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Yes. Direct relationship.
0001: Big money sighting SKTO. E.g., Rubicon Partners, LP.
For a likely clue on why the PTB stubbornly resist the will of a large majority of Americans in regard to MMJ and MJ in spite of the plant's proven therapeutic and medicinal value, google: stanfor wikileaks cartel.
It shouldn't really surprise anyone who follows the money that high-level corruption often drives policy. Real or pretend wars and trade in MJ (while it's illegal) are big business, among the biggest. Over 1% of world GDP derives from with trade in illegal "substances." That's a temptation some people in high places can't resist.
Yes. Note also the wide margins, sometimes overwhelming margins, of legal approval for MMJ whether by state legislature or plebiscite. Only in Arizona was it close. The chart also shows popular approval for MMJ in red and blue states alike. MMJ support cuts across the political spectrum. Nationally, poll numbers reflect sizable majority suppport for MMJ. Even bigger majorities want the states alone to be the sole determinators of MMJ.
0001: Wording of letter telegraphs Q2 issuance imminent.
Note wording: "We are preparing to issue our Q2 2013 financials which, as you will see, show that the company has continued its steady growth."
Compare then: "We are preparing our Q2 2013 financials" with the actual "We are preparing to issue our Q2 2013 financials."
Significant difference in meaning. The addition of "as you will see" to the statement heightens tone of immediacy, as well.
Reasonable deduction: SKTO Q2 2013 financials are all done. Next up, submission to OTCM
CSTI has been sanctioned repeatedly for naked shorting, shorting without locating eligible shares to borrow. CSTI also sanctioned for such things as reporting inaccurate short sale data to NASD, failing to identify a transaction as buy, sell, or short, and reporting shorts sales as long sales.
Regulators censured, sanctioned, and/or fined CSTI 22 times. Some of the fines are very large.CSTI's tactic of flashing, on and off, huge sizes of phantom shares at ask to dispirit buying and staunch rallies is not surprising given their shameful history. MMs are perceived by many investors as crooked. CSTI only feeds those perceptions. These are a list of the violations of FINRA or SEC rules.
FINRA DOCUMENT
BrokerCheck Report
CANACCORD GENUITY INC.
Section Title
Report Summary
Firm History
CRD# 1020
1
8
Firm Profile
2 - 7
Page(s)
Firm Operations
9 - 21
Disclosure Events
22
..............................................................................................................................................
This type of disclosure event involves (1) a final, formal proceeding initiated by a regulatory authority (e.g., a state securities agency, self-regulatory organization, federal regulator such as the U.S. Securities and Exchange Commission, foreign financial regulatory body) for a violation of investment-related rules or regulations; or (2) a revocation or suspension of the authority of a brokerage firm or its control affiliate to act as an attorney, accountant or federal contractor.
Disclosure 1 of 22
Reporting Source:
Regulator
23
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User Guidance
Initiated By:
FINRA
Principal Sanction(s)/Relief
Sought:
Other
Other Sanction(s)/Relief
Sought:
N/A
Date Initiated:
12/31/2012
Docket/Case Number:
2011025431701
Principal Product Type:
No Product
Other Product Type(s):
Allegations:
FINRA RULE 2010, NASD RULES 2711(C), 2711(I): THE FIRM'S WRITTEN
SUPERVISORY PROCEDURES (WSPS) PERMITTED ITS RESEARCH
DEPARTMENT TO SEND PORTIONS OF A RESEARCH REPORT (REDACTED
REPORT) TO THE SUBJECT COMPANY BEFORE PUBLICATION, SOLELY TO
VERIFY THE ACCURACY OF INFORMATION IN THOSE SECTIONS. THE
FIRM'S WSPS REQUIRED THE FIRM'S RESEARCH ANALYSTS TO SEND
BOTH THE REDACTED REPORT AND THE ENTIRE DRAFT REPORT TO THE
COMPLIANCE DEPARTMENT. THE COMPLIANCE STAFF WOULD THEN
REVIEW THE REDACTED REPORT FOR NON-FACTUAL INFORMATION
(SUCH AS ESTIMATES AND ANALYST'S OPINIONS) AND RETURN IT TO THE
ANALYST WITH INSTRUCTIONS ON WHAT, IF ANY, LANGUAGE NEEDED TO
BE REMOVED PRIOR TO TRANSMITTAL TO THE COVERED COMPANY.
WHEN THE RESEARCH ANALYST TRANSMITTED THE FINAL REDACTED
REPORT TO THE SUBJECT COMPANY, THE FIRM'S PROCEDURES
REQUIRED THE COMPLIANCE DEPARTMENT TO BE COPIED ON THIS
COMMUNICATION. THE WSP'S, HOWEVER, DID NOT REQUIRE THE
COMPLIANCE DEPARTMENT TO FOLLOW UP, EVEN ON A SPOT CHECK
BASIS, TO DETERMINE IF THE RESEARCH ANALYST REMOVED THE
NON-FACTUAL INFORMATION IDENTIFIED BY COMPLIANCE. FURTHER, THE
FIRM'S WSPS AND SUPERVISORY SYSTEM DID NOT PROVIDE FORMAL
TRAINING PROCEDURES OR SPECIFIC GUIDANCE TO ASSIST THE FIRM'S
RESEARCH ANALYSTS AND COMPLIANCE STAFF IN DETERMINING WHAT
LANGUAGE WAS PERMISSIBLE TO SEND TO SUBJECT COMPANIES IN THE
REDACTED REPORTS. THE FIRM'S RESEARCH ANALYSTS SENT 27
REDACTED REPORTS TO COVERED COMPANIES FOR VERIFICATION OF
FACTUAL ACCURACY. IN 26 OF THOSE INSTANCES, HOWEVER, THE FIRM
SENT REDACTED REPORTS CONTAINING FROM 2 TO 20 PIECES OF
NON-FACTUAL INFORMATION TO THE SUBJECT COMPANIES. IN SEVEN OF
THE REDACTED REPORTS, THE FIRM'S RESEARCH ANALYSTS FAILED TO
REMOVE OR EDIT SOME OF THE NON-FACTUAL STATEMENTS THAT WERE
IDENTIFIED BY THE FIRM'S COMPLIANCE DEPARTMENT. MOREOVER, IN
ALL 26 OF THE REDACTED REPORTS, THE FIRM'S COMPLIANCE
DEPARTMENT FAILED TO IDENTIFY EVERY NON-FACTUAL STATEMENT.
Current Status:
Final
24
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User Guidance
Other Sanction(s)/Relief
Sought:
N/A
Resolution Date:
12/31/2012
Resolution:
Other Sanctions Ordered:
UNDERTAKING
Sanction Details:
WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTED
TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS;
THEREFORE IT IS CENSURED, FINED $100,000 AND UNDERTAKES TO
REVIEW ITS SUPERVISORY SYSTEM AND PROCEDURES CONCERNING
RESEARCH REPORTS AND THE SUPERVISION OF RESEARCH ANALYSTS
FOR COMPLIANCE WITH FINRA RULES AND THE FEDERAL SECURITIES
LAWS AND REGULATIONS. WITHIN 90 DAYS OF THE ISSUANCE OF THIS
AWC, THE FIRM'S CHIEF COMPLIANCE OFFICER WILL CERTIFY TO FINRA IN
WRITING THAT THAT THE FIRM HAS COMPLETED ITS REVIEW AND THAT IT
CURRENTLY HAS IN PLACE SYSTEMS AND PROCEDURES REASONABLY
DESIGNED TO ACHIEVE COMPLIANCE WITH THOSE RULES, LAWS AND
REGULATIONS. FINE PAID IN FULL ON 1/11/2013.
Does the order constitute a
final order based on
violations of any laws or
regulations that prohibit
fraudulent, manipulative, or
deceptive conduct?
No
Sanctions Ordered:
Censure
Monetary/Fine $100,000.00
Acceptance, Waiver & Consent(AWC)
i
Reporting Source:
Firm
Initiated By:
FINRA
Date Initiated:
12/31/2012
Allegations:
NASD CONDUCT RULE 2711, FINRA RULE 2010: FROM AT LEAST JULY 2009
- MARCH 2011, CANACCORD'S RESEARCH ANALYSTS SENT
PRE-PUBLICATION EXCERPTS OF RESEARCH REPORTS CONTAINING
FACTS INTERSPERSED WITH OPINIONS, ESTIMATES, CONCLUSIONS AND
OTHER NON-FACTUAL INFORMATION TO THE COMPANIES COVERED BY
THE REPORTS. CANACCORD ALSO FAILED TO ADOPT AND IMPLEMENT
WRITTEN SUPERVISORY PROCEDURES REASONABLY DESIGNED TO
ACHIEVE COMPLIANCE WITH RULES RELATING TO THE ISSUANCE OF
RESEARCH REPORTS.
Current Status:
Final
25
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User Guidance
Principal Sanction(s)/Relief
Sought:
Censure
Other Sanction(s)/Relief
Sought:
FINED $100,000
Docket/Case Number:
2011025431701
Principal Product Type:
No Product
Other Product Type(s):
Resolution Date:
12/31/2012
Resolution:
Other Sanctions Ordered:
UNDERTAKINGS
Sanction Details:
WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTED
TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS; IT IS
CENSURED, FINED $100,000 AND UNDERTOOK TO REVIEW ITS
SUPERVISORY SYSTEM AND PROCEDURES CONCERNING RESEARCH
REPORTS AND THE SUPERVISION OF RESEARCH ANALYSTS WITHIN 90
DAYS OF THE ISSUANCE OF THE AWC.
Sanctions Ordered:
Censure
Monetary/Fine $100,000.00
Acceptance, Waiver & Consent(AWC)
Disclosure 2 of 22
i
Reporting Source:
Regulator
Initiated By:
FINRA
Date Initiated:
05/09/2012
Docket/Case Number:
2009020627301
Principal Product Type:
Other
Other Product Type(s):
EQUITY SECURITY
Allegations:
SEC RULE 203(B)(1) OF REGULATION SHO - CANACCORD GENUITY INC.
ACCEPTED SHORT SALE ORDERS IN AN EQUITY SECURITY FROM
ANOTHER PERSON, OR EFFECTED SHORT SALES IN AN EQUITY SECURITY
FOR ITS OWN ACCOUNT, WITHOUT BORROWING THE SECURITY, OR
ENTERING INTO A BONA FIDE ARRANGEMENT TO BORROW THE
SECURITY; OR HAVING REASONABLE GROUNDS TO BELIEVE THAT THE
SECURITY COULD BE BORROWED SO THAT IT COULD BE DELIVERED ON
THE DATE DELIVERY IS DUE; AND DOCUMENTING COMPLIANCE WITH SEC
RULE 203(B)(1) OF REGULATION SHO.
Current Status:
Final
26
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User Guidance
Principal Sanction(s)/Relief
Sought:
Other Sanction(s)/Relief
Sought:
Other Product Type(s):
EQUITY SECURITY
Resolution Date:
05/09/2012
Resolution:
Other Sanctions Ordered:
Sanction Details:
WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTED
TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS;
THEREFORE, THE FIRM IS CENSURED AND FINED $7,500.
FINE PAID IN FULL ON JUNE 18, 2012.
Does the order constitute a
final order based on
violations of any laws or
regulations that prohibit
fraudulent, manipulative, or
deceptive conduct?
No
Sanctions Ordered:
Censure
Monetary/Fine $7,500.00
Acceptance, Waiver & Consent(AWC)
i
Reporting Source:
Firm
Initiated By:
FINRA
Date Initiated:
05/09/2012
Docket/Case Number:
20090206273
Principal Product Type:
Other
Allegations:
SEC RULE 203(B)(1) OF REGULATION SHO: ON 12 OCCASIONS DURING THE
REVIEW PERIOD OF JULY 1, 2009 - SEPTEMBER 30, 2009, THE FIRM
ACCEPTED A SHORT SALE ORDER IN AN EQUITY SECURITY FROM ITS
CANADIAN AFFILATE (NON-FINRA MEMBER CANADIAN BROKER/DEALER,
OR EFFECTED A SHORT SALE IN AN EQUITY SECURITY FOR ITS OWN
ACCOUNT, WITHOUT BORROWING THE SECURITY, OR ENTERING INTO A
BONA-FIDE ARRANGEMENT TO BORROW THE SECURITY; OR HAVING
REASONABLE GROUNDS TO BELIEVE THAT THE SECURITY COULD BE
BORROWED SO IT COULD BE DELIVERED ON THE DELIVERY DATE; AND
DOCUMENTING COMPLAINCE WITH SEC RULE 203(B)(1)OF REGULATION
SHO.
Current Status:
Final
27
.
www.finra.org/brokercheck
User Guidance
Principal Sanction(s)/Relief
Sought:
Censure
Other Sanction(s)/Relief
Sought:
FINE OF $7.500.
Principal Product Type:
Other
Other Product Type(s):
EQUITIES - LISTED & OTC
Resolution Date:
05/09/2012
Resolution:
Other Sanctions Ordered:
Sanction Details:
WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTED
TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS; IT IS
CENSURED, FINED $7,500.00.
Sanctions Ordered:
Censure
Monetary/Fine $7,500.00
Acceptance, Waiver & Consent(AWC)
Disclosure 3 of 22
i
Reporting Source:
Regulator
Initiated By:
FINRA
Date Initiated:
03/22/2012
Docket/Case Number:
2009017004501
Principal Product Type:
Other
Allegations:
FINRA RULES 2010, 6380(A)(A), 7450, NASD RULES 2110, 4632(A), 6955(A) -
CANACCORD GENUITY INC. TRANSMITTED REPORTS TO THE ORDER
AUDIT TRAIL SYSTEM (OATS) THAT CONTAINED ERRONEOUS ROUTE
REPORTS, INCORRECT OATS REPORT TYPES, AN INCORRECT
EXPIRATION TIMESTAMP, INCORRECT DESTINATION CODES, AND
INCORRECT MEMBER TYPE CODES. THE FIRM FAILED TO TRANSMIT
ALMOST ALL OF ITS REPORTABLE ORDER EVENTS (ROES) TO OATS FOR
ONE OF ITS MARKET PARTICIPANT IDS (MPID) ON NUMEROUS BUSINESS
DAYS THAT IT WAS REQUIRED TO TRANSMIT DURING THAT REVIEW
PERIOD. THE FIRM FAILED, WITHIN 90 SECONDS AFTER EXECUTION, TO
TRANSMIT TO THE FINRA/NASDAQ TRADE REPORTING FACILITY (FNTRF)
LAST SALE REPORTS OF TRANSACTIONS IN DESIGNATED SECURITIES.
THIS CONDUCT CONSTITUTES A PATTERN OR PRACTICE OF LATE
REPORTING WITHOUT EXCEPTIONAL CIRCUMSTANCES IN VIOLATION OF
NASD RULE 2110 AND FINRA RULE 2010.
Current Status:
Final
28
.
www.finra.org/brokercheck
User Guidance
Principal Sanction(s)/Relief
Sought:
Other Sanction(s)/Relief
Sought:
Principal Product Type:
Other
Other Product Type(s):
DESIGNATED SECURITIES
Resolution Date:
03/22/2012
Resolution:
Other Sanctions Ordered:
Sanction Details:
WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTED
TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS;
THEREFORE, THE FIRM IS CENSURED AND FINED $40,000.
FINE PAID IN FULL APRIL 5, 2012.
Does the order constitute a
final order based on
violations of any laws or
regulations that prohibit
fraudulent, manipulative, or
deceptive conduct?
No
Sanctions Ordered:
Censure
Monetary/Fine $40,000.00
Acceptance, Waiver & Consent(AWC)
i
Reporting Source:
Firm
Initiated By:
FINRA
Date Initiated:
03/22/2012
Allegations:
MATTER NO. 20090170045 - FINRA RULE 7450: IN 19 INSTANCES THE FIRM
TRANSMITTED REPORTS TO OATS THAT CONTAINED INACCURATE,
INCOMPLETE, OR IMPROPERLY FORMATTED DATA. MATTER NO.
20090173675 - NASD RULE 6955(A) & FINRA RULE 7450: THE FIRM FAILED
TO TRANSMIT 12,889 REPORTABLE ORDER EVENTS TO OATS FOR ONE OF
ITS MARKET PARTICIPANT IDS ON 628 BUSINESS DAYS. MATTER NO.
20090170351 - NASD RULE 4632(A), FINRA RULE 6380A(A), NASD RULE 2110
& FINRA RULE 2010: THE FIRM FAILED WITHIN 90 SECONDS AFTER
EXECUTION TO TRANSMIT TO THE FINRA/NASDAQ TRADE REPORTING
FACILITY 113 LAST SALE REPORTS OF TRANSACTIONS IN DESIGNATED
SECURITIES. THIS CONDUCT ALSO CONSTITUTES A PATTERN OR
PRACTICE OF LATE REPORTING WITHOUT EXCEPTIONS CIRCUMSTANCES.
Current Status:
Final
29
.
www.finra.org/brokercheck
User Guidance
Principal Sanction(s)/Relief
Sought:
Censure
Other Sanction(s)/Relief
Sought:
FINE OF $40,000: $7,500 FOR OATS VIOLATIONS IN MATTER 20090170045;
$17,500 FOR OATS VIOLATIONS IN MATTER NO. 20090170351; AND $7,500
FOR TRADE REPORTING VIOLATIONS IN MATTER NO. 20100231669.
