A Long Island broker-dealer that's been around since 1987 and its owner, who entered the business in 1975, settled FINRA charges related to reporting of customer complaints, review of electronic and written communications with the public, and Rule 3012(a) reviews of written supervisory control procedures. Warren D. Nadel & Company is the firm, and Warren Douglas Nadel is the Registered Principal who, since 1988, has held the titles of President, CEO and CCO for WDNCo. FINRA's Findings of Alleged Violations. With regard to customer complaints, Nadel, the firm, and/or Nadel, the registered principal, allegedly:

• failed to timely report the complaints in quarterly NASD Rule 3070 filings;
• failed to timely update Nadel’s Form U4 with a customer complaint and arbitration.
• failed to maintain WSPs with respect to its financials and financial reporting, and related to the handling or reporting of customer complaints.

The firm and/or registered principal, failed to follow its WSPs for reviewing electronic correspondence, under the following circumstances:

• firm employees conducted business with customers, or potential customers, via email despite written procedures that prohibit the use of email for communicating with customers or potential customers.
• firm was unable to provide evidence that supervisory reviews were conducted for all transactions and all incoming and outgoing written and electronic communications with customers and potential customers by firm RRs.

With regard to annual reviews of WSPs:  

• firm failed to establish, maintain, enforce adequate procedures relating to NASD Rule 3012(a);
• firm failed to ensure that its designated principal test and verify that the firm’s supervisory system is reasonably designed with respect to the activities of its member and associated persons - and to revise additional supervisory procedures where a need is identified by such testing and verification.

FINRA Sanctions. Warren D. Nadel & Company received a $25,000 fine, of which $5,000 was jointly and severally associated with Mr. Nadel.  Warren Nadel received a 15 day full suspension. For further details, go to:  [FINRA AWC #2010023148501].   [Disciplinary Actions for October 2011]