The following information regarding broker misconduct and disciplinary activities taken against California stockbrokers was released by the Financial Industry Regulatory Authority (FINRA) in August and September 2010:
Michael Frederick Siegel, formerly with BMA Securities and FSC Securities was fined $30,000 and suspended from association with any FINRA member in any capacity for two consecutive six-month terms in connection with the sale of securities to customers that were unsuitable and also for participating in private securities transactions without approval from his employing firm.
Michael Alcide Poutre, formerly of Brookstone Securities and also Maxxtrade was suspended from association with any FINRA member in any capacity for 30 days for charging excessive markups in connection with the sale of corporate bonds. According to FINRA, because the corporate bonds were readily available and involved large transactions of higher priced securities, a percentage rate of less than 3 percent was appropriate.
Craig Lee Randall with Planmember Securities Corporation and formerly with National Planning Corporation was censured, fined $35,000 and suspended from association with any FINRA member in any capacity for seven months in connection with the use of presentation materials that contained misleading, exaggerated and unwarranted statements that violated NASD advertising rules.
Steven Craig Vanderhoof, formerly with Linear Financial Services in Santa Ana, California, was fined $10,000 and suspended from association with any FINRA member in any capacity for 30 business days in connection with the misleading use of a website and television advertisements which marketed an “equity repositioning strategy” to investors that involved investing home equity loan proceeds in mutual funds with the goal of having the investment returns more than offset the cost of the home loan.
Thomas George Fullerton, formerly with Liberty Partners Financial Services in Bakersfield, California, was barred from association with any FINRA member in any capacity in connection with allegations that he intentionally or recklessly excessively traded customers’ accounts without their authorization.
Christopher Anthony Lee, formerly with LPL Financial, IFMG Securities, and Citigroup Global Markets, was named as a respondent in a FINRA complaint alleging that he altered customer documents causing annuity companies to mail customer checks to his home address so that he could deposit the checks in his personal bank account and use the funds for his own purposes.
Hansel Clarence Cua Lee, formerly with Morgan Stanley & Co. and also Banc of America Securities was named as a respondent in a FINRA complaint alleging that he misappropriated customer funds by depositing the proceeds from customer securities sales in a checking account he opened in the customer’s name without the customer’s consent or knowledge.