Universal Lease Programs commonly relate to "timeshares" of resort accommodations.  For many of the 7 disciplined brokers, they resulted in a "ticket out of the industry."  The programs often are coupled with pre-arranged service agreements with a leasing agent (who theoretically could rent the timeshares to others), and a guaranteed safe investment that paid the investor a high, fixed rate of return.  The programs more often are shams - and Ponzi schemes - that paid selling brokers huge commissions. 

Sales of these unregistered securities have been pursued by securities regulators for years - from the SEC to state securities commissions.  So it's now time for FINRA to complete the loop in those cases involving persons registered with member firms.  [For other cases, click onto:   [ FINRA Disciplinary Actions for November ]

    1.  Reg'd Rep (S. Charleston, WV) fined, disgorged $7K, suspended 4 months.   Allegedly participated in the sale of Universal Lease Programs (ULPs) without first notifying member firm in writing - nor disclosing on annual compliance questionnaire.  RR earned all of $2,000 in commissions.  (FINRA Case #2009016709009)

    2.  Reg'd Principal (Cerritos, CA) fined, disgorged $9K, suspended 4 months.  Same as #1, but earned $4,000 in commissions.  (FINRA Case #2009016709008)

    3.  Reg'd Rep (Bolivia, NC) fined $15.5K, suspended 8 months.  Same as #1.  In addition, RR failed to timely respond to FINRA requests for information and documents.  (FINRA Case #2009016709002)

    4.  Reg'd Rep (Evansvill, IN) fined, disgorged $20K, suspended 3 months.  Same as #1, but earned $14,733 in commissions.  (FINRA Case #2009016709005)

    5.  Reg'd Principal (Ontario, CA) barred from industry.   Same as #1, but with these differences:  this Principal had requested permission to sell ULP's outside of firm, but was denied.  He made $30,270 in commissions.  (FINRA Case #2009016709007)

    6.  Reg'd Rep (Evansville, IN) fined, disgorged $38.5K, suspended 1 year.  Same as #1, although RR earned over $86,000 in commissions, and later repaid $52,500 to customers.   (FINRA Case #2007009342201)

    7.  Reg'd Rep (Brookville, IN) fined, disgorged $15.5K, suspended 3 months.  Same as #1, but earned $10,311 in commissions.  (FINRA Case #2009016709006)