Date Initiated:
03/22/2012
Docket/Case Number:
20090170045
Principal Product Type:
Other
Other Product Type(s):
UNSPECIFIED SECURITIES
Resolution Date:
03/22/2012
Resolution:
Other Sanctions Ordered:
Sanction Details:
WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTED
TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS; IT IS
CENSURED, FINED $40,000.
Sanctions Ordered:
Censure
Monetary/Fine $40,000.00
Acceptance, Waiver & Consent(AWC)
Disclosure 4 of 22
i
Reporting Source:
Regulator
Allegations:
FINRA RULE 2010, NASD RULES 2110, 2711(C), 2711(H)(12), 2711(I), 3010:
THE FIRM FAILED TO ADOPT AND IMPLEMENT WRITTEN SUPERVISORY
PROCEDURES (WSPS) REASONABLY DESIGNED TO SUPERVISE ITS
RESEARCH ANALYSTS AND ENSURE THAT ITS RESEARCH REPORTS
COMPLIED WITH NASD RULE 2711. SPECIFICALLY, ALTHOUGH THE FIRM
MAINTAINED SOME RELEVANT WSPS, THOSE PROCEDURES DID NOT
PROVIDE ANY REAL GUIDANCE TO ITS EMPLOYEES ABOUT THE SPECIFIC
STEPS THAT THEY NEEDED TO TAKE TO ACHIEVE COMPLIANCE WITH
NASD RULE 2711. FOR EXAMPLE, THE WSPS REQUIRED THAT ALL PUBLIC
APPEARANCES MADE BY FIRM ANALYSTS BE APPROVED BY THE
DIRECTOR OF RESEARCH, THAT THE APPROPRIATE DISCLOSURES BE
MADE TO THE MEDIA OUTLET, THAT A RECORD DOCUMENTING THE
DISCLOSURES PROVIDED TO THE MEDIA BE MAINTAINED AND THAT THE
FIRM'S MARKETING DEPARTMENT RECEIVE A COPY OF SUCH
DISCLOSURE. THE WSPS MADE THE RESEARCH ANALYST RESPONSIBLE
FOR MEETING THESE OBLIGATIONS BUT PROVIDED LITTLE OR NO
GUIDANCE ON HOW THESE TASKS COULD BE SUCCESSFULLY CARRIED
OUT OR SUPERVISED. THE WSPS ALSO CONTAINED PROVISIONS
BROADLY DESCRIBING WHAT PORTIONS OF DRAFT RESEARCH REPORTS
COULD AND COULD NOT BE PROVIDED TO COVERED COMPANIES. THEY
FAILED, HOWEVER, TO PROVIDE SPECIFIC GUIDANCE TO FIRM
EMPLOYEES REGARDING THE MANNER IN WHICH THESE REQUIREMENTS
WERE TO BE FULFILLED. THE FIRM'S WSPS PERMITTED THE RESEARCH
DEPARTMENT TO SEND SECTIONS OF A RESEARCH REPORT TO THE
SUBJECT COMPANY BEFORE PUBLICATION TO VERIFY THE ACCURACY OF
INFORMATION IN THOSE SECTIONS PROVIDED THAT A COMPLETE DRAFT
OF THE RESEARCH REPORT WAS FIRST PROVIDED TO THE COMPLIANCE
DEPARTMENT. HOWEVER, THE FIRM SENT RESEARCH REPORT
EXCERPTS TO A SUBJECT COMPANY BEFORE THE FIRM'S COMPLIANCE
DEPARTMENT HAD RECEIVED A COMPLETE DRAFT OF THE REPORT.
FURTHER, IN ONE OF THOSE INSTANCES, THE COMPLETE DRAFT WAS
NOT SENT TO THE COMPLIANCE DEPARTMENT. IN CONNECTION WITH 29
PUBLIC APPEARANCES BY ITS RESEARCH ANALYSTS, THE FIRM FAILED
TO RETAIN RECORDS SUFFICIENT TO DEMONSTRATE COMPLIANCE BY
THOSE ANALYSTS WITH THE DISCLOSURE REQUIREMENTS OF NASD
RULE 2711(H).
Current Status:
Final
30
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User Guidance
Initiated By:
FINRA
Principal Sanction(s)/Relief
Sought:
Other
Other Sanction(s)/Relief
Sought:
N/A
Date Initiated:
04/18/2011
Docket/Case Number:
2009016251601
Principal Product Type:
No Product
Other Product Type(s):
GUIDANCE ON HOW THESE TASKS COULD BE SUCCESSFULLY CARRIED
OUT OR SUPERVISED. THE WSPS ALSO CONTAINED PROVISIONS
BROADLY DESCRIBING WHAT PORTIONS OF DRAFT RESEARCH REPORTS
COULD AND COULD NOT BE PROVIDED TO COVERED COMPANIES. THEY
FAILED, HOWEVER, TO PROVIDE SPECIFIC GUIDANCE TO FIRM
EMPLOYEES REGARDING THE MANNER IN WHICH THESE REQUIREMENTS
WERE TO BE FULFILLED. THE FIRM'S WSPS PERMITTED THE RESEARCH
DEPARTMENT TO SEND SECTIONS OF A RESEARCH REPORT TO THE
SUBJECT COMPANY BEFORE PUBLICATION TO VERIFY THE ACCURACY OF
INFORMATION IN THOSE SECTIONS PROVIDED THAT A COMPLETE DRAFT
OF THE RESEARCH REPORT WAS FIRST PROVIDED TO THE COMPLIANCE
DEPARTMENT. HOWEVER, THE FIRM SENT RESEARCH REPORT
EXCERPTS TO A SUBJECT COMPANY BEFORE THE FIRM'S COMPLIANCE
DEPARTMENT HAD RECEIVED A COMPLETE DRAFT OF THE REPORT.
FURTHER, IN ONE OF THOSE INSTANCES, THE COMPLETE DRAFT WAS
NOT SENT TO THE COMPLIANCE DEPARTMENT. IN CONNECTION WITH 29
PUBLIC APPEARANCES BY ITS RESEARCH ANALYSTS, THE FIRM FAILED
TO RETAIN RECORDS SUFFICIENT TO DEMONSTRATE COMPLIANCE BY
THOSE ANALYSTS WITH THE DISCLOSURE REQUIREMENTS OF NASD
RULE 2711(H).
Resolution Date:
04/18/2011
Resolution:
Other Sanctions Ordered:
UNDERTAKINGS
Does the order constitute a
final order based on
violations of any laws or
regulations that prohibit
fraudulent, manipulative, or
deceptive conduct?
No
Sanctions Ordered:
Censure
Monetary/Fine $22,500.00
Acceptance, Waiver & Consent(AWC)
31
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www.finra.org/brokercheck
User Guidance
Other Sanctions Ordered:
UNDERTAKINGS
Sanction Details:
WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTED
TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS;
THEREFORE IT IS CENSURED, FINED $22,500 AND WILL COMPLY WITH THE
FOLLOWING UNDERTAKINGS: THE FIRM SHALL UNDERTAKE TO REVIEW
ITS SUPERVISORY SYSTEM AND PROCEDURES CONCERNING RESEARCH
REPORTS AND THE SUPERVISION OF RESEARCH ANALYSTS FOR
COMPLIANCE WITH FINRA RULES AND THE FEDERAL SECURITIES LAWS
AND REGULATIONS. WITHIN 90 DAYS OF THE ISSUANCE OF THIS AWC,
THE FIRM'S CHIEF COMPLIANCE OFFICER WILL CERTIFY TO FINRA IN
WRITING THAT THE FIRM HAS COMPLETED ITS REVIEW AND THAT IT
CURRENTLY HAS IN PLACE SYSTEMS AND PROCEDURES REASONABLY
DESIGNED TO ACHIEVE COMPLIANCE WITH THOSE RULES, LAWS AND
REGULATIONS. THE CERTIFICATION, ALONG WITH THE CURRENT
PROCEDURES, MUST BE SUBMITTED TO FINRA. ALTHOUGH FINRA STAFF
MAY REVIEW THE REVISED PROCEDURES, SAID REVIEW SHALL IN NO
WAY CONSTITUTE AN APPROVAL OF THE REVISED PROCEDURES. THE
FAILURE OF FINRA STAFF TO ALERT THE FIRM TO ANY DEFICIENCIES IN
THE REVISED PROCEDURES SHALL NOT PRECLUDE FINRA FROM
INSTITUTING A SUBSEQUENT DISCIPLINARY ACTION AS A RESULT OF
DEFICIENCIES IN THE REVISED PROCEDURES.
i
Reporting Source:
Firm
Initiated By:
FINRA
Date Initiated:
04/18/2011
Docket/Case Number:
2009016251601
Principal Product Type:
No Product
Other Product Type(s):
Allegations:
FINRA RULE 2010, NASD RULE 2110, 2711,3010: THE FIRM FAILED TO
ESTABLISH AND MAINTAIN A SUPERVISORY SYSTEM AND ESTABLISH,
MAINTAIN, AND ENFORCE WRITTEN SUPERVISORY PROCEDURES
("WSPS") REASONABLY DESIGNED TO ACHIEVE COMPLIANCE WITH NASD
CONDUCT RULE 2711. THE FIRM ALSO FAILED IN CERTAIN INSTANCES TO
MAINTAIN RECORDS OF PUBLIC APPEARANCES BY ANALYSTS
EVIDENCING THAT REQUIRED DISCLOSURES WERE MADE. FURTHER, IN
CERTAIN INSTANCES, THE CANACCORD'S RESEARCH ANALYSTS FAILED
TO DELIVER DRAFT RESEARCH REPORTS TO THE FIRM'S COMPLIANCE
DEPARTMENT BEFORE SENDING EXCERPTS FROM THOSE REPORTS TO
SUBJECT COMPANIES.
Current Status:
Final
32
.
www.finra.org/brokercheck
User Guidance
Principal Sanction(s)/Relief
Sought:
Censure
Other Sanction(s)/Relief
Sought:
FINE OF $22,500
Other Product Type(s):
Resolution Date:
04/18/2011
Resolution:
Other Sanctions Ordered:
UNDERTAKINGS
Sanction Details:
WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTED
TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS; IT IS
CENSURED, FINED $22,500 AND UNDERTOOK TO REVIEW ITS
SUPERVISORY SYSTEM AND PROCEDURES CONCERNING RESEARCH
REPORTS AND THE SUPERVISION OF RESEARCH ANALYSTS WITHIN 90
DAYS OF THE ISSUANCE OF THE AWC.
Sanctions Ordered:
Censure
Monetary/Fine $22,500.00
Acceptance, Waiver & Consent(AWC)
Disclosure 5 of 22
i
Reporting Source:
Regulator
Allegations:
FINRA RULE 2010, NASD RULES 2110, 3010: THE FIRM WAS AN ACTIVE
PARTICIPANT IN THE U.S. PIPE MARKET YET FAILED TO HAVE IN PLACE
REASONABLE INFORMATION BARRIERS PROCEDURES WITH RESPECT TO
THE FIRM'S PIPE BUSINESS. THE FIRM FAILED TO HAVE A REASONABLE
SYSTEM IN PLACE TO TRACK EMPLOYEES WHO WERE BROUGHT "OVER
THE WALL" ON SPECIFIC PIPE TRANSACTIONS. WHILE THE FIRM HAD A
PROCEDURE IN PLACE REQUIRING THE MAINTENANCE OF A "WALL
CROSSING LOG," DURING THE REVIEW PERIOD, IT DID NOT MAINTAIN
SUCH A LOG. INSTEAD, THE FIRM STORED INFORMATION ABOUT "OVER
THE WALL" EMPLOYEES IN A COMPUTER FILE THAT WAS NOT READILY
ACCESSIBLE TO PERSONS IN COMPLIANCE WITH RESPONSIBILITIES TO,
FOR EXAMPLE, MONITOR TRADING AND REVIEW EMAILS OF EMPLOYEES
BROUGHT OVER THE WALL ON INVESTMENT BANKING MATTERS. IN
ADDITION, THE FIRM FAILED TO MAINTAIN A SPECIFIC LOG OF EMPLOYEE
TRANSACTIONS IN SECURITIES ON THE FIRM'S GREY LIST AND/OR
RESTRICTED LIST. FURTHER, DURING THE SAME TIME PERIOD, THE FIRM
WAS UNABLE TO PROVIDE DOCUMENTATION EVIDENCING THAT IT HAD
INVESTIGATED EMPLOYEE TRADING IN GREY LIST SECURITIES TO
DETERMINE WHETHER EMPLOYEES HAD MISUSED MATERIAL,
NON-PUBLIC INFORMATION. THE FIRM FAILED TO HAVE A REASONABLE
SYSTEM IN PLACE TO MONITOR THE FLOW OF INFORMATION
CONCERNING PIPE TRANSACTIONS TO POTENTIAL INVESTORS.
SPECIFICALLY, WHILE THE FIRM'S PROCEDURES REQUIRED SALES
PERSONS TO OBTAIN VERBAL AGREEMENTS FROM POTENTIAL
INVESTORS TO KEEP INFORMATION CONCERNING PIPE TRANSACTIONS
CONFIDENTIAL AND REFRAIN FROM TRADING ON SUCH INFORMATION,
THE FIRM DID NOT REASONABLY ENSURE THAT THE PROCEDURE WAS
FOLLOWED OR DOCUMENT THAT SUCH VERBAL AGREEMENTS WERE
OBTAINED. MOREOVER, THE INFORMATION THAT WAS MAINTAINED
CONCERNING THE DISCLOSURE OF INFORMATION ON PIPE
TRANSACTIONS WAS NOT USED FOR SUPERVISORY OR COMPLIANCE
PURPOSES. IN ADDITION TO THE DEFICIENCIES IN THE FIRM'S
INFORMATION BARRIERS PROCEDURES, THE FIRM'S SYSTEM FOR
REVIEW OF EMAIL CORRESPONDENCE WAS UNREASONABLE. WHILE THE
FIRM'S PROCEDURES REQUIRED THE REVIEW OF A SAMPLE OF EMAIL
COMMUNICATIONS, THE SAMPLE INCLUDED MAIL BOXES FOR USERS NO
LONGER EMPLOYED AT THE FIRM AND PERMITTED COMPLIANCE
DEPARTMENT EMPLOYEES, AT THEIR DISCRETION, TO MARK EMAILS AS
REVIEWED BASED SOLELY ON A REVIEW OF THE SENDER'S NAME,
RECIPIENT'S NAME, AND SUBJECT LINE OF AN EMAIL. STATED
DIFFERENTLY, THE FIRM PERMITTED "BULK REVIEW" OF EMAILS WITHOUT
ANY WRITTEN GUIDELINES INFORMING COMPLIANCE STAFF OF THE
PARAMETERS FOR SUCH REVIEW. DURING THE REVIEW PERIOD, THE
FIRM ALSO UTILIZED AN INTERNET CHAT ROOM SYSTEM THAT ALLOWED
MEMBERS OF THE FIRM'S BUSINESS UNITS, INCLUDING BUT NOT LIMITED
TO, THE INVESTMENT BANKING AND RESEARCH DEPARTMENTS TO
COMMUNICATE AND/OR REVIEW EACH OTHER'S COMMUNICATIONS. THE
FIRM DID NOT HAVE ANY WRITTEN PROCEDURES IN PLACE RELEVANT TO
MONITORING INTERNAL COMMUNICATIONS BETWEEN THE FIRM'S
BUSINESS UNITS ON THE INTERNAL CHAT ROOM SYSTEM AND COULD
NOT DOCUMENT THAT IT ACTIVELY MONITORED SUCH COMMUNICATION.
Current Status:
Final
33
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User Guidance
Initiated By:
FINRA
Principal Sanction(s)/Relief
Sought:
Other
Other Sanction(s)/Relief
Sought:
N/A
Date Initiated:
01/24/2011
Docket/Case Number:
2008012243901
Principal Product Type:
Other
Other Product Type(s):
PIPE TRANSACTIONS
NON-PUBLIC INFORMATION. THE FIRM FAILED TO HAVE A REASONABLE
SYSTEM IN PLACE TO MONITOR THE FLOW OF INFORMATION
CONCERNING PIPE TRANSACTIONS TO POTENTIAL INVESTORS.
