CLAIMANT ALLEGES THAT MR. REUBEN CHURNED HIS ACCOUNT, MADE MATERIAL MISREPRESENTATIONS AND VIOLATED MARGIN RULES.

$500,000.00

$12,500.00

THE SETTLEMENT WAS ENTERED INTO WITHOUT ADMITTING OR CONCEDING ANY LIABILITY AND DUE TO THE COST OF POTENTIAL LITIGATION.

CLAIMANT ALLEGES THAT MR. REUBEN MADE MISREPRESENTATIONS AND CHURNED HIS ACCOUNT. ALLEGED DAMAGES ARE BETWEEN $200,000 AND $500,000.

$200,000.00

$12,500.00

CLIENT ALLEGES THAT DAVID REUBEN ENGAGED IN UNAUTHORIZED TRADING AND CHURNED HIS ACCOUNT. CLIENT ALLEGES HE SUSTAINED TRADING LOSSES OF APPROXIMATELY $520,000 AND LOST PROFITS OF OVER $4,000,000.

$520,000.00

$48,500.00

TO AVOID THE COST AND UNCERTAINTIES OF POTENTIAL LITIGATION, AND WITHOUT ADMITTING LIABILITY, GRUNTAL & CO., L.L.C. PAID THE [CUSTOMERS] $48,500 IN FULL SETTLEMENT OF THE COMPLAINT.

THE CLIENTS ALLEGED THAT DAVID REUBEN WAS TRADING IN CUSTOMER`S ACCOUNT WITHOUT AUTHORIZATION. THE FURTHER ALLEGED THAT A JOINT ACCOUNT WAS ESTABLISHED WITHOUT THEIR KNOWLEDGE AND THAT UNAUTHORIZED TRADING OCCURRED IN THAT ACCOUNT. THE CLIENTS CLAIM LOSSES OF $50,000.

$50,000.00

GRUNTAL & CO, L.L.C. INVESTIGATED THE CLIENTS' ALLEGATIONS AND CONCLUDED THAT THEY WERE WITHOUT MERIT. THE CLAIM WAS DENIED.

NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC.

Acceptance, Waiver & Consent(AWC)

Monetary/Fine

$2,000.00

Censure

Not Provided

ON 7/23/87, I OPENED AN ACCOUNT FOR [CUSTOMER] AS INSTRUCTED AT HIS SISTER'S PENNSYLVANIA ADDRESS. [CUSTOMER] FOUND MONTHS LATER THAT HE WAS UNSATISFIED WITH THE PROGRESS OF HIS INVESTMENT AND TOLD ME THAT BECAUSE THE ADDRESS USED TO OPEN THE ACCOUNT WAS NOT HIS CORRECT ADDRESS THE INFORMATION HAD BEEN FALSIFIED BY ME TO FACILITATE A TRANSACTION FOR HIM, GIVING HIM GROUND FOR RECISION.

$12,004.76

$12,004.76

THE CLIENT WAS REFUNDED TOTAL VALUE OF STOCKS IN HIS ACCOUNT AT THEIR PURCHASE PRICES-TOTALING $12004.76 A TOTAL AMOUNT OF $4702.00 WAS REPAID BY ME TO STUART JAMES ON MONTHLY PAYMENTS AND THE BALANCE PAID BY STUART JAMES-PAYMENTS WERE MADE MONTHLY FOR $1000 OVER 5 MONTHS. THE CUSTOMER INVOLVED WAS REFERED TO ME FROM HIS SISTER AND PROPOSED THE TEMPORARY ADDRESS SWITCH. WHILE I REALIZE THE FALSIFICATION OF FIRM DOCUMENTS WAS IMPROPER PROCEDURE IT WAS DONE TO OBLIGE THE REQUEST OF A NEW CLIENT TO PURCHASE STOCK IN A COMPANY WHICH OTHER OF HIS FAMILY MEMBERS HAD GOTTEN INVOLVED. AFTER THE INVESTMENT DIDN'T WORK OUT IN HIS FAVOR ALMOST A YEAR LATER, HE ASKED TO HAVE ALL HIS MONEY RETURNED TO HIM BECAUSE HE BEING A LAWYER KNEW HE HAD HAD HIS ADDRESS FALSIFIED AND KNEW HE HAD A LOOPHOLE FROM WHICH HE COULD CLAIM & HAD DONE SOMETHING WRONG.