FINRA

Stevens was named a respondent in a FINRA complaint alleging that he willfully failed to amend his Form U4 to disclose, or to timely amend his Form U4 to disclose, unsatisfied federal tax liens. The complaint alleges that Stevens also willfully failed to disclose an unsatisfied judgement against him in the amount of $634,387.65. The complaint also alleges that Stevens made false statements to his member firm regarding his tax liens and judgement in annual certifications. The complaint further alleges that Stevens failed to appear and provide on-the-record testimony requested by FINRA in connection with its investigation of his failure to timely update his Form U4.

Decision

Bar (Permanent)

All capacities

indefinite

8/17/2021

The decision includes a finding that Stevens willfully failed to disclose a material fact on a Form U4, and that under section 3(a)(39)(f) of the Securities Exchange Act of 1934 and Article III, Section 4 of the FINRA By-Laws, this omission makes him subject to a statutory disqualification with respect to association with a member.

Default decision rendered March 26, 2021 wherein Stevens is barred from association with any FINRA member in all capacities for failing to appear and provide on-the-record testimony. In light of the bar, no separate sanctions are imposed for Stevens' other violations. The sanction was based on the findings that Stevens failed to appear for and provide on-the-record testimony to FINRA in connection with its investigation into whether he had failed to make required disclosures on his Uniform Application for Securities Industry Registration or Transfer (Form U4). The finding stated that Stevens willfully failed to disclose or timely disclose numerous liens and a consent judgment on his Form U4. Stevens was aware of the liens on or about the dates they were recorded. The first lien Stevens disclosed was recorded seven weeks earlier. Stevens then removed it from his Form U4, only to disclose it again at a later date and remove it the following day. Stevens never disclosed three liens. One for nearly $216,000, one for almost $111,000, and one for a little over $9,000. Stevens ultimately disclosed the existence of the other liens, but late, sometimes years late. Stevens also inaccurately reported the release dates of other liens, falsely reported that liens had been released or discharged and removed previously disclosed, unsatisfied liens from his Form U4. Consequently, Stevens' Form U4 has portrayed a grossly inaccurate representation of his substantial tax liabilities. In addition, the IRS filed a complaint against Stevens to obtain a consolidated judgment for federal income taxes he owed for certain tax years, and to foreclose on several liens related to real estate he owned. The IRS and Stevens, through counsel, jointly moved for the entry of a consent judgment against him for the unpaid taxes, totaling $634,387. Stevens never disclosed the judgment on his Form U4. The findings also stated that Stevens submitted false statements on his member firm's annual compliance questionnaires. On April 19, 2021, Stevens appealed the decision to the NAC. On August 17, 2021, the NAC dismissed the appeal as abandoned. The March 26, 2021 default decision shall constitute the final disciplinary action of FINRA.

Investments made Sept 2016, allegations include common law fraud, breach of fiduciary duty, negligence and breach of contract

$100,000.00

$12,500.00

Claimant alleges unsuitable recommendations, breach of fiduciary duty, negligence, failure to supervise and breach of contract during period of 2012 to 2017.

$150,000.00

$30,000.00

Alleges unsuitable recommendations, breach of fiduciary duty, negligence, and breach of contract, beginning in early 2009.

$35,000.00

$202,431.00

Tax

$170,955.20

Tax

$74,768.51

Tax

$25,662.77

Tax

$96,045.07

Tax

Judgement/Lien Outstanding changed from No to Yes as Lien was re-filed by IRS.

WITH REGARD TO VARIABLE LIFE INSURANCE POLICIES PURCHASED IN JUNE 2001, CUSTOMER ALLEGES THAT THE RR ADVISED HIM THAT THE POLICIES WERE LIQUID AND THAT THEY WOULD BE SELF FUNDED BASED ON THE ORIGINAL CONTRIBUTION OF $12,000.00 INVESTED IN EACH POLICY

$24,000.00

WITH REGARD TO THE PURCHASE OF A VARIABLE ANNUITY IN NOVEMBER 2003, THE CUSTOMER ALLEGES THE FEATURES OF THE ANNUITY WERE NOT ADEQUATELY DISCLOSED AND THAT HER REQUEST FOR CANCELLATION OF THE ANNUITY WAS NOT HONORED. THE CUSTOMER REQUESTS A REFUND OF THE PREMIUMS PAID.

$50,000.00

NEW YORK LIFE PROCESSED THE CUSTOMER'S REQUEST TO EXERCISE THE 'FREE LOOK' OPTION OF THE ANNUITY WITHOUT ANY LOSS TO THE CUSTOMER OR COMPANY. I DISAGREE WITH THE ALLEGATIONS MADE BY THE CUSTOMER. THROUGH MULTIPLE MEETINGS WITH THE CUSTOMER, WE DISCUSSED WHAT THE ANNUITY WOULD AND WOULD NOT DO FOR HER.