FINRA

Without admitting or denying the findings, Weinstein consented to the sanctions and to the entry of findings that he submitted false expense reports, and accepted reimbursements from his member firm for ineligible expenses. The findings stated that each of the expense reports submitted falsely represented that Weinstein and multiple customers and potential customers had attended football games using tickets for which Weinstein sought reimbursement. In fact, Weinstein had sold the tickets to third parties, and neither he nor any customers or potential customers had attended the games. The findings also stated that by knowingly submitting false expense reports Weinstein caused the firm to maintain inaccurate books and records.

Acceptance, Waiver & Consent(AWC)

Bar (Permanent)

All Capacities

Indefinite

11/29/2016

Sterne Agee Financial Services, Incl

Discharged

Without admitting or denying the findings, Weinstein consented to the sanctions and to the entry of findings that he submitted false expense reports, and accepted reimbursements from his member firm for ineligible expenses. The findings stated that each of the expense reports submitted falsely represented that Weinstein and multiple customers and potential customers had attended football games using tickets for which Weinstein sought reimbursement. In fact, Weinstein had sold the tickets to third parties, and neither he nor any customers or potential customers had attended the games. The findings also stated that by knowingly submitted false expense reports Weinstein caused the firm to maintain inaccurate books and records.

FINRA

Discharged

Without admitting or denying the findings, Weinstein consented to the sanctions and to the entry of findings that he submitted false expense reports, and accepted reimbursements from his member firm for ineligible expenses. The findings stated that each of the expense reports submitted falsely represented that Weinstein and multiple customers and potential customers had attended football games using tickets for which Weinstein sought reimbursement. In fact, Weinstein had sold the tickets to third parties, and neither he nor any customers or potential customers had attended the games. The findings also stated that by knowingly submitted false expense reports Weinstein caused the firm to maintain inaccurate books and records.

Bankruptcy

MORGAN STANLEY SMITH BARNEY

Voluntary Resignation

ALLEGATIONS CONCERNING EMPLOYEE'S EXPENSE REIMBURSEMENT SUBMISSIONS

THIS INVESTIGATION WAS LAUNCHED AFTER I FILED A DISPUTE AGAINST MY MANAGEMENT TEAM FOR THEIR FAILURE TO PAY MY AGREED UPON BONUS. THIS INVESTIGATION DID NOT INVOLVE CLIENTS. AS NOTED ON THE U-5, I VOLUNTARILY RESIGNED FROM THE FIRM. AFTER MY VOLUNTARY RESIGNATION, WITH THE HELP OF OUTSIDE COUNSEL, I FILED A DISPUTE AGAINST THE FIRM FOR THEIR FAILURE TO PAY AN AGREED UPON BONUS.

CLAIMANT ALLEGES, INTER ALIA, THAT FROM JAN 2012 TO OCT 2012 THE FA TRADED EXCESSIVELY, MADE UNSUITABLE RECOMMENDATIONS, AND MADE UNAUTHORIZED TRADES.

$112,603.00

$56,500.00

THIS MATTER WAS SETTLED FOR BUSINESS REASONS IN ORDER TO AVOID THE COST AND UNCERTAINTY OF LITIGATION. THE FINANCIAL ADVISOR DID NOT CONTRIBUTE TO THE SETTLEMENT. ****THE SETTLEMENT AMOUNTS FROM MORGAN STANLEY AND RBC CAPITAL ARE DIFFERENT. THEY HAVE BEEN ADDED TOGETHER FOR AN AMOUNT OF $56,500.00 IN SECTION 11******

