A Registered Principal in Medina, Ohio agreed to a $35K fine and 2-year suspension to settle FINRA charges he engaged in an outside business activity involving a company he owned and operated, which was a marketing and advertising business through which he sought to generate leads for RRs and insurance agents.  The company’s primary form of marketing apparently was mass mailings - usually postcards - containing false and misleading statements to thousands of potential investors. 

    Telephone Scripts Not Any Better.   The broker, Peter Bonnell III also developed and directed the use of multiple false and misleading telephone operator scripts that were used in the company’s call center to respond to potential investors.  These misleading marketing practices led to several state regulatory actions, which the broker willfully failed to disclose on a timely basis to his Form U4. 

    Statutorily Disqualified.   FINRA further noted that the broker was associated with a FINRA-member firm and acted in a registered capacity while he was subject to statutory disqualification.  The broker also allegedly provided false information, failed to disclose material information, and misrepresented material information on the firm’s annual compliance questionnaires concerning his outside business activity and regulatory actions. The broker also allegedlt failed to provide prompt and complete written notice to the firm of his outside business activities involving another insurance marketing firm he operated after closing the other company. 

Finally, in his capacity as a Principal, Bonnell allegedly failed to adequately supervise certain RR's at the broker-dealer to ensure that they filed accurate and timely updates disclosing state regulatory actions and outside business activity. 

This is FINRA Case #2007009073001.   [Disciplinary Actions for February]