SPECIFICALLY, WHILE THE FIRM'S PROCEDURES REQUIRED SALES
PERSONS TO OBTAIN VERBAL AGREEMENTS FROM POTENTIAL
INVESTORS TO KEEP INFORMATION CONCERNING PIPE TRANSACTIONS
CONFIDENTIAL AND REFRAIN FROM TRADING ON SUCH INFORMATION,
THE FIRM DID NOT REASONABLY ENSURE THAT THE PROCEDURE WAS
FOLLOWED OR DOCUMENT THAT SUCH VERBAL AGREEMENTS WERE
OBTAINED. MOREOVER, THE INFORMATION THAT WAS MAINTAINED
CONCERNING THE DISCLOSURE OF INFORMATION ON PIPE
TRANSACTIONS WAS NOT USED FOR SUPERVISORY OR COMPLIANCE
PURPOSES. IN ADDITION TO THE DEFICIENCIES IN THE FIRM'S
INFORMATION BARRIERS PROCEDURES, THE FIRM'S SYSTEM FOR
REVIEW OF EMAIL CORRESPONDENCE WAS UNREASONABLE. WHILE THE
FIRM'S PROCEDURES REQUIRED THE REVIEW OF A SAMPLE OF EMAIL
COMMUNICATIONS, THE SAMPLE INCLUDED MAIL BOXES FOR USERS NO
LONGER EMPLOYED AT THE FIRM AND PERMITTED COMPLIANCE
DEPARTMENT EMPLOYEES, AT THEIR DISCRETION, TO MARK EMAILS AS
REVIEWED BASED SOLELY ON A REVIEW OF THE SENDER'S NAME,
RECIPIENT'S NAME, AND SUBJECT LINE OF AN EMAIL. STATED
DIFFERENTLY, THE FIRM PERMITTED "BULK REVIEW" OF EMAILS WITHOUT
ANY WRITTEN GUIDELINES INFORMING COMPLIANCE STAFF OF THE
PARAMETERS FOR SUCH REVIEW. DURING THE REVIEW PERIOD, THE
FIRM ALSO UTILIZED AN INTERNET CHAT ROOM SYSTEM THAT ALLOWED
MEMBERS OF THE FIRM'S BUSINESS UNITS, INCLUDING BUT NOT LIMITED
TO, THE INVESTMENT BANKING AND RESEARCH DEPARTMENTS TO
COMMUNICATE AND/OR REVIEW EACH OTHER'S COMMUNICATIONS. THE
FIRM DID NOT HAVE ANY WRITTEN PROCEDURES IN PLACE RELEVANT TO
MONITORING INTERNAL COMMUNICATIONS BETWEEN THE FIRM'S
BUSINESS UNITS ON THE INTERNAL CHAT ROOM SYSTEM AND COULD
NOT DOCUMENT THAT IT ACTIVELY MONITORED SUCH COMMUNICATION.
Resolution:
Acceptance, Waiver & Consent(AWC)
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User Guidance
Resolution Date:
01/24/2011
Resolution:
Other Sanctions Ordered:
Sanction Details:
WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTED
TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS;
THEREFORE IT IS CENSURED AND FINED $40,000.
Does the order constitute a
final order based on
violations of any laws or
regulations that prohibit
fraudulent, manipulative, or
deceptive conduct?
No
Sanctions Ordered:
Censure
Monetary/Fine $40,000.00
Acceptance, Waiver & Consent(AWC)
i
Reporting Source:
Firm
Initiated By:
FINRA
Principal Sanction(s)/Relief
Sought:
Censure
Other Sanction(s)/Relief
Sought:
FINE OF $40,000.
Date Initiated:
01/24/2011
Docket/Case Number:
20080122439-01
Principal Product Type:
No Product
Other Product Type(s):
Allegations:
NASD RULE 3010, 2110, FINRA RULE 2010: THE FIRM FAILED TO HAVE
REASONABLE SUPERVISORY SYSTEMS AND PROCEDURES CONCERNING
THE INTERNAL FLOW OF INFORMATION AS IT RELATED TO THE FIRM'S
PIPE BUSINESS. THE FIRM FAILED TO HAVE A REASONABLE SYSTEM IN
PLACE FOR THE REVIEW OF ITS EMAIL CORRESPONDENCE AND
COMMUNICATIONS ON ITS INTERNAL CHAT ROOM SYSTEM.
Current Status:
Final
Resolution Date:
01/24/2011
Resolution:
Sanctions Ordered:
Censure
Monetary/Fine $40,000.00
Acceptance, Waiver & Consent(AWC)
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User Guidance
Other Sanctions Ordered:
Sanction Details:
WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, THE FIRM
CONSENTED TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF
FINDINGS; THEREFORE, THE FIRM IS CENSURED AND FINED $40,000.
Sanctions Ordered:
Monetary/Fine $40,000.00
Disclosure 6 of 22
i
Reporting Source:
Regulator
Initiated By:
FINRA
Principal Sanction(s)/Relief
Sought:
Other Sanction(s)/Relief
Sought:
Date Initiated:
09/28/2009
Docket/Case Number:
2008013221101
Principal Product Type:
Other
Other Product Type(s):
UNSPECIFIED SECURITIES
Allegations:
SEC RULES 10B-10, 203(B)(1) OF REGULATION SHO - CANACCORD ADAMS
INC. FAILED TO PROVIDE WRITTEN NOTIFICATION DISCLOSING TO ITS
CUSTOMERS ITS CORRECT CAPACITY IN TRANSACTIONS; AND WHEN IT
ACTED AS PRINCIPAL FOR ITS OWN ACCOUNT, FAILED TO PROVIDE
WRITTEN NOTIFICATION DISCLOSING TO ITS CUSTOMERS THAT IT WAS A
MARKET MAKER IN EACH SUCH SECURITY. THE FIRM ACCEPTED SHORT
SALE ORDERS IN EQUITY SECURITIES FROM ANOTHER PERSON, OR
EFFECTED SHORT SALES IN EQUITY SECURITIES FOR ITS OWN ACCOUNT
WITHOUT BORROWING THE SECURITY, OR ENTERING INTO A BONA FIDE
ARRANGEMENT TO BORROW THE SECURITY; OR HAVING REASONABLE
GROUNDS TO BELIEVE THAT THE SECURITY COULD BE BORROWED SO
THAT IT COULD BE DELIVERED ON THE DATE DELIVERY IS DUE; AND
DOCUMENTING COMPLIANCE WITH SEC RULE 203(B)(1) OF REGULATION
SHO.
Current Status:
Final
Resolution Date:
09/28/2009
Resolution:
Does the order constitute a
final order based on
violations of any laws or
regulations that prohibit
fraudulent, manipulative, or
deceptive conduct?
No
Acceptance, Waiver & Consent(AWC)
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User Guidance
Other Sanctions Ordered:
Sanction Details:
WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTED
TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS;
THEREFORE, THE FIRM IS CENSURED AND FINED $12,500.
Does the order constitute a
final order based on
violations of any laws or
regulations that prohibit
fraudulent, manipulative, or
deceptive conduct?
No
Sanctions Ordered:
Censure
Monetary/Fine $12,500.00
i
Reporting Source:
Firm
Initiated By:
FINRA
Principal Sanction(s)/Relief
Sought:
Censure
Other Sanction(s)/Relief
Sought:
FINE OF $12,500.
Date Initiated:
09/28/2009
Docket/Case Number:
20080132211-01
Principal Product Type:
Other
Other Product Type(s):
UNSPECIFIED SECURITIES.
Allegations:
SEC RULES 10B-10, 203(B)(1) OF REGULATION SHO - THE FIRM FAILED TO
PROVIDE WRITTEN NOTIFICATION DISCLOSING TO ITS CUSTOMERS ITS
CORRECT CAPACITY IN TRANSACTIONS; AND WHEN IT ACTED AS
PRINCIPAL FOR ITS OWN ACCOUNT, FAILED TO PROVIDE WRITTEN
NOTIFICATION DISCLOSING TO ITS CUSTOMERS THAT IT WAS A MARKET
MAKER IN EACH SUCH SECURITY. THE FIRM ACCCEPTED SHORT SALE
ORDERS IN EQUITY SECURITIES FROM ANOTHER PERSON, OR EFFECTED
SHORT SALES IN EQUITY SECURITIES FOR ITS OWN ACCOUNT WITHOUT
BORROWING THE SECURITY, OR ENTERING INTO A BONA FIDE
ARRAGEMENT TO BORROW THE SECURITY; OR HAVING REASONABLE
GROUNDS TO BELIEVE THAT THE SECURITY COULD BE BORROWED SO
THAT IT COULD BE DELIVERED ON THE DATE DELIVERY IS DUE; AND
DOCUMENTING COMPLIANCE WITH SEC RULE 203(B)(1) OF REGULATION
SHO.
Current Status:
Final
37
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User Guidance
Resolution Date:
09/28/2009
Resolution:
Other Sanctions Ordered:
Sanction Details:
WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, THE FIRM
CONSENTED TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF
FINDINGS; THEREFORE, THE FIRM IS CENSURED AND FINED $12,500.
Summary:
SATISFIED 10/13/2009.
Sanctions Ordered:
Censure
Monetary/Fine $12,500.00
Acceptance, Waiver & Consent(AWC)
Disclosure 7 of 22
i
Reporting Source:
Regulator
Initiated By:
FINRA
Principal Sanction(s)/Relief
Sought:
Other Sanction(s)/Relief
Sought:
Date Initiated:
10/13/2008
Docket/Case Number:
2006005557102
Principal Product Type:
Other
Other Product Type(s):
UNSPECIFIED SECURITIES
Allegations:
SEC RULE 10B-10 AND NASD RULE 6420(E):
THE FIRM REPORTED TO NASDAQ MARKET CENTER 123 LAST SALE
REPORTS OF TRANSACTIONS IN ELIGIBLE SECURITIES IT WAS NOT
REQUIRED TO REPORT; IT FAILED TO PROVIDE WRITTEN NOTIFICATION
DISCLOSING TO ITS CUSTOMER ITS CORRECT CAPACITY IN THE
TRANSACTION, ERRONEOUSLY PROVIDED WRITTEN NOTIFICATION
DISCLOSING TO ITS CUSTOMER THAT THE TRANSACTION WAS EXECUTED
AT AN AVERAGE PRICE, AND ERRONEOUSLY PROVIDED WRITTEN
NOTIFICATION DISCLOSING TO ITS CUSTOMER THAT THE FIRM WAS A
MARKET MAKER.
Current Status:
Final
Resolution Date:
10/13/2008
Resolution:
Does the order constitute a
final order based on
violations of any laws or
regulations that prohibit
fraudulent, manipulative, or
deceptive conduct?
No
Acceptance, Waiver & Consent(AWC)
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User Guidance
Other Sanctions Ordered:
Sanction Details:
WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, RESPONDENT
MEMBER FIRM CONSENTED TO THE DESCRIBED SANCTIONS AND TO THE
ENTRY OF FINDINGS; THEREFORE, FIRM IS CENSURED AND FINED $7,000.
Does the order constitute a
final order based on
violations of any laws or
regulations that prohibit
fraudulent, manipulative, or
deceptive conduct?
No
Sanctions Ordered:
Censure
Monetary/Fine $7,000.00
i
Reporting Source:
Firm
Initiated By:
FINRA
Principal Sanction(s)/Relief
Sought:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanction(s)/Relief
Sought:
CENSURE
Date Initiated:
10/13/2008
Docket/Case Number:
2006005557102
Principal Product Type:
Equity - OTC
Other Product Type(s):
EQUITY - LISTED
Allegations:
EXCEPTIONS TO SEC RULE 10B-10 AND NASD RULE 6420(E): THE FIRM
REPORTED TO NASDAQ MARKET CENTER 123 LAST SALE REPORTS OF
TRANSACTIONS IN ELIGIBLE SECURITIES IT WAS NOT REQUIRED TO
REPORT; IT FAILED TO PROVIDE WRITTEN NOTIFICATION DISCLOSING TO
ITS CUSTOMER ITS CORRECT CAPACITY IN THE TRANSACTION,
ERRONEOUSLY PROVIDED WRITTEN NOTIFICATION DISCLOSING TO ITS
CUSTOMER THAT THE TRANSACTION WAS EXECUTED AT AN AVERAGE
PRICE, AND ERRONEOUSLY PROVIDED WRITTEN NOTIFICATION
DISCLOSING TO ITS CUSTOMER THAT THE FIRM WAS A MARKET MAKER.
Current Status:
Final
Resolution Date:
10/13/2008
Resolution:
Sanctions Ordered:
Censure
Monetary/Fine $7,000.00
Acceptance, Waiver & Consent(AWC)
39
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User Guidance
Other Sanctions Ordered:
Sanction Details:
WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, THE FIRM
CONSENTED TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF
FINDINGS; THEREFORE, THE FIRM IS CENSURED AND FINED $7,000.
Summary:
SATISFIED 10/24/2008
Sanctions Ordered:
Monetary/Fine $7,000.00
Disclosure 8 of 22
i
Reporting Source:
Regulator
Initiated By:
NASDAQ STOCK MARKET
Principal Sanction(s)/Relief
Sought:
Other Sanction(s)/Relief
Sought:
Date Initiated:
10/13/2008
Docket/Case Number:
2006005557101
Principal Product Type:
No Product
Other Product Type(s):
Allegations:
NASDAQ RULE 4755: THE FIRM ENTERED TRANSACTION ORDERS INTO
NASDAQ MARKET CENTER THAT FAILED TO CORRECTLY INDICATE
WHETHER THE ORDERS WERE A BUY, SHORT SALE OR LONG SALE.
Current Status:
Final
Resolution Date:
10/14/2008
Resolution:
Other Sanctions Ordered:
Sanction Details:
WITHOUT ADMITTING OR DENYING THE FINDINGS THE FIRM CONSENTED
TO THE DESCRIBED SANCTION AND TO THE ENTRY OF FINDINGS:
THEREFORE, THE FIRM IS FINED $5000.
Does the order constitute a
final order based on
violations of any laws or
regulations that prohibit
fraudulent, manipulative, or
deceptive conduct?
No
Sanctions Ordered:
Monetary/Fine $5,000.00
Acceptance, Waiver & Consent(AWC)
40
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User Guidance
THEREFORE, THE FIRM IS FINED $5000.
i
Reporting Source:
Firm
Initiated By:
NASDAQ STOCK MARKET
Principal Sanction(s)/Relief
Sought:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanction(s)/Relief
Sought:
Date Initiated:
10/13/2008
Docket/Case Number:
2006005557101
Principal Product Type:
Equity - OTC
Other Product Type(s):
Allegations:
EXCEPTIONS TO NASDAQ RULE 4755: THE FIRM ENTERED TRANSACTION
ORDERS INTO NASDAQ MARKET CENTER THAT FAILED TO CORRECTLY
INDICATE WHETHER THE ORDERS WERE A BUY, SHORT SALE OR LONG
SALE.
Current Status:
Final
Resolution Date:
10/14/2008
Resolution:
Other Sanctions Ordered:
Sanction Details:
WITHOUT ADMITTING OR DENYING THE FINDINGS THE FIRM CONSENTED
TO THE DESCRIBED SANCTION AND TO THE ENTRY OF FINDINGS:
THEREFORE, THE FIRM IS FINED $5000.
Summary:
SATISFIED 10/24/2008
Sanctions Ordered:
Monetary/Fine $5,000.00
Acceptance, Waiver & Consent(AWC)
Disclosure 9 of 22
i
Reporting Source:
Regulator
Allegations:
SEC RULES 10B-10, 605, NASD RULES 2110, 3010, 3360, 8211, 8213 -
CANACCORD ADAMS INC. SUBMITTED TO NASD MONTHLY SHORT
INTEREST POSITION REPORTS THAT WERE INACCURATE; THE FIRM'S
SUPERVISORY SYSTEM DID NOT PROVIDE FOR SUPERVISION
REASONABLY DESIGNED TO ACHIEVE COMPLIANCE WITH APPLICABLE
SECURITIES LAWS, REGULATIONS AND NASD RULES CONCERNING
SHORT INTEREST REPORTING AND SUBMISSION OF ELECTRONIC BLUE
SHEET DATA AS REQUIRED BY NASD RULES 8211 AND 8213;
ERRONEOUSLY PROVIDED WRITTEN NOTIFICATION DISCLOSING TO ITS
CUSTOMERS THAT TRANSACTIONS WERE EXECUTED AT AN AVERAGE
PRICE; WHEN IT ACTED AS PRINCIPAL FOR ITS OWN ACCOUNT, FAILED TO
PROVIDE WRITTEN NOTIFICATION DISCLOSING TO ITS CUSTOMERS THAT
IT WAS A MARKET MAKER IN EACH SUCH SECURITY; FAILED TO PROVIDE
WRITTEN NOTIFICATION DISCLOSING TO ITS CUSTOMERS ITS CORRECT
CAPACITY IN TRANSACTIONS; THE FIRM MADE AVAILABLE A REPORT ON
THE COVERED ORDERS IN NATIONAL MARKET SYSTEM SECURITIES THAT
IT RECEIVED FOR EXECUTION FROM ANY PERSON THAT INCLUDED
INCORRECT INFOTMATION AS TO ORDER CLASSIFICATION AND ORDER
EXECUTION; FAILED TO SUBMIT ACCURATE TRADING INFORMATION
THROUGH THE SUBMISSION OF ELECTRONIC BLUE SHEETS IN RESPONSE
TO ONE OR MORE REQUESTS FOR SUCH INFORMATION BY NASD; THE
INACCURACIES CONSISTED OF THE REPORTING OF SHORT SALES AS
LONG SALES.
