FINRA

FINRA RULES 2010, 8210, NASD RULES 2110, 2310, 3040, INTERPRETATIVE MATERIAL 2310-2: LEON FORMED A COMPANY THROUGH WHICH HE SOUGHT TO OPERATE AN INDEPENDENT BRANCH OF A BROKER-DEALER. WHILE ASSOCIATED WITH A MEMBER FIRM, LEON RECOMMENDED THAT A MARRIED COUPLE INVEST $167,000, MOST OF THEIR INVESTABLE ASSETS, IN THE COMPANY. THE RECOMMENDED SECURITY WAS SUPPOSED TO PAY ANNUAL INTEREST OF 7% ON A QUARTERLY BASIS OVER A FIXED TERM. LATER, WHILE ASSOCIATED WITH A DIFFERENT MEMBER FIRM, LEON CONTINUED TO RECOMMEND THAT THE COUPLE INVEST IN THE COMPANY. BASED ON LEON'S RECOMMENDATION, THE COUPLE INVESTED $167,000 IN THE COMPANY. PRIOR TO PARTICIPATING IN THE PRIVATE SECURITIES TRANSACTION, LEON DID NOT NOTIFY EITHER OF HIS MEMBER FIRMS OF HIS PROPOSED ROLE IN THE TRANSACTION. IN ADDITION, LEON DID NOT HAVE REASONABLE GROUNDS TO BELIEVE THAT THE RECOMMENDED INVESTMENT IN THE COMPANY WAS SUITABLE FOR THE COMPANY IN LIGHT OF THEIR INVESTMENT OBJECTIVES, FINANCIAL SITUATION AND NEEDS. THE RECOMMENDED INVESTMENT WAS TOO RISKY FOR THE COUPLE, A RETIRED COUPLE OF LIMITED MEANS. FURTHER, THE RECOMMENDATION LED TO MOST OF THEIR INVESTABLE ASSETS BEING OVERCONCENTRATED IN THE SECURITY. PRIOR TO ITS DISSOLUTION, THE COMPANY MADE INTEREST AND PRINCIPAL PAYMENTS TOTALING APPROXIMATELY $26,000 TO THE COUPLE, WHO HAVE LOST APPROXIMATELY $141,000 ON THEIR INVESTMENT IN THE COMPANY. LEON FAILED TO RESPOND COMPLETELY TO FINRA REQUESTS FOR INFORMATION AND DOCUMENTS.

Acceptance, Waiver & Consent(AWC)

Bar (Permanent)

All Capacities

Indefinite

5/16/2011

WITHOUT ADMITTING OR DENYING THE FINDINGS, LEON CONSENTED TO THE DESCRIBED SANCTION AND TO THE ENTRY OF FINDINGS; THEREFORE HE IS BARRED FROM ASSOCIATION WITH ANY FINRA MEMBER IN ANY CAPACITY.