FINRA

RESPONDENT ACKERMAN 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

N/A

8/18/2015

8/2/2017

PURSUANT TO ARTICLE VI, SECTION 3 OF FINRA BY-LAWS, AND FINRA RULE 9554, RESPONDENT ACKERMAN IS SUSPENDED ON AUGUST 18, 2015 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. Suspension lifted on August 2, 2017.

UNSUITABLE SOLICITATIONS, MISREPRESENTATIONS, VIOLATION OF RULE 10B-5, COMMON LAW FRAUD, ORDINARY NEGLIGENCE, GROSS NEGLIGENCE, AND BREACH OF CONTRACT,

$942,000.00

The award against James Ackerman was discharged through Bankruptcy filed in U.S. Bankruptcy Ct., NJ, Case # 17-17957

ILLINOIS

RESPONDENT'S REGISTRATION AS A SALESPERSON IN THE STATE OF ILLINOIS IS SUBJECT TO REVOCATION PURSUANT TO SECTION 8.E.(1)(J) OF THE ILLINOIS SECURITIES LAW OF 1953 [815 ILCS 5] (THE "ACT"). DISQUALIFICATION BASED UPON FINRA AWC IN FILE NO. E9B200501420

Order

RESPONDENT SHALL CAUSE TO HAVE HIS REGISRATION AS A SALESPERSON IN THE STATE OF ILLINOIS WITHDRAWN WITHIN THREE (3) DAYS FROM THE ENTRY OF THIS CONSENT ORDER AND WILL NOT RE-APPLY FOR REGISTRATION FOR A PERIOD OF TWO (2) YEARS FROM THE ENTRY OF THIS CONSENT ORDER; AND IS LEVIED COSTS OF INVESTIGATION IN THE AMOUNT OF $1000.00

FINRA

SECTION 10(B) OF THE SECURITIES EXCHANGE ACT OF 1934, SEC RULE 10B-9, NASD RULES 1021, 2110, 3010, 3012 - A MEMBER FIRM, ACTING THROUGH ACKERMAN, ALLOWED A REGISTERED REPRESENTATIVE OF THE MEMBER FIRM TO ACT AS AN UNREGISTERED PRINCIPAL OF THE FIRM. A MEMBER FIRM, ACTING THROUGH ACKERMAN, FAILED TO ESTABLISH, MAINTAIN AND ENFORCE A SUPERVISORY SYSTEM AND WRITTEN PROCEDURES TO SUPERVISE THE ACTIVITIES OF EACH REGISTERED PERSON TO ACHIEVE COMPLIANCE WITH THE APPLICABLE RULES AND REGULATIONS. A MEMBER FIRM, ACTING THROUGH ACKERMAN, FAILED TO ENFORCE ITS SUPERVISORY SYSTEM AND WRITTEN PROCEDURES WITH RESPECT TO THE SECURITIES ACTIVITIES OF A BRANCH. THE FIRM, ACTING THORUGH ACKERMAN, FAILED TO PREPARE A WRITTEN INSPECTION REPORT THAT INCLUDED THE TESTING AND VERIFICATION OF ITS POLICIES AND PROCEDURES. THE FIRM, ACTING THORUGH ACKERMAN, FAILED TO ESTABLISH OR ENFORCE PROCEDURES FOR THE REVIEW BY A REGISTERED PRINCIPAL OF THE BUSINESS RELATED ELECTRONIC CORRESPONDENCE OF A BRANCH REGISTERED REPRESENTATIVES WITH THE PUBLIC. A FIRM, ACTING THROUGH ACKERMAN, FAILED TO DESIGNATE AND SPECIFICALLY IDENTIFY TO FINRA ONE OR MORE PRINCIPALS TO ESTABLISH, MAINTAIN AND ENFORCE A SYSTEM OF SUPERVISORY CONTROL POLICIES AND PROCEDURES. THE FIRM,ACTING THROUGH ACKERMAN, CAUSED THE RELEASE OF INVESTOR FUNDS FROM ESCROW BEFORE THE SATISFACTION OF A SALE ON A CONTINGENCY BASIS FOR THE RELEASE OF THE FUNDS. IN DOING SO THE FIRM WAIVED THE FEE IT WAS ENTITLED TO FOR WORK ON THE OFFERING, HOWEVER, THIS POSSIBILITY WAS NEVER DISCLOSED TO INVESTORS.

