As published in the Financial Industry Regulatory Authority (FINRA) disciplinary actions report for April 2012, Samuel B. Marquez of Tucson, Arizona has submitted a Letter of Acceptance, Waiver and Consent in which he was fined $15,000 and suspended from association with any FINRA member in any capacity for seven months. The fine must be paid either immediately upon Marquez’ reassociation with a FINRA member firm following his suspension, or prior to the filing of any application or request for relief from any statutory disqualification, whichever is earlier.

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As published in the Financial Industry Regulatory Authority (FINRA) disciplinary actions report for April 2012, Evert Roy McDowell of Burtonsville, Maryland has submitted a Letter of Acceptance, Waiver and Consent in which he was fined $5,000 and suspended from association with any FINRA member in any capacity for four months. The fine must be paid either immediately upon McDowell’s reassociation with a FINRA member firm following his suspension, or prior to the filing of any application or request for relief from any statutory disqualification, whichever is earlier.

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As published in the Financial Industry Regulatory Authority (FINRA) disciplinary actions report for April 2012, Robert Brian Mercer of Richmond, Virginia has submitted a Letter of Acceptance, Waiver and Consent in which he was fined $5,000 and suspended from association with any FINRA member in any capacity for three months. The fine must be paid either immediately upon Mercer’s reassociation with a FINRA member firm following his suspension, or prior to the filing of any application or request for relief from any statutory disqualification, whichever is earlier.

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As published in the Financial Industry Regulatory Authority (FINRA) disciplinary actions report for April 2012, Gabriel Mero Jr. of Baldwin Park, California was barred from association with any FINRA member in any capacity.

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On April 25, 2012 U.S. Securities and Exchange Commission (SEC) published that a former executive at Morgan Stanley with violating the Foreign Corrupt Practices Act as well as securities laws for investment advisers by secretly acquiring millions of dollars worth of real estate investments for himself and an influential Chinese official who in turn steered business to Morgan Stanley’s funds. The SEC alleges that Garth R. Peterson, who was a managing director in Morgan Stanley’s real estate investment and fund advisory business, had a personal friendship and secret business relationship with the former Chairman of Yongye Enterprise (Group) Co. – a Chinese state-owned entity with influence over the success of Morgan Stanley’s real estate business in Shanghai.

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On April 25, 2012 U.S. Securities and Exchange Commission (SEC) published that a settlement in a $32 million insider trading case filed by the agency last year against a corporate attorney and a Wall Street trader. The SEC alleged that the insider trading occurred in advance of at least 11 merger and acquisition announcements involving clients of the law firm where the attorney – Matthew H. Kluger – worked. He and the trader – Garrett D. Bauer – were linked through a mutual friend now identified as Kenneth T. Robinson, who acted as a middleman to facilitate the illegal tips and trades. Kluger and Bauer used public telephones and prepaid disposable mobile phones to communicate with Robinson in an effort to avoid detection. Robinson, now also charged, cooperated in the SEC’s investigation.

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On April 25, 2012 U.S. Securities and Exchange Commission (SEC) published that the commission issued an Order Instituting Proceedings on March 7, 2012, pursuant to Section 15(b) of the Securities Exchange Act of 1934. The OIP alleges that Aaron M. Glasser (Glasser) was enjoined from future violations of the registration and antifraud provisions of the Securities Act of 1933 and the Exchange Act in SEC v. Aubrey, 8:11-cv-01564-JVS-RNB (C.D. Cal. Feb. 3, 2012), and questions what remedial action is appropriate in the public interest pursuant to Section 15(b) if this allegation is true. The OIP requires that Glasser file an Answer within twenty days of service of the OIP. OIP at 3; 17 C.F.R. § 201.220(b).

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On April 25, 2012 Hong Kong Securities & Futures Commission (SFC) published that the court of First Instance today refused an application by Mr Chan Chun Wai, the director of Billion Global Asset Management Limited, for leave to appeal to the Court of Final Appeal. On 6 September 2011, Chan was convicted of two charges of holding out he was carrying on an asset management business and also issuing a related advertisement, both without a licence. Chan’s convictions were upheld by the Court of First Instance on 14 March 2012.