Current Status:
Final
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User Guidance
Initiated By:
NASD
Principal Sanction(s)/Relief
Sought:
Other Sanction(s)/Relief
Sought:
Date Initiated:
02/20/2007
Docket/Case Number:
2004100025301
Principal Product Type:
Other
Other Product Type(s):
NATIONAL MARKET SYSTEM SECURITIES, UNKNOWN TYPES OF
SECURITIES
REASONABLY DESIGNED TO ACHIEVE COMPLIANCE WITH APPLICABLE
SECURITIES LAWS, REGULATIONS AND NASD RULES CONCERNING
SHORT INTEREST REPORTING AND SUBMISSION OF ELECTRONIC BLUE
SHEET DATA AS REQUIRED BY NASD RULES 8211 AND 8213;
ERRONEOUSLY PROVIDED WRITTEN NOTIFICATION DISCLOSING TO ITS
CUSTOMERS THAT TRANSACTIONS WERE EXECUTED AT AN AVERAGE
PRICE; WHEN IT ACTED AS PRINCIPAL FOR ITS OWN ACCOUNT, FAILED TO
PROVIDE WRITTEN NOTIFICATION DISCLOSING TO ITS CUSTOMERS THAT
IT WAS A MARKET MAKER IN EACH SUCH SECURITY; FAILED TO PROVIDE
WRITTEN NOTIFICATION DISCLOSING TO ITS CUSTOMERS ITS CORRECT
CAPACITY IN TRANSACTIONS; THE FIRM MADE AVAILABLE A REPORT ON
THE COVERED ORDERS IN NATIONAL MARKET SYSTEM SECURITIES THAT
IT RECEIVED FOR EXECUTION FROM ANY PERSON THAT INCLUDED
INCORRECT INFOTMATION AS TO ORDER CLASSIFICATION AND ORDER
EXECUTION; FAILED TO SUBMIT ACCURATE TRADING INFORMATION
THROUGH THE SUBMISSION OF ELECTRONIC BLUE SHEETS IN RESPONSE
TO ONE OR MORE REQUESTS FOR SUCH INFORMATION BY NASD; THE
INACCURACIES CONSISTED OF THE REPORTING OF SHORT SALES AS
LONG SALES.
Resolution Date:
02/20/2007
Resolution:
Other Sanctions Ordered:
Does the order constitute a
final order based on
violations of any laws or
regulations that prohibit
fraudulent, manipulative, or
deceptive conduct?
No
Sanctions Ordered:
Censure
Monetary/Fine $85,000.00
Acceptance, Waiver & Consent(AWC)
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User Guidance
Other Sanctions Ordered:
Sanction Details:
WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTED
TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS;
THEREFORE, THE FIRM IS CENSURED AND FINED $85,000.
i
Reporting Source:
Firm
Initiated By:
NATIONAL ASSOCIATION OF SECURITIES DEALERS
Principal Sanction(s)/Relief
Sought:
Censure
Other Sanction(s)/Relief
Sought:
$85,000 MONETARY FINE.
Date Initiated:
02/20/2007
Docket/Case Number:
20041000253-01
Principal Product Type:
Other
Other Product Type(s):
NATIONAL MARKET SYSTEM SECURITIES; UNKNOWN TYPES OF
SECURITIES.
Allegations:
SEC RULES 10B-10, 605, NASD RULES 2110, 3010, 3360, 8211, & 8213-
CANACCORD ADAMS INC. SUBMITTED TO NASD MONTHLY SHORT
INTEREST POSITION REPORTS THAT WERE INACCURATE; THE FIRM'S
SUPERVISORY SYSTEM DID NOT PROVIDE FOR SUPERVISION
REASONABLY DESIGNED TO ACHIEVE COMPLIANCE WITH APPLICABLE
SECURITIES LAWS, REGULATIONS AND NASD RULES CONCERNING
SHORT INTEREST REPORTING AND SUBMISSION OF ELECTRONIC BLUE
SHEET DATA AS REQUIRED BY NASD RULES 8211 AND 8213;
ERRONEOUSLY PROVIDED WRITTEN NOTIFICATION DISCLOSING TO ITS
CUSTOMERS THAT TRANSACTIONS WERE EXECUTED AT AN AVERAGE
PRICE WHEN IT ACTED AS PRINCIPAL FOR ITS OWN ACCOUNT; FAILED TO
PROVIDE WRITTEN NOTIFICATION DISCLOSING TO ITS CUSTOMERS THAT
IT WAS A MARKET MAKER IN EACH SUCH SECURITY; FAILED TO PROVIDE
WRITTEN NOTIFICATION DISCLOSING TO ITS CUSTOMERS ITS CORRECT
CAPACITY IN TRANSACTIONS; THE FIRM MADE AVAILABLE A REPORT ON
THE COVERED ORDERS IN NATIONAL MARKET SYSTEM SECURITIES THAT
IT RECEIVED FOR EXECUTION FROM ANY PERSON THAT INCLUDED
INCORRECT INFORMATION AS TO ORDER CLASSIFICATION AND ORDER
EXECUTION; FAILED TO SUBMIT ACCURATE TRADING INFORMATION
THROUGH THE SUBMISSION OF ELECTRONIC BLUE SHEETS IN
REESPONSE TO ONE OR MORE REQUESTS FOR SUCH INFORMATION BY
NASD; THE INACCURACIES CONSISTED OF THE REPORTING OF SHORT
SALES AS LONG SALES.
Current Status:
Final
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User Guidance
Other Sanction(s)/Relief
Sought:
Resolution Date:
02/20/2007
Resolution:
Other Sanctions Ordered:
Sanction Details:
CANACCORD ADAMS INC. PAID THE MONETARY FINE ON MARCH 1, 2007.
THE FIRM HAS TAKEN CORRECTIVE MEASURES TO PREVENT FURTHER
INFRACTIONS.
Sanctions Ordered:
Censure
Monetary/Fine $85,000.00
Acceptance, Waiver & Consent(AWC)
Disclosure 10 of 22
i
Reporting Source:
Regulator
Allegations:
**11/01/2005**STIPULATION AND CONSENT TO PENALTY FILED BY NYSE
DIVISION OF ENFORCEMENT AND PENDING. CONSENTED TO FINDINGS: A
FINDING BY THE HEARING PANEL THAT THE FIRM:
1.VIOLATED SECTION 15(C) OF THE SECURITIES EXCHANGE ACT OF 1934
AND RULE 15C-3-3(E)(1) THEREUNDER IN THAT IT DID NOT MAINTAIN THE
AMOUNT REQUIRED TO BE ON DEPOSIT IN ITS SPECIAL RESERVE BANK
ACCOUNT FOR THE EXCLUSIVE BENEFIT OF CUSTOMERS AND DID NOT
PROPERLY COMPUTE THE AMOUNT REQUIRED TO BE ON DEPOSIT IN
THAT ACCOUNT.2.VIOLATED SECTION 15(C) OF THE SECURITIES
EXCHANGE ACT OF 1934 AND RULE 15C3-3(B) THEREUNDER IN THAT IT
DELIVERED SECURITIES CREATING OR INCREASING DEFICITS IN THE
PHYSICAL POSSESSION OR CONTROL OF ALL FULLY-PAID AND EXCESS
MARGIN SECURITIES HELD FOR THE ACCOUNTS OF
CUSTOMERS.3.VIOLATED SECTION 15(C) OF THE SECURITIES EXCHANGE
ACT OF 1934 AND RULE 15C3-3(D)(4) THEREUNDER IN THAT ITS WRITTEN
PROCEDURES FOR THE PHYSICAL POSSESSION OR CONTROL OF ALL
FULLY-PAID AND EXCESS MARGIN SECURITIES HELD FOR THE ACCOUNTS
OF ITS CUSTOMERS WERE INADEQUATE.4.VIOLATED SECTION 17(A) OF
THE SECURITIES EXCHANGE ACT OF 1934 AND RULE 17A-3(A)(6)
THEREUNDER AND EXCHANGE RULE 440 IN THAT IT DID NOT MAKE AND
KEEP CURRENT MEMORANDA OF BROKERAGE ORDERS AND DID NOT
STAMP ITS FLOOR ORDERS WITH THE TIME OF THEIR RECEIPT AND DID
NOT PROPERLY DATE ITS FLOOR ORDERS.5.VIOLATED SECTION 17(A) OF
THE SECURITIES EXCHANGE ACT OF 1934 AND RULE 17A-4(B) 4
THEREUNDER AND EXCHANGE RULE 440 BY FAILING TO PRESERVE FOR A
PERIOD OF THREE YEARS, THE FIRST TWO OF WHICH IN AN ACCESSIBLE
PLACE, ELECTRONIC COMMUNICATIONS RELATING TO ITS
BUSINESS.6.VIOLATED EXCHANGE RULE 134(D) IN THAT IT DID NOT
MAINTAIN AN ERROR ACCOUNT AND DID NOT MAINTAIN RECORDS OF ITS
ERRORS AND DID NOT MAINTAIN REQUIRED AUDIT TRAIL DATA
ELEMENTS.7.VIOLATED EXCHANGE RULE 440.20 IN THAT IT DID NOT
MAINTAIN PROPER RECORDS IDENTIFYING SUSPENSE ACCOUNTS AND IT
DID NOT HAVE PROCEDURES IN PLACE FOR THE SUPERVISORY REVIEW
OF ITS SUSPENSE ACCOUNTS.** CONTINUED AT # 13C**
Current Status:
Final
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User Guidance
Initiated By:
NEW YORK STOCK EXCHANGE DIVISION OF ENFORCEMENT
Principal Sanction(s)/Relief
Sought:
Other Sanction(s)/Relief
Sought:
Date Initiated:
11/01/2005
Docket/Case Number:
HPD #05-183
Principal Product Type:
Other
Other Product Type(s):
BUSINESS.6.VIOLATED EXCHANGE RULE 134(D) IN THAT IT DID NOT
MAINTAIN AN ERROR ACCOUNT AND DID NOT MAINTAIN RECORDS OF ITS
ERRORS AND DID NOT MAINTAIN REQUIRED AUDIT TRAIL DATA
ELEMENTS.7.VIOLATED EXCHANGE RULE 440.20 IN THAT IT DID NOT
MAINTAIN PROPER RECORDS IDENTIFYING SUSPENSE ACCOUNTS AND IT
DID NOT HAVE PROCEDURES IN PLACE FOR THE SUPERVISORY REVIEW
OF ITS SUSPENSE ACCOUNTS.** CONTINUED AT # 13C**
Resolution Date:
04/04/2006
Resolution:
Other Sanctions Ordered:
Sanction Details:
**2/15/06**DECISION 05-183 ISSUED BY NYSE HEARING PANEL
DECISION: VIOLATED SECTION 15(C) OF THE SECURITIES EXCHANGE ACT
OF 1934 AND RULE 15C3-3(E)(1) THEREUNDER BY NOT MAINTAINING OR
PROPERLY COMPOSING AMOUNT REQUIRED TO BE ON DEPOSIT IN
SPECIAL RESERVE BANK ACCOUNT FOR THE EXCLUSIVE BENEFIT OF
CUSTOMERS; VIOLATED SECTION 15(C) OF THE SECURITIES EXCHANGE
ACT OF 1934 AND RULE 15C3-3(B) THEREUNDER BY DELIVERING
SECURITIES THAT CREATED OR INCREASED DEFICITS IN PHYSICAL
POSSESSION OR CONTROL OF ALL FULLY-PAID AND EXCESS MARGIN
SECURITIES; VIOLATED SECTION 15(C) OF THE SECURITIES EXCHANGE
ACT OF 1934 AND RULE 15C3-3(D)(4) THEREUNDER INSOFAR AS WRITTEN
PROCEDURES FOR PHYSICAL POSSESSION OR CONTROL OF ALL
FULLY-PAID AND EXCESS MARGIN SECURITIES HELD FOR ACCOUNTS OF
ITS CUSTOMERS WERE INADEQUATE; VIOLATED SECTION 17(A) OF
SECURITIES EXCHANGE ACT OF 1934 AND RULE 17A-3(A)(6) THEREUNDER
AND NYSE RULE 440 BY NOT MAKING AND KEEPING CURRENT
MEMORANDA OF BROKERAGE ORDERS, NOT STAMPING FLOOR ORDERS
WITH TIME OF RECEIPT, AND NOT PROPERLY DATING FLOOR ORDERS;
VIOLATED SECTION 17(A) OF SECURITIES EXCHANGE ACT OF 1934 AND
RULE 17A-4(B)(4) THEREUNDER AND NYSE RULE 440 BY FAILING TO
PRESERVE BUSINESS-RELATED ELECTRONIC COMMUNICATIONS FOR A
PERIOD OF THREE YEARS; VIOLATED NYSE RULE 134(D) BY NOT
MAINTAINING ERROR ACCOUNT, RECORDS OF ERRORS, AND REQUIRED
AUDIT TRAIL DATE ELEMENTS; VIOLATED NYSE RULE 440.20 BY NOT
MAINTAINING PROPER RECORDS IDENTIFYING SUSPENSE ACCOUNTS
AND NOT HAVING PROCEDURES IN PLACE FOR SUPERVISORY REVIEW OF
SUSPENSE ACCOUNTS; VIOLATED NYSE RULE 342.17 BY NOT HAVING
WRITTEN POLICES AND PROCEDURES IN CONNECTION WITH REVIEW OF
CERTAIN TYPES OF ELECTRONIC COMMUNICATIONS WITH PUBLIC;
VIOLATED NYSE RULE 342 BY FAILING TO REASONABLY SUPERVISE OR
CONTROL BUSINESS ACTIVITIES AND TO ESTABLISH SEPARATE SYSTEM
OF FOLLOW-UP AND REVIEW TO PREVENT FOREGOING VIOLATIONS
CONSENT TO CENSURE AND $200,000 FINE.
Sanctions Ordered:
Censure
Monetary/Fine $200,000.00
Decision
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VIOLATED SECTION 17(A) OF SECURITIES EXCHANGE ACT OF 1934 AND
RULE 17A-4(B)(4) THEREUNDER AND NYSE RULE 440 BY FAILING TO
PRESERVE BUSINESS-RELATED ELECTRONIC COMMUNICATIONS FOR A
PERIOD OF THREE YEARS; VIOLATED NYSE RULE 134(D) BY NOT
MAINTAINING ERROR ACCOUNT, RECORDS OF ERRORS, AND REQUIRED
AUDIT TRAIL DATE ELEMENTS; VIOLATED NYSE RULE 440.20 BY NOT
MAINTAINING PROPER RECORDS IDENTIFYING SUSPENSE ACCOUNTS
AND NOT HAVING PROCEDURES IN PLACE FOR SUPERVISORY REVIEW OF
SUSPENSE ACCOUNTS; VIOLATED NYSE RULE 342.17 BY NOT HAVING
WRITTEN POLICES AND PROCEDURES IN CONNECTION WITH REVIEW OF
CERTAIN TYPES OF ELECTRONIC COMMUNICATIONS WITH PUBLIC;
VIOLATED NYSE RULE 342 BY FAILING TO REASONABLY SUPERVISE OR
CONTROL BUSINESS ACTIVITIES AND TO ESTABLISH SEPARATE SYSTEM
OF FOLLOW-UP AND REVIEW TO PREVENT FOREGOING VIOLATIONS
CONSENT TO CENSURE AND $200,000 FINE.
Summary:
**4/4/06**THE DECISION IS NOW FINAL AND EFFECTIVE IMMEDIATELY.
CONTACT: PEGGY GERMINO 212-656-8450
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Reporting Source:
Firm
Allegations:
*11/01/2005* STIPULATION AND CONSENT TO PENALTY FILED BY NYSE
DIVISION OF ENFORCEMENT AND PENDING. CONSENTED TO FINDINGS: A
FINDING BY THE HEARING PANEL THAT THE FIRM: 1.VIOLATED SECTION
15(C) OF THE SECURITIES EXCHANGE ACT OF 1934 AND RULE
15C-3-3(E)(1)THEREUNDER IN THAT IT DID NOT MAINTAIN THE AMOUNT
REQUIRED TO BE ON DEPOSIT IN ITS SPECIAL RESERVE BANK FOR THE
EXCLUSIVE BENEFIT OF CUSTOMERS AND DID NOT PROPERLY COMPUTE
THE AMOUNT REQUIRED TO BE ON DEPOSIT IN THAT ACCOUNT.
2.VIOLATED SECTION 15(C) OF THE SECURITIES EXCHANGE ACT OF 1934
AND RULE 15C3-3(B) THEREUNDER IN THAT IT DELIVERED SECURITIES
CREATING OR INCREASING DEFICITS IN THE PHYSICAL POSSESSION OR
CONTROL OF ALL FULLY-PAID AND EXCESS MARGIN SECURITIES HELD
FOR THE ACCOUNTS OF CUSOTMERS. 3.VIOLATED SECTION 15(C) OF THE
SECURITIES EXCHANGE ACT OF 1934 AND RULE 15C3-3(D)(4)
THEREUNDER IN THAT ITS WRITTEN PROCEDURES FOR THE PHYSICAL
POSSESSION OR CONTROL OF ALL FULLY-PAID AND EXCESS MARGIN
SECURITIES HELD FOR THE ACCOUNTS OF ITS CUSTOMERS WERE
INADEQUATE. 4.VIOLATED SECTION 17(A) OF THE SECURITIES EXCHANGE
ACT OF 1934 AND RULE 17A-3(A)(6) THEREUNDER AND EXCHANGE RULE
440 IN THAT IT DID NOT MAKE AND KEEP CURRENT MEMORANDA OF
BROKERAGE ORDERS AND DID NOT STAMP ITS FLOOR ORDERS WITH THE
TIME OF THEIR RECEIPT AND DID NOT PROPERLY DATE ITS FLOOR
ORDERS. 5.VIOLATED SECTION 17(A) OF THE SECURITIES EXCHANGE ACT
OF 1934 AND RULE 17A-4(B)(4) THEREUNDER AND EXCHANGE RULE 440
BY FAILING TO PRESERVE FOR A PERIOD OF THREE YEARS, THE FIRST
TWO OF WHICH IN AN ACCESSIBLE PLACE, ELECTRONIC
COMMUNICATIONS RELATING TO ITS BUSINESS. 6.VIOLATED EXCHANGE
RULE 134(D) IN THAT IT DID NOT MAINTAIN AN ERROR ACCOUNT AND DID
NOT MAINTAIN RECORDS OF ITS ERRORS AND DID NOT MAINTAIN
REQUIRED AUDIT TRAIL DATA ELEMENTS. 7.VIOLATED EXCHANGE RULE
440.20 IN THAT IT DID NOT MAINTAIN PROPER RECORDS IDENTIFYING
SUSPENSE ACCOUNTS AND IT DID NOT HAVE PROCEDURES IN PLACE
FOR THE SUPERVISORY REVIEW OF ITS SUSPENSE ACCOUNTS.
