Individuals were sanctioned by FINRA, in the following cases:

1. Failed to Disclose Personal Material Information:  $5,000 + 9 Months.
2. BTW, Customer's 1.3 Billion Shares You Helped Sell Were Unregistered.  Oh, Really!  
3. Three FL Principals Crash, Burn Over Flagged Annuity Transactions.
4. RR Transferred $6.5mn from Customer Accounts to His Online Brokerage Account.
5. Go to:   [ FINRA Disciplinary Actions for November ]

    2.  RR (Staten Island, NY) fined and disgorged $10K, suspended 4 months.   RR allegedly participated in customer's sales of more than 1.3 billion shares of unregistered securities in thinly traded low-priced stocks, after failing to establish that these securities or transactions were exempt from registration.  The securities were not registered, nor were they exempt from the registration requirement.  Despite multiple red flags, the RR failed to perform adequate due diligence and wrongfully relied on others to perform the inquiries.   [C-I Note:  That's, of course, presuming he and possibly others - including supervisors - sought the "legit" route for this large and unusual securities position.  It's pretty hard to slip through a sale of this size - even for a "micro-cap" security.]   (FINRA Case #2007011830002)  

    3.  Reg'd Principals (x3) (Stuart and Wellington, FL) each suspended 18 months;  One fined $50K.   Each must requalify as Principals, as well.  The NAC imposed the sanctions following appeal and call for review of an OHO decision.  One Principal (who was fined) failed to supervise his member firm’s timely review of variable annuity transactions and failed to address the breakdown of the compliance department’s Trade Review Team’s review of Red Flag Blotters.  The other two Principals (not fined) created and maintained inaccurate books and records relating to the firm’s variable annuity trading.   (FINRA Case #EAF0400630001)

    4.  RR (Pilot Mtn, NC)  barred from industry.   RR allegedly transferred $6.5 million of customer funds out of bank accounts linked to the firm’s securities accounts into a single online account at another broker-dealer.  The RR had established the online account in a relative’s name, but he had sole control over the online account and conducted significant options trading in the account, using the customers’ funds and engaging in the trading without affected customers’ knowledge or consent.  RR subsequently transferred some of the funds out of the online account to unknown destinations.  Not surprisingly, RR failed to respond to FINRA requests for information.   (FINRA Case #2008015740301)