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On April 25, 2012 U.S. Commodity Futures Trading Commission (CFTC) announced that Judge Richard W. Story of the U.S. District Court for the Northern District of Georgia, on April 19, 2012 entered an emergency order freezing the assets of defendants Robert A. Christy of Milton, Ga., and his company Crabapple Capital Group LLC of Alpharetta, Ga. The order also prohibits the defendants from destroying or altering books and records. The judge set a hearing date for May 1, 2012. The order stems from the filing of a federal court action on April 19, 2012, against the defendants, charging them with foreign currency fraud, misappropriation, and making false statements to the National Futures Association (NFA). Both Christy and Crabapple are registered with the CFTC and are NFA members.

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As published in the Financial Industry Regulatory Authority (FINRA) disciplinary actions report for April 2012, Janet Lynne Gentry of Bluff Dale, Texas has submitted a Letter of Acceptance, Waiver and Consent in which she was fined $5,000 and suspended from association with any FINRA member in any principal capacity for two months. Without admitting or denying the findings, Gentry consented to the described sanctions and to the entry of findings that, as her member firm’s AML compliance officer, CCO and designated principal responsible for firm supervisory controls, she failed to establish and implement policies and procedures reasonably designed to detect and cause the reporting of suspicious activity occurring at a branch of her member firm, and failed to conduct due diligence and obtain the required certification for a foreign correspondent account opened at the branch.

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As published in the Financial Industry Regulatory Authority (FINRA) disciplinary actions report for April 2012, Chad Eugene Hanson of Eagle, Idaho has submitted a Letter of Acceptance, Waiver and Consent in which he was fined $5,000 and suspended from association with any FINRA member in any capacity for 30 days. Without admitting or denying the findings, Hanson consented to the described sanctions and to the entry of findings that he improperly distributed a study guide, answer key and exam to a state long-term care (LTC) insurance continuing education (CE) examination to registered representatives at his member firm and to others not associated with the firm.

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As published in the Financial Industry Regulatory Authority (FINRA) disciplinary actions report for April 2012, Steven Vincent Hazard of Sequim, Washington was barred from association with any FINRA member in any capacity and ordered to pay $47,500, plus interest, in restitution to a customer. The sanctions were based on findings that Hazard borrowed $67,500 total from customers contrary to his member firm’s written policy, repaid $20,000 but has not repaid the remaining $47,500. The findings stated that Hazard borrowed $100,000 from another firm customer when he was the customer’s financial advisor.

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As published in the Financial Industry Regulatory Authority (FINRA) disciplinary actions report for April 2012, William Edward Herlihy of Deltona, Florida has submitted a Letter of Acceptance, Waiver and Consent in which he was fined $50,000 and suspended from association with any FINRA member in any capacity for six months. The fine must be paid either immediately upon Herlihy’s reassociation with a FINRA member firm following his suspension, or prior to the filing of any application or request for relief from any statutory disqualification, whichever is earlier.

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As published in the Financial Industry Regulatory Authority (FINRA) disciplinary actions report for April 2012, Ronald Adam Hollinger of Greenwood, Indiana has submitted a Letter of Acceptance, Waiver and Consent in which he was fined $5,000 and suspended from association with any FINRA member in any capacity for 10 business days. The fine must be paid either immediately upon Hollinger’s reassociation with a FINRA member firm following his suspension, or prior to the filing of any application or request for relief from any statutory disqualification, whichever is earlier.

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As published in the Financial Industry Regulatory Authority (FINRA) disciplinary actions report for April 2012, Mikal Keahey Johnson of Richardson, Texas has submitted an Offer of Settlement in which he was suspended from association with any FINRA member in any capacity for 18 months. Without admitting or denying the allegations, Johnson consented to the described sanction and to the entry of findings that he exercised discretion in the securities accounts of his member firm customers without their written authorization to effect discretionary trades in their firm accounts, or his firm’s prior written acceptance of the accounts as discretionary.

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