**CONTINUED AT #13C**
Current Status:
Final
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Initiated By:
NYSE
Principal Sanction(s)/Relief
Sought:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanction(s)/Relief
Sought:
CENSURE.
Date Initiated:
11/01/2005
Docket/Case Number:
HPD #05-183
Principal Product Type:
No Product
Other Product Type(s):
ORDERS. 5.VIOLATED SECTION 17(A) OF THE SECURITIES EXCHANGE ACT
OF 1934 AND RULE 17A-4(B)(4) THEREUNDER AND EXCHANGE RULE 440
BY FAILING TO PRESERVE FOR A PERIOD OF THREE YEARS, THE FIRST
TWO OF WHICH IN AN ACCESSIBLE PLACE, ELECTRONIC
COMMUNICATIONS RELATING TO ITS BUSINESS. 6.VIOLATED EXCHANGE
RULE 134(D) IN THAT IT DID NOT MAINTAIN AN ERROR ACCOUNT AND DID
NOT MAINTAIN RECORDS OF ITS ERRORS AND DID NOT MAINTAIN
REQUIRED AUDIT TRAIL DATA ELEMENTS. 7.VIOLATED EXCHANGE RULE
440.20 IN THAT IT DID NOT MAINTAIN PROPER RECORDS IDENTIFYING
SUSPENSE ACCOUNTS AND IT DID NOT HAVE PROCEDURES IN PLACE
FOR THE SUPERVISORY REVIEW OF ITS SUSPENSE ACCOUNTS.
**CONTINUED AT #13C**
Resolution Date:
04/04/2006
Resolution:
Other Sanctions Ordered:
Sanction Details:
CANACCORD ADAM INC. PAID THE MONETARY FINE ON MAY 11, 2006. THE
FIRM HAS TAKEN APPROPRIATE MEASURES TO PREVENT FURTHER
INFRACTIONS.
Summary:
**CONTINUED FROM #7** 8. VIOLATED EXCHANGE RULE 342.17 IN THAT IT
DID NOT HAVE WRITTEN POLICIES AND PROCEDURES IN CONNECTION
WITH REVIEW OF CERTAIN TYPES OF ELECTRONIC COMMUNICATIONS
WITH THE PUBLIC. 9. VIOLATED EXCHANGE RULE 342 IN THAT IT FAILED
TO REASONABLY SUPERVISE OR CONTROL ITS BUSIENSS ACTIVITIES AND
TO EXSTABLISH A SEPARATE SYSTEM OF FOLLOW-UP AND REVIEW TO
PREVENT THE FOREGOING VIOLATIONS. B. THE IMPOSITION BY THE
EXCHANGE OF THE PENALTY OF: 1. A CENSURE AND 2. A FINE OF
$200,000.
Sanctions Ordered:
Censure
Monetary/Fine $200,000.00
Decision
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Disclosure 11 of 22
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Reporting Source:
Firm
Initiated By:
U. S. SECURITIES AND EXCHANGE COMMISSION
Principal Sanction(s)/Relief
Sought:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanction(s)/Relief
Sought:
CENSURE AND CEASE AND DESIST ORDER FROM VIOLATING SECTION
17(B) OF SECURITIES ACT, SECTION 17(A) OF EXCHANGE ACT AND RULE
17A-4.
Date Initiated:
08/25/2004
Docket/Case Number:
ADMIN PROCEEDING FILE NO. 3-11598
Principal Product Type:
Other
Other Product Type(s):
EQUITY RESEARCH
INVESTMENT BANKING SERVICES
Allegations:
FAILURE TO DISCLOSE 3 PAYMENTS RECEIVED FOR THE ISSUANCE OF
RESEARCH REPORTS IN VIOLATION OF SECTION 17(B) OF THE
SECURITIES ACT; FAILURE TO PRESERVE BUSINESS-RELATED INTERNAL
E-MAIL COMMUNICATIONS IN VIOLATION OF SECTION 17(A) OF THE
EXCHANGE ACT AND EXCHANGE ACT RULE 17A-4.
Current Status:
Final
Resolution Date:
08/25/2004
Resolution:
Other Sanctions Ordered:
CENSURE AND CEASE AND DESIST ORDER
Sanction Details:
AH PAID THE MONETARY FINE ON OR ABOUT AUGUST 30, 2004. AH
CONSENTED TO THE SEC'S ORDER TO CEASE-AND-DESIST FROM FUTURE
VIOLATIONS OF SECTION 17(B) OF THE SECURITIES ACT AND SECTION
17(A) OF THE EXCHANGE ACT AND RULE 17A-4 THEREUNDER. AH WAS
CENSURED UNDER SECTION 15(B)(4) OF THE EXCHANGE ACT. AH AGREED
TO COMPLY WITH CERTAIN UNDERTAKINGS RELATED TO THE
PRESERVATION OF E-MAIL.
Summary:
PROCEEDINGS ARE CONCLUDED. UNDERTAKINGS WILL BE COMPLETED
WITHIN 90 DAYS OF ENTRY OF THE ORDER, IN COMPLIANCE WITH ITS
TERMS.
Sanctions Ordered:
Censure
Monetary/Fine $575,000.00
Cease and Desist/Injunction
Decision & Order of Offer of Settlement
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Disclosure 12 of 22
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Reporting Source:
Regulator
Initiated By:
NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC.
Principal Sanction(s)/Relief
Sought:
Other Sanction(s)/Relief
Sought:
Date Initiated:
01/02/2003
Docket/Case Number:
CMS020267
Principal Product Type:
Other
Other Product Type(s):
UNKNOWN TYPE OF SECURITIES
Allegations:
NASD MARKETPLACE RULE 4613(E)(1)(C) - WITHOUT ADMITTING OR
DENYING THE ALLEGATIONS, THE RESPONDENT MEMBER FIRM
CONSENTED TO THE ENTRY OF FINDINGS THAT IT, AS A MARKET MAKER
IN SECURITIES, LOCKED/CROSSED THE MARKET DURING THE
PRE-OPENING PERIOD AND FAILED TO IMMEDIATELY THEREAFTER SEND
A TRADE-OR-MOVE MESSAGE THROUGH SELECTNET TO THE MARKET
PARTICIPANT WHOSE QUOTE IT LOCKED OR CROSSED THAT WAS PRICED
AT THE RECEIVING MARKET PARTICIPANT'S QUOTED PRICE AND FAILED
TO SEND A TRADE-OR-MOVE MESSAGE THROUGH SELECTNET WHEN AN
AGGREGATE SIZE OF AT LEAST 5,000 SHARES TO ALL MARKET
PARTICIPANTS WHOSE QUOTES IT LOCKED/CROSSED. THE RESPONDENT
MEMBER, A MARKET MAKER IN SECURITIES, WAS A PARTY TO A LOCKED
OR CROSSED MARKET CONDITION PRIOR TO THE MARKET OPENING AND
RECEIVED A TRADE-OR-MOVE MESSAGE IN EACH INSTANCE THROUGH
SELECTNET AND WITHIN 30 SECONDS OF RECEIVING SUCH MESSAGES,
FAILED TO FILL THE INCOMING TRADE-OR-MOVE MESSAGE FOR THE FULL
SIZE OF THE MESSAGE OR MOVE ITS BID DOWN (OFFER UP) BY A
QUOTATION INCREMENT THAT WOULD HAVE UNLOCKED/UNCROSSED
THE MARKET.
Current Status:
Final
Resolution Date:
01/02/2003
Resolution:
Other Sanctions Ordered:
Sanction Details:
A CENSURE AND A FINE OF $25,000.
Sanctions Ordered:
Censure
Monetary/Fine $25,000.00
Acceptance, Waiver & Consent(AWC)
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Sanction Details:
A CENSURE AND A FINE OF $25,000.
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Reporting Source:
Firm
Initiated By:
NASD
Principal Sanction(s)/Relief
Sought:
Censure
Other Sanction(s)/Relief
Sought:
ACCEPTANCE, WAIVER & CONSENT
Date Initiated:
10/10/2002
Docket/Case Number:
CMS 020267 AWC
Principal Product Type:
Equity - OTC
Other Product Type(s):
Allegations:
ALLEGATIONS WERE NON-COMPLIANCE WITH NASD MARKETPLACE RULE
4613(E)(1)(C)
Current Status:
Final
Resolution Date:
01/02/2003
Resolution:
Other Sanctions Ordered:
Sanction Details:
$25,000 FINE AGAINST APPLICANT, PAID 01/28/2003.
Summary:
SATISFIED.
Sanctions Ordered:
Censure
Monetary/Fine $25,000.00
Acceptance, Waiver & Consent(AWC)
Disclosure 13 of 22
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Reporting Source:
Regulator
Allegations:
**08/14/2002** STIPULATION EXECUTED WITHOUT ADMITTING OR DENYING
GUILT, ADAMS HARKNESS & HILL CONSENTS TO: A FINDING BY THE
HEARING PANEL THAT IT: 1) VIOLATED EXCHANGE RULES 410 AND 440
AND SECTION 17(A) OF THE SECURITIES EXCHANGE ACT OF 1934, AS
AMENDED, AND SEC RULES 17A-3 AND 17A-4 PROMULGATED
THEREUNDER, IN THAT IT FAILED TO RETAIN ALL FLOOR BROKER ORDER
TICKETS FOR REVIEW; 2) VIOLATED THE PRINCIPLES OF GOOD BUSINESS
PRACTICE REQUIRED BY EXCHANGE RULE 401 WHEN IT FAILED TO
COMPLY WITH THE CONDITIONS
APPROVED BY THE SEC AND SET FORTH IN INFORMATION MEMO 94-6 IN
THAT IT FAILED TO OBTAIN PROPER CUSTOMER AGREEMENTS IN ITS
CAPACITY AS EXECUTING BROKER IN PRIME
BROKER ARRANGEMENTS; AND 3) VIOLATED EXCHANGE RULE 342 IN
THAT IT FAILED TO REASONABLY SUPERVISE AND IMPLEMENT ADEQUATE
SUPERVISORY CONTROLS OVER CERTAIN BUSINESS ACTIVITIES,
INCLUDING A SEPARATE SYSTEM OF FOLLOW-UP AND REVIEW, WITH
RESPECT TO THE REQUIRED SUPERVISORY REVIEW OF FLOOR BROKER
ORDER TICKETS AND OBTAINING PROPER CUSTOMER AGREEMENTS IN
ITS CAPACITY AS EXECUTING BROKER IN PRIME BROKER
ARRANGEMENTS. THE IMPOSITION BY THE EXCHANGE OF THE PENALTY
OF: 1) A CENSURE; AND 2) A $20,000 FINE.
Current Status:
Final
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User Guidance
Initiated By:
NEW YORK STOCK EXCHANGE DIVISION OF ENFORCEMENT
Principal Sanction(s)/Relief
Sought:
Other Sanction(s)/Relief
Sought:
Date Initiated:
08/14/2002
Docket/Case Number:
HPD#: 02-198
Principal Product Type:
Other
Other Product Type(s):
PRACTICE REQUIRED BY EXCHANGE RULE 401 WHEN IT FAILED TO
COMPLY WITH THE CONDITIONS
APPROVED BY THE SEC AND SET FORTH IN INFORMATION MEMO 94-6 IN
THAT IT FAILED TO OBTAIN PROPER CUSTOMER AGREEMENTS IN ITS
CAPACITY AS EXECUTING BROKER IN PRIME
BROKER ARRANGEMENTS; AND 3) VIOLATED EXCHANGE RULE 342 IN
THAT IT FAILED TO REASONABLY SUPERVISE AND IMPLEMENT ADEQUATE
SUPERVISORY CONTROLS OVER CERTAIN BUSINESS ACTIVITIES,
INCLUDING A SEPARATE SYSTEM OF FOLLOW-UP AND REVIEW, WITH
RESPECT TO THE REQUIRED SUPERVISORY REVIEW OF FLOOR BROKER
ORDER TICKETS AND OBTAINING PROPER CUSTOMER AGREEMENTS IN
ITS CAPACITY AS EXECUTING BROKER IN PRIME BROKER
ARRANGEMENTS. THE IMPOSITION BY THE EXCHANGE OF THE PENALTY
OF: 1) A CENSURE; AND 2) A $20,000 FINE.
Resolution Date:
11/08/2002
Resolution:
Other Sanctions Ordered:
Sanction Details:
**10/2/2002**DECISION 02-198 ISSUED BY NYSE HEARING PANEL
DECISION:IN ACCEPTING THE STIPULATION OF FACTS AND CONSENT TO
PENALTY, THE HEARING PANEL FOUND ADAMS, HARKNESS & HILL GUILTY
OF VIOLATING EXCHANGE RULES 410 AND 440 AND SECTION 17(A) OF
THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED, AND SEC RULES
17A-3 AND 17A-4 PROMULGATED THEREUNDER, IN THAT IT FAILED TO
RETAIN ALL FLOOR BROKER ORDER TICKETS FOR REVIEW; VIOLATING
THE PRINCIPLES OF GOOD BUSINESS PRACTICE REQUIRED BY
EXCHANGE RULE 401 WHEN IT FAILED TO COMPLY WITH THE CONDITIONS
APPROVED BY THE SEC AND SET FORTH IN INFORMATION MEMO 94-6 IN
THAT IT FAILED TO OBTAIN PROPER CUSTOMER AGREEMENTS IN ITS
CAPACITY AS EXECUTING BROKER IN PRIME BROKER ARRANGEMENTS;
AND VIOLATING EXCHANGE RULE 342 IN THAT IT FAILED TO REASONABLY
SUPERVISE AND IMPLEMENT ADEQUATE SUPERVISORY CONTROLS OVER
CERTAIN BUSINESS ACTIVITIES, INCLUDING A SEPARATE SYSTEM OF
FOLLOW-UP AND REVIEW, WITH RESPECT TO: 1) THE REQUIRED
SUPERVISORY REVIEW OF FLOOR BROKER ORDER TICKETS AND 2)
OBTAINING PROPER CUSTOMER AGREEMENTS IN ITS CAPACITY AS
EXECUTING BROKER IN PRIME BROKER ARRANGEMENTS.THE HEARING
PANEL IMPOSED THE PENALTY CONSENTED TO BY ADAMS, HARKNESS &
HILL OF A CENSURE AND $20,000 FINE.
Sanctions Ordered:
Censure
Monetary/Fine $20,000.00
Decision
51
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User Guidance
CAPACITY AS EXECUTING BROKER IN PRIME BROKER ARRANGEMENTS;
AND VIOLATING EXCHANGE RULE 342 IN THAT IT FAILED TO REASONABLY
SUPERVISE AND IMPLEMENT ADEQUATE SUPERVISORY CONTROLS OVER
CERTAIN BUSINESS ACTIVITIES, INCLUDING A SEPARATE SYSTEM OF
FOLLOW-UP AND REVIEW, WITH RESPECT TO: 1) THE REQUIRED
SUPERVISORY REVIEW OF FLOOR BROKER ORDER TICKETS AND 2)
OBTAINING PROPER CUSTOMER AGREEMENTS IN ITS CAPACITY AS
EXECUTING BROKER IN PRIME BROKER ARRANGEMENTS.THE HEARING
PANEL IMPOSED THE PENALTY CONSENTED TO BY ADAMS, HARKNESS &
HILL OF A CENSURE AND $20,000 FINE.
Summary:
**11/8/2002** THE DECISION IS NOW FINAL AND IS EFFECTIVE
IMMEDIATELY. CONTACT: PEGGY GERMINO (212) 656-8450.