ATTORNEY, ON BEHALF OF THE NEW JERSEY CLIENTS, ASSERTED THAT CHANGES WERE MADE TO THE CLIENTS' INVESTMENT SELECTIONS AT THE END OF 2007 WITHOUT PROPERLY ADVISING THE CLIENTS AS TO THE EFFECTS OF MAKING SUCH CHANGES. THE CLIENTS FURTHER CLAIM THAT THE TAX CONSEQUENCES OF THE CHANGE, THE DIFFERENT FEE ARRANGEMENT AND SEVERAL OTHER ITEMS WERE NOT MADE CLEAR TO THEM. THE CLIENTS SIGNED PAPERWORK TO CONVERT THEIR JOINT ACCOUNT TO A FUNDSOURCE ACCOUNT IN SEPTEMBER 2007. PER THE FUNDSOURCE PROGRAM, THE SECURITIES THAT WERE HELD IN THE ACCOUNT WERE LIQUIDATED IN OCTOBER 2007 SO THAT THE OPTIMAL BLEND MODERATE GROWTH MUTUAL FUND PORTFOLIO THAT THEY HAD SELECTED COULD BE IMPLEMENTED FOR THEIR JOINT ACCOUNT. FUNDSOURCE IS A DISCRETIONARY MUTUAL FUND WRAP FEE PROGRAM PROVIDING THE CLIENTS WITH ACCESS TO OVER 25 OPTIMAL BLEND FUND PORTFOLIOS THAT ARE ACTIVELY MANAGED BY THE FIRM'S MANAGER STRATEGY GROUP. NO DAMAGES WERE SPECIFIED BUT DAMAGES ARE REASONABLY BELIEVED TO BE IN EXCESS OF $5,000.

$5,001.00

THE FIRM DENIED THE COMPLAINT ON JUNE 18, 2008 VIA A LETTER TO THE CLIENTS' ATTORNEY. THE FA DISCUSSED THE FUNDSOURCE PROGRAM WITH THE CLIENT AND HE PROVIDED INFORMATION TO THE CLIENT ABOUT HOW THE PROGRAM WORKED, THE FEE STRUCTURE, ETC. THE FEE ARRANGEMENT WAS SET-FORTH ON THE FUNDSOURCE AGREEMENT THAT THE CLIENT HAD SIGNED TO OPEN HER FUNDSOURCE ACCOUNT. THE FA INFORMED THE CLIENT THAT HER EXISTING PORTFOLIO WOULD BE LIQUIDATED. THE FA DISCUSSED ALL TAX CONSEQUENCES WITH THE CLIENT AND A DETERMINATION WAS MADE TO KEEP AT LEAST $4,000 IN A MONEY MARKET FUND TO ASSIST IN PAYING THE ESTIMATED CAPITAL GAINS TAXES WHEN DUE IN 2008. THE OPTIMAL BLEND MODERATE GROWTH MUTUAL FUND PORTFOLIO SELECTED BY THE CLIENT WAS CONSISTENT WITH HER INVESTMENT OBJECTIVE AND RISK TOLERANCE.

NEW JERSEY RESIDENT WRITES THAT HIS FUNDSOURCE ACCOUNTS DID NOT HAVE THE APPROPRIATE ASSET ALLOCATION BASED ON HIS AGE AND RISK TOLERANCE. CLIENT IS REQUESTING A REFUND OF $24,000 FOR THE FEES THAT HE PAID TO WACHOVIA SECURITIES. THE CLIENT WROTE THAT THE ACTIVITY COMPLAINED ABOUT OCCURRED BETWEEN 1/18/2006 AND 1/19/2007.

$24,000.00

DENIED BY FIRM. CLIENT DID NOT PAY $24,000 IN FEES FOR FUNDSOURCE PROGRAM; HE PAID APPROXIMATELY $12,190.57 IN FEES FOR FUNDSOURCE. THE CLIENT'S ASSET ALLOCATION FOR HIS PORTFOLIOS WAS CONSISTENT WITH HIS STATED INVESTMENT OBJECTIVES FOR EACH PORTFOLIO AND THE SIGNED CLIENT PROFILE/INVESTMENT FORMS. OVERALL, THE CLIENT HAD NET GAINS IN ALL OF HIS ACCOUNTS.

UNSUITABLE & UNAUTHORIZED TRADES. ALLEGED LOSSES OF $40,000.00.

$45,000.00

$35,000.00

PRUDENTIAL-BACHE SETTLED WITH CUSTOMER FOR AMOUNT OF $35,000.00. Not Provided

UNAUTHORIZED TRADING. ALLEGED LOSSES OF $35,000.00.

$35,000.00

$36,000.00

SETTLEMENT MADE BY PRUDENTIAL-BACHE (8/10/92) FOR AMOUNT OF $36,000.00. Not Provided