A broker in Brooklyn, along with 2 associates formed a company with the hope of operated it as an OSJ (Office of Supervisory Jurisdiction).  Each owned a 33% stake, and Eric Axel, the broker in this case, served as President/Managing Director. Eric Axel of Brooklyn, NY, entered the industry in 2003 and by 2008 had been with 4 firms.  It was at J.P. Turner & Company, from October 2003 through December 2004, that he borrowed $50K from a customer - without notifying or seeking approval of his firm. The borrowing violated firm policy. Axel later discussed raising funds with some of his JP Turner associates.  Word got out, and the firm’s CCO explicitly stated that Axel did not qualify to raise money with his customers.  Axel then left JP Turn and joined Bathgate Capital Partners (nka GVC Capital);  he stayed through the next 10 months. While there he borrowed, through the company, $50K from a second customer.  That too violated Bathgate's policies.  Needless to say, he once again didn't notify the firm, nor seek its permission.  Axel also lied on Bathgate's compliance certification, saying he never loaned money to, nor borrowed money from, a customer.   Axel and his 2 co-owners never repaid the 2nd loan, even after extending it several times. Shortly after taking out the 2nd loan, they took yet another loan from a 3rd customer - this time for $100K.   The customer probably was not aware that they had an outstanding, overdue loan from another customer.  This 3rd customer, eventually, was only partially repaid on his $100K loan.  The company, Pearson Darby, never became an OSJ, and never succeeded. FINRA Sanctions. Axel agreed to a $10K fine and a one year suspension.   [Disciplinary Actions for November] For further details, go to:   [FINRA AWC #2007010889202].