FINRA

NASD RULES 2110, 2510(B): SEIBEL EFFECTED TRADES IN A CUSTOMER'S ACCOUNTS WITHOUT HER PRIOR APPROVAL. SEIBEL EFFECTED TRADES IN THREE ACCOUNTS HELD BY A CUSTOMER ON THE INSTRUCTIONS OF THE CUSTOMER'S SPOUSE. SEIBEL'S MEMBER FIRM DID NOT APPROVE THE ACCOUNTS AS DISCRETIONARY AND THE CUSTOMER HAD NOT GIVEN HIM PRIOR WRITTEN AUTHORITY TO EXERCISE DISCRETION OVER THE ACCOUNTS. LIKEWISE, THE CUSTOMER'S SPOUSE DID NOT PROVIDE SEIBEL WITH ANY POWER OF ATTORNEY OR OTHER WRITTEN AUTHORITY TO DIRECT THE ACTIVITY IN THE CUSTOMER'S ACCOUNTS.

Acceptance, Waiver & Consent(AWC)

Censure

Civil and Administrative Penalty(ies)/Fine(s)

$5,000.00

WITHOUT ADMITTING OR DENYING THE FINDINGS, SEIBEL CONSENTED TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS, THEREFORE HE IS CENSURED AND FINED $5,000. FINE PAID IN FULL DECEMBER 27, 2011.

CLAIMANTS STATE CLAIMS FOR: NEGLIGENCE; BREACH OF FIDUCIARY DUTY; BREACH OF CONTRACT, VIOLATION OF KANSAS SECURITIES ACT; FRAUD; VIOLATION OF KANSAS CONSUMER PROTECTION ACT. THE ACTS ARE ALLEGED TO HAVE OCCURRED BETWEEN JUNE OF 2006 AND NOVEMBER OF 2008 AND RELATED TO AN ALLEGED UNSUITABLE RECOMMENDATION MOVING THE CLAIMANTS FROM INDIVIDUAL ENTITIES TO EQUITY MUTUAL FUNDS, AND MAKING USE OF MARGIN. THERE IS ALSO AN ALLEGATION OF UNAUTHORIZED TRADING. (COMPENSATORY DAMAGES OF $310,000 PLUS PUNITIVE DAMAGES, ATTORNEYS FEES, AND COSTS.)

$310,000.00

$82,500.00

SETTLED FOR $82,500.00