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Reporting Source:
Firm
Initiated By:
NYSE
Principal Sanction(s)/Relief
Sought:
Censure
Other Sanction(s)/Relief
Sought:
$20,000.00 FINE
Date Initiated:
08/14/2002
Docket/Case Number:
Principal Product Type:
Equity Listed (Common & Preferred Stock)
Other Product Type(s):
Allegations:
ALLEGATIONS OF AN INFRACTION OF NYSE RULES 410 & 440, SEC RULE
17A-3 AND 17A-4 FOR FAILURE TO RETAIN ALL FLOOR BROKER ORDER
TICKETS FOR REVIEW, INFRACTION OF NYSE RULE 401 FOR FAILURE TO
OBTAIN PROPER CUSTOMER AGREEMENTS AS EXECUTING BROKER IN
PRIME BROKERAGE ARRANGEMENTS, INFRACTION OF NYSE RULE 342
FOR FAILURE TO IMPLEMENT ADEQUTE SUPERVISORY CONTROLS WITH
RESPECT TO REVIEW OF FLOOR BROKER ORDER TICKETS AND
OBTAINING PROPER CUSTOMER AGREEMENTS IN PRIME BROKERAGE
ARRANGEMENTS.
Current Status:
Final
Resolution Date:
11/08/2002
Resolution:
Other Sanctions Ordered:
Sanctions Ordered:
Censure
Monetary/Fine $20,000.00
Stipulation and Consent
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Other Sanctions Ordered:
Sanction Details:
$20,000 FINE AGAINST APPLICANT, PAID 12/03/2002
Summary:
SATISFIED.
Disclosure 14 of 22
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Reporting Source:
Regulator
Initiated By:
NATIONAL ASSOCIATION OF SECURITIES DEALERS
Allegations:
NASD RULES 2110, 2320, 4613, 6130 - WITHOUT ADMITTING OR DENYING
THE ALLEGATIONS, THE FIRM CONSENTED TO THE DESCRIBED
SANCTIONS AND TO THE ENTRY OF FINDINGS THAT IT FAILED TO USE
REASONABLE DILIGENCE TO ASCERTAIN THE BEST INTER-DEALER
MARKET AND FAILED TO BUY OR SELL IN SUCH MARKET SO THAT THE
RESULTANT PRICE TO ITS CUSTOMERS WAS AS FAVORABLE AS
POSSIBLE UNDER PREVAILING MARKET CONDITIONS. THE FINDINGS ALSO
STATED THAT THE FIRM FAILED TO EXECUTE ORDERS FULLY AND
PROMPTLY AND EXECUTED SHORT SALE TRANSACTIONS AND FAILED TO
REPORT EACH OF THESE TRANSACTIONS TO ACT WITH A SHORT SALE
MODIFIER. THE NASD FOUND THAT THE FIRM FAILED TO DISPLAY
IMMEDIATELY CUSTOMER LIMIT ORDERS IN NASDAQ SECURITIES IN ITS
PUBLIC QUOTATION, WHEN EACH SUCH ORDER WAS AT A PRICE THAT
WOULD HAVE IMPROVED THE FIRM?S BID OR OFFER FOR EACH SUCH
SECURITY, OR WHEN THE ORDER WAS PRICED EQUAL TO THE FIRM?S
BID OR OFFER AND THE NATIONAL BEST BID OR OFFER FOR EACH SUCH
SECURITY, AND THE SIZE OF THE ORDER REPRESENTED MORE THAN A
DE MINIMIS AMOUNT IN RELATION TO THE SIZE ASSOCIATED WITH THE
FIRM?S BID OR OFFER IN EACH SUCH SECURITY. IN ADDITION, THE NASD
FOUND THAT THE FIRM, A MARKET MAKER IN SECURITIES, WITHOUT
MAKING REASONABLE EFFORTS TO AVOID A LOCKED OR CROSSED
MARKET BY EXECUTING TRANSACTIONS WITH ALL MARKET MAKERS
WHOSE QUOTATIONS WOULD BE LOCKED OR CROSSED, ENTERED BID
OR ASK QUOTATIONS IN THE NASDAQ STOCK MARKET WHICH CAUSED A
LOCKED OR CROSSED MARKET CONDITION TO OCCUR IN EACH
INSTANCE. THE NASD ALSO DETERMINED THAT AN ORDER WAS
PRESENTED TO THE FIRM AT THE FIRM?S PUBLISHED BID OR PUBLISHED
OFFER IN AN AMOUNT UP TO ITS PUBLISHED QUOTATION SIZE AND THE
FIRM FAILED TO EXECUTE THE ORDERS UPON PRESENTMENT AND
THEREBY FAILED TO HONOR ITS PUBLISHED QUOTATION. IN ADDITION,
THE FINDINGS STATED THAT THE FIRM, AS MARKET MAKER IN
SECURITIES, LOCKED/CROSSED THE MARKET DURING THE PRE-OPENING
PERIOD AND FAILED TO IMMEDIATELY THEREAFTER SEND A
TRADE-OR-MOVE MESSAGE THROUGH SELECTNET (CONT.)
Current Status:
Final
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Initiated By:
NATIONAL ASSOCIATION OF SECURITIES DEALERS
Principal Sanction(s)/Relief
Sought:
Other Sanction(s)/Relief
Sought:
Date Initiated:
01/02/2002
Docket/Case Number:
CMS010208
Principal Product Type:
Equity - OTC
Other Product Type(s):
Resolution Date:
01/02/2002
Resolution:
Other Sanctions Ordered:
Sanction Details:
REQUIRED TO PAY $59.38, PLUS INTEREST, IN RESTITUTION TO PUBLIC
CUSTOMERS
Summary:
TO THE MARKET PARTICIPANT WHOSE QUOTE IT LOCKED OR CROSSED
THAT WAS PRICED AT THE RECEIVING MARKET PARTICIPANT?S QUOTED
PRICE, AND FAILED TO SEND A TRADE-OR- MOVE MESSAGE THROUGH
SELECTNET WHEN AN AGGREGATE SIZE OF AT LEAST 5,000 SHARES TO
ALL MARKET PARTICIPANTS WHOSE QUOTES IT LOCKED/CROSSED.
FURTHERMORE, THE FINDINGS STATED THAT THE FIRM WAS A PARTY TO
A LOCKED OR CROSSED MARKET CONDITION PRIOR TO THE MARKET
OPENING AND RECEIVED A TRADE-OR-MOVE MESSAGE IN EACH
INSTANCE THROUGH SELECTNET AND WITHIN 30 SECONDS OF
RECEIVING SUCH MESSAGES, FAILED TO FILL THE INCOMING
TRADE-OR-MOVE MESSAGE FOR THE FULL SIZE OF THE MESSAGE OR
MOVE ITS BID DOWN (OFFER UP) BY A QUOTATION INCREMENT THAT
WOULD HAVE UNLOCKED/UNCROSSED THE MARKET.
Sanctions Ordered:
Censure
Monetary/Fine $60,000.00
Disgorgement/Restitution
Acceptance, Waiver & Consent(AWC)
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Reporting Source:
Firm
Allegations:
ALLEGATIONS WERE NON-COMPLIANCE WITH NASD CONDUCT RULES
2110 & 2320, NASD MARKETPLACE RULE 6130(D), SEC RULE 11AC1-4,
NASD MARKETPLACE RULE 4613(E), SEC ACT RULE 11AC1-1, NASD
CONDUCT RULE 3320, NASD MARKETPLACE RULE 4613(B),
NASD MARKETPLACE RULE 4613(E)(1)(C).
Current Status:
Final
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Initiated By:
NASD REGULATION, INC.
Principal Sanction(s)/Relief
Sought:
Other
Other Sanction(s)/Relief
Sought:
AWC
Date Initiated:
11/16/2001
Docket/Case Number:
CMS010208 AWC
Principal Product Type:
Equity - OTC
Other Product Type(s):
N/A
CONDUCT RULE 3320, NASD MARKETPLACE RULE 4613(B),
NASD MARKETPLACE RULE 4613(E)(1)(C).
Resolution Date:
01/02/2002
Resolution:
Other Sanctions Ordered:
Sanction Details:
$60,000 FINE AGAINST APPLICANT, $59.38 RESTITUTION PLUS INTEREST
TO CUSTOMERS. PAID
Summary:
SATISFIED
Sanctions Ordered:
Censure
Monetary/Fine $60,000.00
Disgorgement/Restitution
Acceptance, Waiver & Consent(AWC)
Disclosure 15 of 22
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Reporting Source:
Regulator
Initiated By:
NATIONAL ASSOCIATION OF SECURITIES DEALERS
Date Initiated:
10/27/2000
Docket/Case Number:
CMS000222
Principal Product Type:
Equity - OTC
Allegations:
11/14/00GS: NASD RULES 2110, 3010, 3320 AND 4613(B) - RESPONDENT A
REGISTERED MARKET MAKER, FAILED TO EXECUTE ORDERS PRESENTED
TO IT AT ITS PUBLISHED BID OR PUBLISHED OFFER IN AN AMOUNT UP TO
ITS PUBLISHED QUOTATION; AND, ITS SUPERVISORY SYSTEM
CONCERNING THE SEC AND NASD FIRM QUOTE RULES DID NOT INCLUDE
ADEQUATE WRITTEN SUPERVISORY PROCEDURES.
Current Status:
Final
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User Guidance
Principal Sanction(s)/Relief
Sought:
Other Sanction(s)/Relief
Sought:
Other Product Type(s):
Resolution Date:
10/27/2000
Resolution:
Other Sanctions Ordered:
Sanction Details:
REVISE ITS WRITTEN SUPERVISORY PROCEDURES RELATING TO THE
SEC AND NASD FIRM QUOTE RULES WITHIN 30 BUSINESS DAYS.
Sanctions Ordered:
Censure
Monetary/Fine $6,000.00
Acceptance, Waiver & Consent(AWC)
i
Reporting Source:
Firm
Initiated By:
NASD REGULATION, INC.
Principal Sanction(s)/Relief
Sought:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanction(s)/Relief
Sought:
Date Initiated:
10/07/1999
Docket/Case Number:
CMS 000222
Principal Product Type:
Equity - OTC
Other Product Type(s):
Allegations:
NON-COMPLIANCE WITH FIRM QUOTATION OBLIGATIONS IDENTIFIED IN
SEC RULE 11AC1-1, NASD CONDUCT
RULE 3320 AND NASD MARKETPLACE RULE 4613(B).
INADEQUATE WRITTEN SUPERVISORY PROCEDURES IDENTIFIED IN NASD
CONDUCT RULES 2110 AND 3010.
Current Status:
Final
Resolution Date:
10/30/2000
Resolution:
Other Sanctions Ordered:
REVISE SUPERVISORY PROCEDURES
Sanctions Ordered:
Censure
Monetary/Fine $6,000.00
Acceptance, Waiver & Consent(AWC)
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User Guidance
Other Sanctions Ordered:
REVISE SUPERVISORY PROCEDURES
Sanction Details:
$6000 PAID 11/20/2000.
Summary:
SATISFIED
Disclosure 16 of 22
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Reporting Source:
Regulator
Initiated By:
MASSACHUSETTS
Principal Sanction(s)/Relief
Sought:
Other Sanction(s)/Relief
Sought:
Date Initiated:
07/26/1988
Docket/Case Number:
E-87-118
Principal Product Type:
No Product
Other Product Type(s):
Allegations:
FAILED TO NOTIFY THE DIRECTOR OF PENDING NASD COMPLAINT
N-VS-836, CONSTITUTING A VIOLATION OF SECTION 203(C) OF MGLC 110A.
RESPONDENT, ACTING THROUGH REPRESENTATIVE, TRANSACTED
SECURITIES BUSINESS IN STATES WITHOUT BEING REGISTERED.
Current Status:
Final
Resolution Date:
07/08/1988
Resolution:
Other Sanctions Ordered:
REPRIMANDED AND ORDERED TO REVIEW ITS ADMINISTRATIVE
PROCEDURES AND TO PAY ADMINISTRATIVE COSTS.
Sanction Details:
ADAMS HARKNESS & HILL HAS BEEN REPRIMANDED AND ORDERED TO
REVIEW ITS ADMINISTRATIVE PROCEDURES AND TO PAY
ADMINISTRATIVE COSTS TO THE SECURITIES DIVISION FOR ITS FAILURE
TO PROPERLY SUPERVISE EMPLOYEES.
Summary:
ALL OTHER VIOLATIONS DISMISSED WITH PREJUDICE AS TO ADAMS
HARKNESS & HILL, INC.
Sanctions Ordered:
Decision
i
Reporting Source:
Firm
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User Guidance
Initiated By:
THE SECURITIES DIVISION OF THE COMMONWEALTH OF
MASSACHUSETTS
Principal Sanction(s)/Relief
Sought:
Reprimand
Other Sanction(s)/Relief
Sought:
Date Initiated:
11/20/1986
Docket/Case Number:
E-87-118
Principal Product Type:
Equity - OTC
Other Product Type(s):
Allegations:
ON JULY 8, 1988, THE SECURITIES DIVISION OF THE COMMONWEALTH OF
MASSACHUSETTS REPRIMANDED A SALESPERSON FOR TRANSACTING
BUSINESS IN A STATE IN WHICH ADAMS, HARKNESS & HILL, INC. WAS
REGISTERED, BUT THE INDIVIDUAL WAS NOT.
THE DIVISION ALSO REPRIMANDED ADAMS, HARKNESS & HILL, INC. FOR
ALLOWING THE SALESPERSON TO DO SO.
Current Status:
Final
Resolution Date:
07/08/1988
Resolution:
Other Sanctions Ordered:
REVIEW SUPERVISORY POLICIES & PROCEDURES. PROVIDE TRAINING TO
SUPERVISORS FOR COMPLIANCE PROCEDURES.
Sanction Details:
$2000.00 JULY 8, 1988 FOR ADMINISTRATIVE COSTS.
Summary:
SATISFIED.
Sanctions Ordered:
Monetary/Fine $2,000.00
Consent
Disclosure 17 of 22
i
Reporting Source:
Regulator
Initiated By:
NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC.
Date Initiated:
10/28/1997
Docket/Case Number:
CMS970050 AWC
Principal Product Type:
Allegations:
Current Status:
Final
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User Guidance
Principal Sanction(s)/Relief
Sought:
Other Sanction(s)/Relief
Sought:
Other Product Type(s):
Resolution Date:
10/28/1997
Resolution:
Other Sanctions Ordered:
Sanction Details:
Summary:
LETTER OF ACCEPTANCE, WAIVER AND CONSENT NO. CMS970050 AWC.
ON OCTOBER 28, 1997, ADAMS, HARKNESS & HILL, INC. (ADAM) WAS
NOTIFIED THAT THE LETTER OF ACCEPTANCE, WAIVER AND CONSENT
(AWC) IT SUBMITTED WAS ACCEPTED BY THE MARKET REGULATION AND
THE NATIONAL BUSINESS CONDUCT COMMITTEES. THE AWC ALLEGES
THAT THE FOLLOWING VIOLATIONS OCCURRED:
ADAM FAILED TO CONTEMPORANEOUSLY EXECUTE A CUSTOMER LIMIT
ORDER AFTER IT SOLD SHARES OF ONE NASDAQ SECURITY FOR ITS OWN
MARKET-MAKING ACCOUNT. THIS CONSTITUTES A VIOLATION OF NASD
CONDUCT RULE 2110 AND IM-2110-2.
ADAM FAILED TO PROVIDE, IN CONNECTION WITH 65 TRANSACTIONS IN
WHICH IT ACTED AS PRINCIPAL, WRITTEN NOTIFICATION DISCLOSING TO
ITS CUSTOMER THE REPORTED TRADE PRICE FOR EACH SUCH
TRANSACTION. THIS CONSTITUTES SEPARATE AND DISTINCT
VIOLATIONS OF SEC RULE 10b-10(a)(2).
FROM ON OR ABOUT JANUARY 1996 THROUGH AUGUST 1996, JOSEPH
RANIERI ("RANIERI") ENGAGED IN THE INVESTMENT BANKING OR
SECURITIES BUSINESS OF ADAM. DURING THIS PERIOD, ADAM FAILED
TO REGISTER RANIERI WITH THE ASSOCIATION AS A GENERAL
SECURITIES REPRESENTATIVE. THIS CONSTITUTES A VIOLATION OF THE
NASD MEMBERSHIP AND REGISTRATION RULE.
FINALLY, ADAM FAILED TO ESTABLISH, MAINTAIN, AND ENFORCE
WRITTEN SUPERVISORY PROCEDURES REASONABLY DESIGNED TO
ACHIEVE COMPLIANCE WITH THE APPLICABLE SECURITIES LAWS AND
REGULATIONS REGARDING LIMIT ORDERS. THIS CONSTITUTES A VIOLATION OF NASD
CONDUCT RULES 2110 AND 3010.
ADAM WAS CENSURED AND FINED $9,500.
******* $9,500 PAID ON 12/11/97, INVOICE NO. 97-MS-985 ********
Sanctions Ordered:
Censure
Monetary/Fine $9,500.00
Acceptance, Waiver & Consent(AWC)
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User Guidance
WRITTEN SUPERVISORY PROCEDURES REASONABLY DESIGNED TO
ACHIEVE COMPLIANCE WITH THE APPLICABLE SECURITIES LAWS AND
REGULATIONS REGARDING LIMIT ORDERS. THIS CONSTITUTES A VIOLATION OF NASD
CONDUCT RULES 2110 AND 3010.
ADAM WAS CENSURED AND FINED $9,500.
