FINRA Broker Disciplinary Action Report December 2018
Each month, the agency that regulates the financial industry, FINRA (Financial Industry Regulatory Authority), produces a detailed report that runs down all disciplinary actions recently taken against brokerage firms and brokers. We strongly encourage any investor who suspects their broker and/or broker-dealer of having lost them money on dubious terms to at least skim this report to see if you recognize any names, schemes, products, or securities.
For our part, we like to pick out some of the highlights from each report. Specifically, we’re looking for schemes or abuses that might be more far-reaching than the individual cases brought through the FINRA arbitration process.
Brokers & Brokerages Barred, Suspended, and/or Fined by FINRA
Maxim Group LLC (CRD #120708, New York, New York)
Without admitting or denying the findings, the firm consented to the sanctions and to the entry of findings that it failed to establish and maintain a supervisory system, and establish, maintain and enforce WSPs, reasonably designed to detect and prevent unsuitable short-term trading in UITs. The findings stated that the firm had no procedures to address the suitability concerns raised by short-term trading in UITs. The firm also did not have any surveillance or exception reports designed to detect unsuitable short-term trading of UITs and did not provide brokers or supervisors any training on UITs. Several firm representatives recommended and effected short-term trades of UITs in their customers’ accounts.
Jon Richard Pariser (CRD #2755015, Pacific Grove, California)
Without admitting or denying the findings, Pariser consented to the sanction and to the entry of findings that he refused to provide FINRA with requested documents and information related to allegations that he referred some of his customers to an individual who was not registered and who may have recommended or sold potentially unsuitable securities to them.
John Halsey Buck III (CRD #34383, Beverly Farms, Massachusetts)
Without admitting or denying the findings, Buck consented to the sanction and to the entry of findings that he failed to provide FINRA with requested documents and information in connection with its investigation concerning his potential involvement in certain unapproved private securities transactions.
Chris Raymond Kubiak (CRD #1527367, Milwaukee, Wisconsin)
Without admitting or denying the findings, Kubiak consented to the sanction and to the entry of findings that he converted customer funds. The findings stated that four customers, including three seniors, gave funds to Kubiak totaling approximately $270,000 to invest on their behalf. Kubiak, however, deposited the funds into his personal bank account and then used them for his own personal use, including to gamble and to pay for personal medical bills.
John Scott Simoncic (CRD #1062932, Carlsbad, California)
Without admitting or denying the findings, Simoncic consented to the sanction and to the entry of findings that he willfully violated Section 10(b) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, and violated FINRA Rules 2020, 2111 and 2010 by churning customer accounts, engaging in excessive trading and making unsuitable recommendations involving transactions in non-traditional exchange traded funds (ETFs) in accounts held by two customers, one of whom was a senior investor.
Bruce Arnold Plyer (CRD #1666324, Summit, New Jersey)
Without admitting or denying the findings, Plyer consented to the sanction and to the entry of findings that he failed to appear and provide FINRA with requested on-the-record testimony in connection with an investigation concerning allegations that he engaged in unauthorized trading in customer accounts
For the full FINRA Disciplinary Report, please click here.