Acceptance, Waiver & Consent(AWC)

Monetary/Fine

$35,000.00

Suspension

REQUALIFICATION

WITHOUT ADMITTING OR DENYING THE FINDINGS, ACKERMAN, CONSENTED TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS; THEREFORE, HE IS FINED $35,000 AND SUSPENDED FROM ASSOCIATION WITH ANY FINRA MEMBER IN ANY PRINCIPAL CAPACITY FOR THREE MONTHS AND SUSPENDED FROM ASSOCIATION WITH ANY FINRA MEMBER IN ANY CAPACITY FOR 10 BUSINESS DAYS. THE SUSPENSION IN ANY PRINCIPAL CAPACITY IS IN EFFECT FROM OCTOBER 6, 2008 THROUGH JANUARY 5, 2009. THE SUSPENSION IN ANY CAPACITY IS IN EFFECT FROM OCTOBER 6, 2008 THROUGH OCTOBER 17, 2008. (CONT. IN COMMENTS)

IN DOING SO THE FIRM WAIVED THE FEE IT WAS ENTITLED TO FOR WORK ON THE OFFERING, HOWEVER, THIS POSSIBILITY WAS NEVER DISCLOSED TO INVESTORS. THE FIRM FAILED TO MAINTAIN CHECKS RECEIVED AND FORWARDED BLOTTER IN A BRANCH OFFICE. THE FIRM FAILED TO FILE SUMMARY AND STATISTICAL INFORMATION FOR CUSTOMER COMPLAINTS BY THE 15TH DAY OF THE MONTH FOLLOWING THE CALENDAR QUARTER IN WHICH THEY WERE RECEIVED.

NASD

NASD CONDUCT RULE 2110 AND NASD MEMBERSHIP AND REGISTRATION RULES 1021 AND 1031 - RESPONDENT ACKERMAN, ACTING ON BEHALF OF HIS MEMBER FIRM, PERMITTED AN INDIVIDUAL TO MAINTAIN HIS SECURITIES LICENSES EVEN THOUGH HE WAS NOT ACTIVE IN THE FIRM'S INVESTMENT BANKING OR SECURITES BUSINESS.

Decision

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

Monetary Penalty other than Fines

Suspension

COSTS.

THE HEARING PANEL FOUND THAT RESPONDENT ACKERMAN DID NOT VIOLATE NASD MEMBERSHIP AND REGISTRATION RULE 1031 BY MAINTAINING AN INDIVIDUAL'S REGISTRATION AS A SECURITIES REPRESENTATIVE. HEARING PANEL DECISION RENDERED MARCH 14, 2005 WHEREIN RESPONDENT ACKERMAN IS FINED $3,000, JOINTLY AND SEVERALLY. IN ADDITION, RESPONDENT ACKERMAN IS SUSPENDED FROM FUNCTIONING AS THE FIRM'S DIRECTOR OF COMPLIANCE FOR ONE YEAR FOR VIOLATING NASD MEMBERSHIP AND REGISTRATION RULE 1021 AND CONDUCT RULE 2110 BY MAINTAINING THE PRINCIPAL LICENSE OF A REGISTERED REPRESENTATIVE WHEN THE REPRESENTATIVE WAS NOT ACTING IN A PRINCIPAL CAPACITY AT THE FIRM. THE HEARING PANEL ALSO ORDERS THE RESPONDENT ACKERMAN TO JOINTLY AND SEVERALLY PAY THE $4,178.26 COSTS OF THE HEARING, WHICH INCLUDE AN ADMINISTRATIVE FEE OF $750 AND HEARING TRANSCRIPT COSTS OF $ 3,428.26. RESPONDENT ACKERMAN'S SUSPENSION SHALL COMMENCE ON MAY 2, 2005 AND THE SUSPENSION SHALL CONCLUDE ON MAY 1, 2006. THE DECISION BECAME FINAL MAY 2, 2005. FINES PAID.

THE NATIONAL ASSOCIATION OF SECURITIES DEALERS

NASD RULES 1021, 1022(B) AND 2110 - RESPONDENT MEMBER, ACTING THROUGH RESPONDENT ACKERMAN, ALLOWED AN INDIVIDUAL TO MAINTAIN HIS FINANCIAL AND OPERATIONS PRINCIPAL REGISTRATION WITH THE FIRM ALTHOUGH HE WAS NOT FUNCTIONING IN THIS CAPACITY FOR THE FIRM; AND, RESPONDENT ACKERMAN ACTED AS THE FINANCIAL AND OPERATIONS PRINCIPAL OF THE FIRM, WHILE FAILING TO HAVE REGISTERED IN THIS CAPACITY

Acceptance, Waiver & Consent(AWC)

Monetary/Fine

$9,500.00

Censure

CENSURE AND FINE $9,500

PRINCIPAL ACTED AS FINOP WITHOUT SERIES 27 LICENSE AND WAS FINED $6500.00. THE OTHER $3000.00 WAS CHARGED TO THE FIRM FOR ALLOWING ANOTHER INDIVIDUAL TO RETAIN HIS SERIES 27 LICENSE WHEN HE WAS NOT ACTING IN THAT CAPACITY.