******* $9,500 PAID ON 12/11/97, INVOICE NO. 97-MS-985 ********
i
Reporting Source:
Firm
Initiated By:
NASD REGULATION
Principal Sanction(s)/Relief
Sought:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanction(s)/Relief
Sought:
Date Initiated:
06/17/1997
Docket/Case Number:
CMS 970050 AWC
Principal Product Type:
Equity - OTC
Other Product Type(s):
Allegations:
ALLEGED VIOLATIONS OF CONDUCT RULE 2110 AND IM-2110-2, SEC RULE
10B-10(A)(2), MEMBERSHIP AND REGISTRATION RULE 1031(A), AND
CONDUCT RULES 210 AND 3010
Current Status:
Final
Resolution Date:
10/17/1997
Resolution:
Other Sanctions Ordered:
Sanction Details:
PAID $9500.00 ON 12/09/1997 - SATISFIED
Summary:
SATISFIED
Sanctions Ordered:
Censure
Monetary/Fine $9,500.00
Acceptance, Waiver & Consent(AWC)
Disclosure 18 of 22
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User Guidance
Reporting Source:
Regulator
Initiated By:
NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC.
Principal Sanction(s)/Relief
Sought:
Other Sanction(s)/Relief
Sought:
Date Initiated:
12/15/1995
Docket/Case Number:
CMS950069(A)
Principal Product Type:
Other Product Type(s):
Allegations:
Current Status:
Final
Resolution Date:
02/20/1996
Resolution:
Other Sanctions Ordered:
Sanction Details:
Summary:
LETTER OF ACCEPTANCE, WAIVER AND CONSENT NO. CMS950069(A) AWC
THIS AWC WAS FILED BY THE MARKET SURVEILLANCE COMMITTEE (MSC)
AGAINST ADAMS, HARKNESS & HILL, INC. (ADAM) ON DECEMBER 15,
1995 ALLEGING VIOLATIONS OF SCHEDULE D TO THE ASSOCIATION'S
BY-LAWS WITH REGARD TO LATE TRADE REPORTING; ARTICLE III,
SECTIONS 1 AND 12 OF THE ASSOCIATION'S RULES OF FAIR PRACTICE
AND SECTION 10(b) OF THE SECURITIES EXCHANGE ACT OF 1934 AND
RULE 10b-10 THEREUNDER WITH REGARD TO DISCLOSURE ON
CONFIRMATIONS AND ARTICLE III, SECTIONS 1 AND 27 OF THE RFP FOR
FAILING ESTABLISH, MAINTAIN AND ENFORCE WRITTEN PROCEDURES TO
PREVENT THE VIOLATIONS ALLEGED ABOVE. ADAM IS ALSO ALLEGEDLY
IN VIOLATION OF THE BOARD OF GOVERNORS INTERPRETATION
CONCERNING THE OBLIGATION OF MEMBERS TO REPORT
TRANSACTIONS
WITHIN 90 SECONDS OF EXECUTION.
BASED ON THE FOREGOING, ADAMS CONSENTS TO THE ASSOCIATION
IMPOSING ON IT, THE FOLLOWING SANCTIONS: A CENSURE AND A FINE
OF $20,000.
THE AWC BECAME FINAL ON FEBRUARY 20, 1996.
**$20,000.00 PAID ON 03/14/96, INVOICE # 96-MS-150**
Sanctions Ordered:
Censure
Monetary/Fine $20,000.00
Acceptance, Waiver & Consent(AWC)
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User Guidance
OF $20,000.
THE AWC BECAME FINAL ON FEBRUARY 20, 1996.
**$20,000.00 PAID ON 03/14/96, INVOICE # 96-MS-150**
i
Reporting Source:
Firm
Initiated By:
NATIONAL ASSOCIATION OF SECURITIES DEALERS
Principal Sanction(s)/Relief
Sought:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanction(s)/Relief
Sought:
Date Initiated:
12/15/1995
Docket/Case Number:
CMS950069(A) AWC
Principal Product Type:
Equity - OTC
Other Product Type(s):
Allegations:
NASD REVIEWED TRADE REPORTING PRACTICES FOR 09/94 - 02/95 AND
IDENTIFIED TECHNICAL TRADE REPORTING VIOLATIONS - THE BULK OF
WHICH OCCURRED BEFORE THE IMPLEMENTATION OF AN ELECTRONIC
TRADE SUPPORT SYSTEM - ATTRIBUTABLE TO HUMAN ERROR GIVEN THE
INCREASED VOLUME.
Current Status:
Final
Resolution Date:
02/20/1996
Resolution:
Other Sanctions Ordered:
Sanction Details:
$20000.00 PAID IN 1996 - SATISFIED
Summary:
SATISFIED
Sanctions Ordered:
Censure
Monetary/Fine $20,000.00
Acceptance, Waiver & Consent(AWC)
Disclosure 19 of 22
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Reporting Source:
Regulator
Allegations:
Current Status:
Final
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User Guidance
Initiated By:
NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC.
Principal Sanction(s)/Relief
Sought:
Other Sanction(s)/Relief
Sought:
Date Initiated:
12/28/1995
Docket/Case Number:
CMS950030
Principal Product Type:
Other Product Type(s):
Allegations:
Resolution Date:
12/28/1995
Resolution:
Other Sanctions Ordered:
Sanction Details:
Summary:
LETTER OF ACCEPTANCE, WAIVER AND CONSENT NO. CMS950030 AWC
(AWC) FILED BY THE MARKET SURVEILLANCE COMMITTEE (MSC) AGAINST
ADAMS, HARKNESS & HILL, INC. (ADAM) ALLEGING VIOLATION OF
ARTICLE III, SECTION 1 OF THE ASSOCIATION'S RULES OF FAIR
PRACTICE IN THAT ADAM ENTERED AN ORDER IN THE SELECTNET
SYSTEM
(SNET) WHICH CONTAINED A MESSAGE IN THE "TEXT MSG" FIELD, WHICH
IS INAPPROPRIATE, UNRELATED TO THE ORDER AND CONTRARY TO THE
PURPOSE AND FUNCTION OF SNET.
THE MSC IMPOSED A FINE OF $500 AGAINST ADAM. THE AWC BECAME
FINAL ON DECEMBER 28, 1995.
**$500.00 PAID ON 10/10/95, INVOICE # 96-12-48**
Sanctions Ordered:
Monetary/Fine $500.00
Acceptance, Waiver & Consent(AWC)
i
Reporting Source:
Firm
Initiated By:
NATIONAL ASSOCIATION OF SECURITIES DEALERS
Date Initiated:
01/26/1995
Allegations:
INAPPROPRIATE TEXT MESSAGE ENTERED ON SELECTNET
Current Status:
Final
63
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User Guidance
Principal Sanction(s)/Relief
Sought:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanction(s)/Relief
Sought:
Date Initiated:
01/26/1995
Docket/Case Number:
CMS950030AWC
Principal Product Type:
Equity - OTC
Other Product Type(s):
Resolution Date:
12/28/1995
Resolution:
Other Sanctions Ordered:
Sanction Details:
$500.00 PAID IN 1996 - SATISFIED
Summary:
SATISFIED
Sanctions Ordered:
Monetary/Fine $500.00
Acceptance, Waiver & Consent(AWC)
Disclosure 20 of 22
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Reporting Source:
Regulator
Initiated By:
NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC.
Principal Sanction(s)/Relief
Sought:
Other Sanction(s)/Relief
Sought:
Date Initiated:
03/30/1995
Docket/Case Number:
C11950008
Principal Product Type:
Other Product Type(s):
Allegations:
Current Status:
Final
Resolution Date:
03/30/1995
Resolution:
Sanctions Ordered:
Censure
Monetary/Fine $2,500.00
Consent
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User Guidance
Other Sanctions Ordered:
Sanction Details:
Summary:
ON MARCH 30, 1995, DISTRICT NO. 11 NOTIFIED ADAMS, HARKNESS &
HILL, INC. AND LINDA A. HORAN THAT THE LETTER OF ACCEPTANCE,
WAIVER AND CONSENT NO. C11950008 WAS ACCEPTED; THEREFORE,
THEY
ARE CENSURED AND FINED $2,500, JOINTLY AND SEVERALLY. -
(ARTICLE III, SECTION 1 OF THE RULES OF FAIR PRACTICE -
RESPONDENT MEMBER, ACTING THROUGH RESPONDENT HORAN,
PARTICIPATED IN THREE NEW ISSUE DISTRIBUTIONS DEEMED TO BE HOT
ISSUES, SELLING SHARES TO BANKS, TRUSTS, OR OTHER CONDUITS FOR
UNDISCLOSED PRINCIPALS AS WELL AS TO INVESTMENT PARTNERSHIPS
AND CORPORATIONS, WITHOUT HAVING MADE AND RECORDED
AFFIRMATIVE
INQUIRY OF SUCH ACCOUNT AS TO WHETHER THE PURCHASERS WERE
RESTRICTED AND WITHOUT HAVING OBTAINED EITHER A CURRENT LIST
OF
THE NAMES AND BUSINESS CONNECTIONS OF ALL PERSONS HAVING A
BENEFICAL INTEREST IN THE ACCOUNT OR AN OPINION OF COUNSEL
STATING HE REASONABLY BELIEVES THAT NO PERSON WITH A
BENEFICIAL
INTEREST IN THE ACCOUNT IS RESTRICTED).
************************************************************
***$2,500.00 J&S PAID ON 5/26/95 INVOICE NO. 95-11-249***
Sanctions Ordered:
Monetary/Fine $2,500.00
i
Reporting Source:
Firm
Initiated By:
NATIONAL ASSOCIATION OF SECURITIES DEALERS
Principal Sanction(s)/Relief
Sought:
Civil and Administrative Penalt(ies) /Fine(s)
Date Initiated:
10/01/1994
Docket/Case Number:
C11950008
Principal Product Type:
Equity - OTC
Other Product Type(s):
Allegations:
VIOLATION OF ART. III OF RULES OF FAIR PRACTICE. PARTICIPATION IN 3
NEW ISSUE DISTRIBUTIONS DEEMED TO BE HOT ISSUES IN WHICH SALES
WERE MADE WITHOUT HAVING MADE AND RECORDED AFFIRMATIVE
INQUIRY AS TO WHETHER THE ULTIMATE PURCHASERS OF SUCH
SECURITIES WERE RESTRICTED.
Current Status:
Final
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User Guidance
Principal Sanction(s)/Relief
Sought:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanction(s)/Relief
Sought:
Resolution Date:
03/30/1995
Resolution:
Other Sanctions Ordered:
Sanction Details:
PAID $2500 IN 1995 - SATISFIED
Summary:
SATISFIED
Sanctions Ordered:
Monetary/Fine $2,500.00
Consent
Disclosure 21 of 22
i
Reporting Source:
Regulator
Initiated By:
NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC.
Principal Sanction(s)/Relief
Sought:
Other Sanction(s)/Relief
Sought:
Date Initiated:
02/01/1984
Docket/Case Number:
Principal Product Type:
No Product
Other Product Type(s):
Allegations:
NONE PROVIDED
Current Status:
Final
Resolution Date:
02/01/1984
Resolution:
Other Sanctions Ordered:
Sanction Details:
THE NASD IMPOSED A $750 FINE
Summary:
ON FEBRUARY 1, 1984, THE NASD IMPOSED A $750 FINE ON ADAMS,
HARKNESS & HILL, INC. FOR FAILING TO REPORT, ON CERTAIN
OCCASIONS, NASDAQ VOLUME.....SEE BDA JDS 10047, 23787.
Sanctions Ordered:
Monetary/Fine $750.00
Decision
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User Guidance
i
Reporting Source:
Firm
Initiated By:
NATIONAL ASSOCIATION OF SECURITIES DEALERS
Principal Sanction(s)/Relief
Sought:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanction(s)/Relief
Sought:
Date Initiated:
02/01/1984
Docket/Case Number:
Principal Product Type:
Equity - OTC
Other Product Type(s):
Allegations:
THE NASD IMPOSED A FINE ON THE FIRM FOR FAILING TO REPORT, ON
OCCASION, NASDAQ VOLUME.
Current Status:
Final
Resolution Date:
02/01/1984
Resolution:
Other Sanctions Ordered:
Sanction Details:
$750 PAID IN 1984. SATISFIED
Summary:
SATISFIED
Sanctions Ordered:
Monetary/Fine $750.00
Consent
Disclosure 22 of 22
i
Reporting Source:
Regulator
Initiated By:
NEW YORK STOCK EXCHANGE
Principal Sanction(s)/Relief
Sought:
Date Initiated:
03/31/1980
Docket/Case Number:
79-52
Principal Product Type:
Other Product Type(s):
Allegations:
Current Status:
Final
67
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User Guidance
Principal Sanction(s)/Relief
Sought:
Other Sanction(s)/Relief
Sought:
Resolution Date:
03/31/1980
Resolution:
Other Sanctions Ordered:
Sanction Details:
Summary:
NYSE: 03/31/80:
DECISION 79-52 HEARING PANEL IMPOSED THE
PENALTY CONSENTED TO BY THE
FIRM OF A CENSURE AND A
$3,000 FINE.
Sanctions Ordered:
Censure
Monetary/Fine $3,000.00
Consent
i
Reporting Source:
Firm
Initiated By:
NEW YORK STOCK EXCHANGE
Principal Sanction(s)/Relief
Sought:
Censure
Other Sanction(s)/Relief
Sought:
Date Initiated:
08/01/1978
Docket/Case Number:
79-52
Principal Product Type:
Equity - OTC
Other Product Type(s):
Allegations:
THE NYSE CENSURED THE FIRM AND IMPOSED A FINE FOR, ON
OCCASSION, FAILING TO LIQUIDATE CUSTOMER ACCOUNTS AS
REQUIRED BY REGULATION T.
Current Status:
Final
Resolution Date:
03/31/1980
Resolution:
Sanctions Ordered:
Censure
Monetary/Fine $3,000.00
Consent
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User Guidance
Other Sanctions Ordered:
Sanction Details:
$3000.00 PAID IN 1980. SATISFIED
Summary:
SATISFIED
69
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Civil Bond
This type of disclosure event involves a civil bond for the brokerage firm that has been denied, paid, or revoked by a
bonding company.
Disclosure 1 of 1
Reporting Source:
Firm
Policy Holder:
ADAMS, HARKNESS & HILL, INC.
Bonding Company Name:
ST. PAUL FIRE & MARINE INSURANCE CO.
Disposition:
Payout
Disposition Date:
11/08/1983
Payout Details:
$853,000 - NOVEMBER 8, 1983
Summary:
ON NOVEMBER 8, 1983, ST PAUL FIRE & MARINE INSURANCE CO. PAID
ADAMS, HARKNESS & HILL, INC., $853,000 TO REPLACE A MISSING
CERTIFICATE FOR 29,000 SHARES OF COMMON STOCK OF STORER
COMMUNICATIONS INC. ITS LOSS IS BELIEVED TO BE THE RESULT OF
DISHONEST ACTS BY A FORMER EMPLOYEE WHO WAS APPREHENDED,
STOOD TRIAL IN THE COMMONWEALTH OF MASSACHUSETTS AND WAS
CONVICTED.
70
"We are preparing to issue our Q2 2013 financials, which, as you will see, show that the company has continued its steady growth."
"Larry (King) and I have met and talked several times since the interview was first announced and we are looking for the right time and manner for conducting this interview. I am also scheduled for several other interviews with various forms of media outlets over the next few weeks and we will announce those as they happen."
"We are preparing to bring aboard an investor relations firm to be more responsive to the information requests of our investors."
"We will be moving the company’s headquarters to California."
"We are in the process of formalizing our company business plan, about which we are very excited, and you should see snippets of that in the coming weeks in various forms.
In summary, right now we are examining a variety of strategic options and possible partners to advance the business’ growth quickly."
LETTER FROM CHAIRMAN
http://www.medicalgreens.com/
Re: "Just go look at the Washington Consultant list: not one from MG or SKTO"
http://www.liq.wa.gov/publications/Marijuana/I-502/K430_Award_Summary.pdf
How could MG/SKTO appear there as a consultant? Consider the timeline.
"An optional Pre-Proposal Conference was held on January 30, 2013 at 11:00 a.m. at the Greater Tacoma Convention and Trade Center (GTTC). Approximately 100 vendors and media members were in attendance. The official Pre-Proposal Conference Sign-In Sheet was posted to WEBS on February 1, 2012. Proposals were due February 15, 2013 at 2:00 p.m. (PT). A total of 379 vendors downloaded the RFP document from WEBS prior to the due date and time."
The report was submitted on March 18, 2013 but it concerns matters that happened the month before.
Hard data is not hearsay such as was heretofore provided. Hard data is documented information. Sometimes it costs money to get it. Those who present hearsay have every reason to expect they will be challenged. eos
nodummy: Odd that you have provided no hard proof of your assertion. Therefore, per your own standards of due diligence, your undocumented assertion cannot be accepted as factual until such presentation.
It doesn't exclude that possibility, which is the point. You could sensibly write in an IH post, "I have written IH posts for years." The tense doesn't exclude that very action from happening in the present, as well.
"Have included" isn't past tense; it's present perfect tense.
Plowing his field, the farmer said to a visitor, "Yes, we have farmed this land."
