FINRA

WITHOUT ADMITTING OR DENYING THE FINDINGS, WITTHOEFT CONSENTED TO THE SANCTIONS AND TO THE ENTRY OF FINDINGS THAT HE IMPROPERLY EXERCISED DISCRETION BY EFFECTING STOCK AND OPTION TRANSACTIONS IN A SINGLE CUSTOMER ACCOUNT AFTER THE END OF THE BUSINESS DAYS ON WHICH THE CUSTOMER AUTHORIZED THE TRANSACTIONS. THE FINDINGS STATED THAT WITTHOEFT FAILED TO OBTAIN WRITTEN AUTHORIZATION FROM THE CUSTOMER PERMITTING SUCH USE OF DISCRETION AND THE ACCOUNT HAD NOT BEEN ACCEPTED BY HIS MEMBER FIRM AS A DISCRETIONARY ACCOUNT.

Acceptance, Waiver & Consent(AWC)

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

$5,000.00

Suspension

ANY CAPACITY

30 BUSINESS DAYS

11/3/2014

12/15/2014

CUSTOMER CLAIMED THEY WERE UNSUITABLE

$15,000.00

CALTON & ASSOCIATES INC SETTLED THIS CUSTOMER COMPLAINT FOR THE AMOUNT OF $15,000.00 REIMBURSED CLIENT FOR TRANSACTION, IN ORDER TO AVOID UNNECESSARY EXPENSE AND BUSINESS DOWNTIME. THERE WAS NO EVIDENCE OF WRONGDOING. CLIENT IS STILL ACTIVE WITH SAME/SIMILAR STRATEGIES THAT THEY ORIGINALLY COMPLAINED ABOUT. THESE STRATEGIES PRESENTLY OCCUR ON AN UNSOLICITED BASIS. CUSTOMER IS STILL CLIENT TO DATE. SETTLEMENT BREAKDOWN: $6500 CALTON & ASSOCIATES, INC.; $7500.00 DENNIS TODD WHITTHOEFT.