is the successor firm of AM Capital LLC, which initially registered with FINRA and the SEC in September 1998.  In late 2008, HFP, through its parent company, purchased AM Capital in a 100% ownership change.  The firm changed its name to HFP Capital Markets, LLC on 12/1/08.  HFP currently employs about 54 RRs and 29 non-registered fingerprint persons. FINRA Findings and Allegations. In December 2008, in anticipation of hiring a number of registered reps from another broker-dealer, HFP Capital Markets allegedly encouraged and helped the RRs to give non-public confidential information belonging to that other broker-dealer’s customers to HFP, their prospective employer.  At no time were customers given proper notice of the disclosure, and customers were not afforded a reasonable opportunity to opt out of the disclosure. The non-public confidential information allegedly provided to HFP included the following:   (i) customers’ social security numbers;  (ii) account numbers;  (iii) driver’s license numbers; (iv) dates of birth;  and,  (v) financial information. HFP also allegedly helped transfer the customer information to its clearing firm.  Such actions caused the other broker-dealer to violate Regulation S-P;  HFP Capital Markets, in turn, violated FINRA Rule 2010. FINRA Sanctions. HFP Capital Markets, for having allegedly committed the above rule violations, agreed to pay a $65K fine.  [FINRA Disciplinary Actions for June 2012] For further details, go to:   [FINRA AWC #2009019320201].