As you well know, Jeff Benz updated his linkedin with the addition of SKTO/Medical Greens as client shortly after his appointment as legal counsel for SKTO on March 26, 2013.
http://finance.yahoo.com/news/skto-signs-accomplished-legal-executive-134510711.html
MIAMI, FL--(Marketwire - Mar 26, 2013) - SK3 Group, Inc. (OTC Pink: SKTO) today announces that it has appointed Jeffrey Benz, an experienced business attorney and former executive with various sports, entertainment, and technology companies, as General Counsel and Executive Vice President of Business, Legal, and Government Affairs.
"We are bringing together a management team with the unique and demonstrated abilities to drive our business to success," said Kevin Allyn, Chairman of SK3. "Jeff Benz has broad experience as a senior executive, lawyer, and entrepreneur in entertainment, sports, licensing, intellectual property, and technology. Jeff has been a trusted advisor to a variety of companies, both private and public, and has advised a number of high profile executives. Among other things, Mr. Benz was the General Counsel and head of business and government affairs for the United States Olympic Committee, AVP Pro Beach Volleyball Tour, and a variety of private companies in sports, entertainment (television, film, and online), and technology (mobile phone applications, computer software and hardware, and medical devices), and has lead high profile legal and operational functions in a wide array of industries, including internationally. Mr. Benz's extraordinary experience and background, and his legal leadership skills, uniquely fit our current needs and will lead SKTO into lucrative new markets."
Mr. Benz has BA and MBA degrees from the University of Michigan and a JD from the University of Texas. Mr. Benz is also an accomplished arbitrator and mediator, and has served as a private judge in, among other things, disputes over athlete doping issues in sports, having lead the anti-doping program at the USOC when he was there.
SK3 has shifted its business model to focus purely on the medical marijuana space. SK3 recently announced its acquisition of Medical Greensâ„¢, a business that currently provides licensing, management, and logistic services for Medical Marijuana collectives throughout California. In 2013 alone, Medical Greensâ„¢ has already contracted over $30 Million in licensing and service agreements. As part of the company repositioning, the Board of Directors will be announcing new officers and executives throughout the next quarter. Besides his leadership role, Benz will be assisting with the recruitment, sourcing, and documenting relationships with key executives, directors, and strategic partners, including those for SK3's newly acquired subsidiary, Medical Greensâ„¢.
About SK3
SK3 is a healthcare logistics and fulfillment consultancy focused on the delivery of alternative care and medicine. With seasoned management, breakthrough technology and best practices, SK3 brings standardization and transparency to this rapidly growing segment of the alternative care field.
Referring to stervc's post, all nine OTC forward-split stocks cited rose steadily and significantly in the trading days heading into a forward split after the announcement. This phenomenon occurred even in the case of a stock that went down (-3.2%) post split.
After the split, there were split-adjusted gains as noted. Percentage gains are calculated based on the high on last trading day before the split compared to subsequent high in the days following forward split.
Will SKTO follow this pattern? Stay tuned!
# of days post split / % gains (split adjusted)
a) after 3 days / Gain 525%
b) " 5 days / Loss (-3.2%)
c) " 7 days / Gain 62%
d) " 14 days / Gain 816%
e) " 18 days / Gain 87.5%
f) " 20 days / Gain 146%
g) " 26 days Gain 2009%
h) " 3 Months / Gain 884%
i) " 5 Months / Gain 1030%
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An interesting feature of the data is that the prices of all nine OTC forward-split stocks rose steadily and significantly in the trading days heading into the forward split. This phenomenon occurred even in the case of the one stock on the list that went down (-3.2%) post split. After the split there were gains as noted.
3 days / Gain 525%
5 days / Loss (-3.2%)
7 days / Gain 62%
14 days / Gain 816%
18 days / Gain 87.5%
20 days / Gain 146%
26 days Gain 2009%
3 Months / Gain Gain 884%
5 Months / Gain 1030%
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How do forward-split stocks fare post split? stervc's treatise includes nine price histories of OTC stocks that forward split.
In all but one of the nine cases, there were notable gains in price. Some percentage gains, based on high on day before split compared to the subsequent high after split, were spectacular and achieved in a few days or weeks following split date.
In all nine cases, there were steady and significant gains leading up to the split date.
The market, it is often said, tends to favor forward splits. Will SKTO follow this pattern? Stay tuned!
Gains after forward splits:
]3 days / Gain 525%
5 days / Loss (-3.2%)
7 days / Gain 62%
14 days / Gain 816%
18 days / Gain 87.5%
20 days / Gain 146%
26 days / Gain 2009%
3 Months / Gain Gain 884%
5 Months / Gain 1030%
stervc's data with time & % gains added:
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5 Months Gain 1030%
Forward Split Ratio of 100 for 1 BIFS - (PINKS)
Announced on Feb. 28, 2000... OS = 4,209,000...FLOAT = 1,134,000
Price Range (Pre-Split)
03-01 . $.75 - $2.000
3-02 . $1.60 - $3.00
03-10 . $3.00 - $4.87
03-13 . $4.25 - $6.00
03-14 . $10.12 - $15.00
03-17 . $15.00 - $19.50
03-20 . $14.00 - $20.00
Price Range (Post-Split)
04-17 . $.08 - $.25
04-18 . $.08 - $.14
06-13 . $.12 - $.25
06-14 . $.26 - $.44
08-07 . $.43 - $.515
08-11 . $.84 - $1.00
08-14 . $1.00 - $1.62
08-15 . $1.62 - $2.00
08-16 . $2.26.............................. * $226.01 for = Equivalent Pre-split Price
3 Months Gain Gain 884%
Forward Split Ratio of 100 for 1 COOX - (OTCBB)
Announced on Oct 4, 2000... OS = 250,000...FLOAT = 220,000
Price Range (Pre-Split)
Oct 3 ** Closed at $1.50
Oct 4 ** Traded between $4.50 - $11.50
Oct 5 ** Traded between $7.03 - $18.50
Oct 6 ** Traded between $12.50 - $19.00
Price Range (Post-Split)
Oct 10 **$.10 - $.38
Oct 31 ** $.25 - $.437
Nov 15 ** $.40 - $.45
Jan 09 ** $.30 - $1.87.................... * $187.00 = Equivalent Pre-split Price
26 days Gain 2009%
Forward Split Ratio of 10 for 1 RCVR/ESYG - (OTCBB)
Announced on Nov 22, 2000 ..... OS = 2,360,000...FLOAT = 200,000
Price Range (Pre-Split)
12-6 . $1.597
Price Range (Post-Split)
12-07 . $0.312 - $0.80
12-08 . $1.031 - $0.50
12-11 . $1.375 - $0.75
12-12 . $2.469 - $2.75
01-08 . $1.875 - $3.375.................... * $33.75 = Equivalent Pre-split Price
20 days Gain 146%
Forward Split Ratio of 10 for 1 SWTI/SYWI - (OTCBB)
Announced on Sept. 19, 2000..... OS = 1,386,237...FLOAT = 300,000 (est.)
Price Range (Pre-Split)
09-19 . $.312 - $.344
09-22 . $.50 - $.594
09-25 . $.625 - $3.437
Price Range (Post-Split)
09-26 . $.31 - $.85........................... * $8.50 = Equivalent Pre-split Price
09-27 . $.34 - $.58
09-28 . $.25 - $.421
0-05 . $.20 - $.25
10-16 . $.20 - $.24
18 days Gain 87.5%
Forward Split Ratio of 15 for 1 - VNCAF - (OTCBB)
Announced on 18 Feb 2000... OS = 30,000,000...FLOAT = (I forgot it)
Price Range (Pre-Split)
02-17 . $.52 - $.50
02-18 . $.56 - $3.53
02-22 . $6.25 - $20.00
Price Range (Post-Split)
03-10. $.93 - $2.50......................... * $37.50 = Equivalent Pre-split Price
03-13 .$.68 - $1.25
14 days Gain 816%
Forward Split Ratio of 20 for 1 VCSY - (OTCBB)
Announced on Jan. 28, 2000... OS = 46,300,000...FLOAT = 7,800,000
Price Range (Pre-Split)
1-28 . $3.40 - $4.50
1-31 . $4.56 - $5.50
2-04 . $7.12 - $8.21
2-07 . $8.93 - $11.50
2-08 . $11.81 - $13.25
2-09 . $7.12 - $13.37
Price Range (Post-Split)
2-16 . $1.18 - $1.49
2-17 . $1.03 - $2.12
2-18 . $2.02 - $3.00
2-23 . $3.62 - $6.125.................... * $122.50 = Equivalent Pre-split Price
7 days Gain 62%
Forward Split Ratio of 47 for 1 WTPE/SKGV (OTCBB)
Announced on Nov. 27, 2000... OS = 5,290,000...FLOAT = 188,124
Price Range (Pre-Split)
11-27 . $1.50 - $7.12
11-28 . $3.00 - $4.75
12-08 . $4.75 - $6.50
12-13 . $5.37 - $6.75
12-14 . $5.12 - $7.00
Price Range (Post-Split)
12-21 . $.10 - $. 24......................... * $11.28 = Equivalent Pre-split Price
12-13 . $.11 - $.145
12-14 . $.10 - $.15
5 days Loss -3.2%
Forward Split Ratio of 15 for 1 SSCP - (OTCBB)
Announced on Aug 25, 2000... OS = 2,800,000...FLOAT = 1,500,000
Price Range (Pre-Split)
08-25 . $.75 - $.93
08-30 . $.93 - $1.25
09-06 . $1.18 - $1.50
09-11 . $1.50 - $2.00
09-13 . $2.40 - $3.68
09-28 . $3.34 - $3.72
Price Range (Post-Split)
10-03 . $.13 - $. 24......................... * $3.60 = Equivalent Pre-split Price
10-06 . $.12 - $.15
11-10 . $.15 - $.184
3 days Gain 525%
Forward Split Ratio of 30 for 1 DMPT/COBB (OTCBB)
Announced on Nov. 14,2000... OS = 860,001...FLOAT = 360,000
Price Range (Pre-Split)
11-14 . $2.47 - $6.00
Price Range (Post-Split)
11-15 . $0.187 - $0.437
11-16 . $0.437 - $1.25
11-17 . $1.000 - $1.25.................... * $37.50 = Equivalent Pre-split Price
Valiant try, but compare 2012 screenshot with your 2013 screenshot. The comparison shows LL Bradford LLC auditor is recent to AE**. The 2012 screenshot shows no auditor. The 2012 shows Hipple as Counsel. However, on May 28, 2013 it was released in PR that Jeff Benz was appointed as AE** Counsel. Obviously, AE** has simply not gotten around to updating that info at OTC.
May 28, 2013 /PRNewswire/ -- Alternative Energy Partners, Inc. (OTCBB: AEGY) today announces that it has appointed Jeffrey Benz, a corporate legal expert and experienced senior executive with substantial sports, entertainment, technology, and public company experience, as its contract General Counsel. The Company also announces the relocation of its corporate offices to Los Angeles, California.
2012 AEG* Company Info
2013 AEG* Company Info
stervc: Not post. By definition, treatise! Amazing work of DD and analysis. Explores new territory (MG as de facto IPO) with eye-opening implications for MG stock price when MG opens for trading. Makes strong case for holding/buying pre-split shares. The last section shows astonishing examples of forward split stocks (before and after). And there's a whole lot more to find there. Read it for yourself and decide. It's time well spent.
Nicely done, stervc.
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The chosen auditor passed muster with PCAOB inspection with flying colors. They found no deficiencies. Brick by brick the edifice is built.
Mayor is president of SKTO. SKTO hasn't appointed a CEO. Medical Greens appointment of CEO should make for a nice PR.
SKTO provides both management and consultancy services for medical mary jane collectives. Licensing, management, logistics, private banking and merchant services. MG will also play a useful role in assisting state(s) and municipalities in regulating MMJ, as Lt. Gov. Gavin Newsom indicates. That last point doesn't get much play, but is quite important in the big picture and adds value to the MG brand.
"Recently, SK3 announced that it has shifted its business model to focus purely on the medical marijuana space with the acquisition of Medical Greensâ„¢, a business that currently provides licensing, management, and logistic services for medical marijuana collectives throughout California.
Our team has been exceptional in establishing new client relationships, as we have assembled a complete state-of-the-art service package for the collectives we will manage and consult," states Kevin Allyn, Chairman of SK3. "We have teamed up with top industry experts to offer the highest quality of service and experience for our clients. Currently, we are working with several additional collectives in transitioning their current services and operations into Medical Greensâ„¢."
SK3 is a healthcare logistics and fulfillment consultancy focused on the delivery of alternative care and medicine. With seasoned management, breakthrough technology and best practices, SK3 brings standardization and transparency to this rapidly growing segment of the alternative care field."
Gavin Newsom:
"[I]t is refreshing to see public companies, like Medical Greens, take a thorough and compliant approach to defining industry standards. As (parent company) SK3 Group's Chairman, Kevin Allyn, continues to assemble his world class team, it's obvious that they are going to bring real change to medical marijuana by developing best practices to assist state and local governments better deliver, administer and monitor a controversial and growing industry."
Apparently, you didn't read PCAOB inspection report. LL Bradford LLC, SKTO's contracted auditor, passed with flying colors.
Stay tuned. The announcement of guests for interviews, LK's solicitation of questions for guests from his twitter followers, taping of interview, and broadcast of interview generally happens within a short time span. Sometimes, just several days.
In my view, the announcement of CEO for Medical Greens will stun the investment community. Chairman Allyn is well connected to the movers and shakers in key sectors.
The term Medical Greens doesn't limit the company to mary jane.
Building up a head of steam prior to Larry King interview when potentially millions of US and worldwide TV viewers, via cable television and satellite dish, can discover this gem. The coming audits will do much to solidify confidence.
Auditors LL Bradford LLC squeaky clean per PCAOB inspection. They will audit SK3 annual reports (2010-2012) and Medical Greens (MDGR) quarterly statements for periods up to and including June 30, 2013.
Auditors LL Bradford LLC squeaky clean per PCAOB inspection. They will audit SKTO annual reports (2010-2012) and Medical Greens quarterly statements for periods up to and including June 30, 2013.
The Larry King interview will blow the lid off this can. No self-interested person (that includes everyone) would sell off SKTO and miss an opportunity of that magnitude. The SKTO price is currently low. Market cap is a puny $6mil.
Through RT-TV, the LK interview with SKTO Chairman Kevin Allyn will be available to a potential TV viewership of 85 million Americans through cable or satellite. Not to mention the overseas availability of the RT-TV broadcast to another 400 million. Compared to the present awareness of SKTO, capturing even a smallish percentage of that enormous potential audience is an exciting game changer. Larry King is known worldwide. The subject of MJ is a red hot topic these days. Allyn is a Hollywood maven. All the elements are there to generate a healthy TV rating and an exponential increase in the awareness of SKTO/MG by popular media, business media, the investing public, and the public at large.
Ah, you noticed, too. Let's see what happens.
Really. This is a tempest in a teapot, another red herring to be dissected ad nauseam. However, for the sake of the neophytes, I think SKTO, on its website, should add the bit about "street name" which mention seems to be optional in merger announcements.
It's standard fare for mergers. In most cases, the company only addresses the certificate holders as to their disposition. In some cases, they refer to disposition of "street name" shares, but not as frequently as one might think. It's the certificate holders who have the onus of delivering their shares in a timely manner, not the beneficial holders of "street name" shares. They don't need to do anything to get the new shares. Having said that, SKTO might consider posting an addendum on their website about "street name" shares for novice stockholders.
Where did you dig this up? What's your point? It looks irrelevant.
Actually, it would be very surprising had they had left out the instructions on share certificate exchange. I can't seem to recall any merger announcements that didn't instruct shareholders as to the disposition of the certificates. It's quite common for the seminal shareholders, principals of a company or other affilates to hold their shares as physical certificates registered in their names.
A few merger PRs
Ralcorp Merger
Ralcorp shareholders will be sent a letter of transmittal with detailed written instructions for exchanging their Ralcorp stock certificates for the merger consideration.
Copperweld merger
Stockholders of record who hold shares in certificated form will receive a letter of transmittal to allow them to deliver their share certificates to the paying agent in exchange for the Merger consideration. Stockholders who hold shares through a bank or broker will not have to take any action to receive cash for their shares, as such payments will be handled by the bank or broker.
3SBio merger
Shareholders of record as of the effective time of the Merger who are entitled to the merger consideration will receive a letter of transmittal and instructions on how to surrender their share certificates in exchange for the merger consideration. Shareholders should wait to receive the letter of transmittal before surrendering their share certificates. For any questions relating to the share certificate surrender and payment procedures, shareholders of record may contact JPMorgan Chase Bank, N.A., the Share paying agent,
Exchanging SKTO for Medical Greens: Almost all investors hold SKTO shares in "street name" at their broker. The broker holds these shares in behalf of the account holder. The broker will exchange those "street name" SKTO shares for Medical Greens shares on your behalf in the ratio of 1 share SKTO to 3 shares MG. The new MG shares will automatically be credited to your account. The account holder doesn't need to do anything to receive the new shares of Medical Greens.
However, if you hold SKTO shares in your name, i.e., SKTO paper stock certificates registered in your name and held physically in your possession, you will be required to deposit those physical share certificates at your broker and he/she will handle the exchange of SKTO shares for the appropriate number of Medical Greens shares.