Client alleges misappropriate of funds.

$386,871.00

$150,000.00

FINRA

Respondent Steffany failed to comply with an arbitration award or settlement agreement or to satisfactorily respond to a FINRA request to provide information concerning the status of compliance.

Letter

Suspension

All Capacities

Indefinite

Continues until required payment is made or discharged.

7/14/2020

Pursuant to Article VI, Section 3 of FINRA By-Laws, and FINRA Rule 9554, Respondent Steffany is suspended on July 14, 2020 for failure to comply with an arbitration award or settlement agreement or to satisfactorily respond to a FINRA request to provide information concerning the status of compliance.

On behalf of a Trustee, an attorney alleges that on or before 2007 the financial advisor withdrew funds from a trust for personal use.

Claimant trustee alleges that between March 2004: June 2007 the FA engaged in an ongoing fraudulent course of conduct by repeatedly withdrawing funds from an AGE trust account which resulted in the theft of approximately $45,648.19 for the FA's personal use or purposes not permitted under the trust.

$45,648.19

$37,500.00

ARBITRATION ALLEGES FRAUD, NEGLIGENT SUPERVISON, NEGLIGENCE, SUITABILITY AND CONVERSION. ACTIVITY DATE IS 7/5/07 THRU 6/30/17. (LITIGATION ALLEGED FRAUD, NEGLIGENCE, CUTPA AND MISAPPROPRIATION OF FUNDS. DATE OF ACTIVITY: 7/1997 - 6/30/2017.)

$600,000.00

$125,000.00

Connecticut

On May 13, 2016, the Banking Commissioner entered a Consent Order (No. CO-16-8275-S) with respect to Paul Anthony Steffany, a former broker-dealer agent of Raymond James & Associates, Inc. The Consent Order alleged that grounds existed for initiating administrative proceedings under Section 36b-15(a) of the Connecticut Uniform Securities based on an October 8, 2015 bar (No. 2014041650301) imposed by the Financial Industry Regulatory Authority against Steffany. The FINRA action had alleged that Steffany was trustee of a testamentary trust for an estate that was a customer of Raymond James; that from January 2007 through April 2014, Steffany violated NASD Rule 2330(a), FINRA Rule 2150(a), NASD Rule 2110, and FINRA Rule 2010 by converting at least $112,742 of estate funds purportedly as compensation for Steffany's services as trustee; that Steffany converted the funds by transferring monies from the estate's brokerage account at Raymond James to an estate bank account held outside of the firm, having the bank account statements sent to his home to conceal his conduct from Raymond James and writing checks from the estate account to cover his personal expenses; and that from August 2007 through April 2014, Steffany violated NASD Rule 2110 and FINRA Rule 2010 by forging the signature of a co-executor on at least twelve checks made payable to the estate and later used certain of these funds for his personal use. According to the FINRA action, Steffany ultimately refunded approximately $112,742 to the estate and resigned as trustee.

Consent

Bar (Permanent)

See description

Permanent

Permanent bar.

5/13/2016

12/31/2026

The Consent Order permanently barred Steffany from 1) transacting business in or from Connecticut as a broker-dealer, agent, investment adviser or investment adviser agent; 2) soliciting or accepting funds for investment purposes from public or private investors in or from Connecticut; 3) engaging in any activity that would require Steffany to obtain a license or register under Chapters 668 or 669 of the Connecticut General Statutes governing Nondepository Financial Institutions and Regulated Activities, respectively, and 4) serving as a control person, qualified individual or branch manager of any entity regulated by the Commissioner under Chapter 668 of the Connecticut General Statutes.

Arizona Corporation Commission Securities Division

Mr. Steffany entered into a Letter of Acceptance Waiver and Consent with FINRA pursuant to which he agreed to a permanent bar from association with any FINRA member. The permanent bar is grounds to revoke Mr. Steffany's registration as a securities salesman pursuant to A.R.S. §44-l962(A)(8).

Consent

Revocation

FINRA

Without admitting or denying the findings, Steffany consented to the sanction and to the entry of findings that he converted funds belonging to his member firm's customer, an estate with a testamentary trust for which he served as the trustee, by taking from the estate at least $112,742 purportedly as compensation for serving as the trustee. The findings stated that Steffany converted the funds by paying Steffany trustee fees that were excessive and inconsistent with the limited nature of his duties as trustee. The trust was established for the benefit of the son and grandchildren of the decedent. Steffany kept no records of the time he spent on trust-related matters or the tasks he performed as trustee, but estimated that he spent no more than approximately forty-three hours per year on trust-related matters. The document governing the trust was silent on the amount of compensation to be paid to the trustee. Steffany paid himself trustee fees by transferring funds from the estate's brokerage account at the firm into a bank account held by the estate outside of the firm. Steffany arranged for the estate's bank account statements to be sent to his home address. In doing so, Steffany concealed his misconduct from the firm. Although Steffany refunded approximately $112,742 to the estate and resigned as trustee, he did not do so until after the firm commenced an investigation into his administration of the trust. The findings also stated that Steffany forged the signature of a co-executor on checks made payable to the estate. Steffany deposited the checks into the estate's bank account held outside of the firm and subsequently used certain of these funds for his personal use. Specifically, Steffany arranged for checks made payable to the estate to be issued from the estate's brokerage account at the firm. The checks, which totaled $247,000, were made payable to the estate in the name of Steffany, who was an executor of the estate, and the co-executor. Steffany endorsed twelve of these checks, totaling $170,000, by signing his own name and forging the signature of his co-executor. Steffany endorsed the remaining checks "for deposit only."

Acceptance, Waiver & Consent(AWC)

Bar (Permanent)

All Capacities

10/8/2015

RAYMOND JAMES & ASSOCIATES

Discharged

VIOLATION OF COMPANY POLICY, ADMITTED TO IMPROPER ENDORSEMENTS ON CHECKS. AS OF THIS FILING RAYMOND JAMES IS NOT AWARE OF ANY COMPLAINTS BY ITS CUSTOMERS RELATING TO THIS CONDUCT.