CBOE

see summary

Decision

Monetary/Fine

$5,000.00

Censure

censured and fined $5,000

NOT PROVIDED

CUSTOMER ORALLY EXPRESSED DISSATISFACTION WITH REGARD TO THE RECOMMENDATION OF SECURITY THAT HAD PRECIPITOUSLY DECLINED IN VALUE, RESULTING IN A SUBSTANTIAL PAPER LOSS.

$40,000.00

$40,000.00

PAULI & COMPANY DENIED ANY LIABILITY FOR THE CLIENT'S LOSSES, BUT AGREED TO PAY $40,000 IN SETTLEMENT TO RESOLVE AN APPARENT MISUNDERSTANDING REGARDING THE SECURITIES, AND REQUIRED THE CUSTOMER TO DIRECT ALL FUTURE SECURITIES TRANSACTIONS THROUGH A DESIGNATED PRINCIPAL OF THE COMPANY.

STIFEL NICOLAUS

Discharged

NONE CLAIM ALLEGED UNSUITABLE INVESTMENTS AND CONTINUED MISREPRESENTATION OF ACCOUNT STATUS, TRADING LOSSES AND INVESTMENT RISK RESULTING IN LOSSES OF $39,253.58.

TERMINATION OF JEFF GELBER AND SETTLEMENT WITH CLIENT IN THE AMOUNT OF $21,500.00 BY STIFEL NICHOLAUS. PLEASE SEE DRP FOR 22 H (1) AND H (2).

CLAIM ALLEGED UNSUITABLE INVESTMENTS AND CONTINUED MISREPRESENTATION OF ACCOUNT STATUS, TRADING LOSSES AND INVESTMENT RISK RESULTING IN LOSSES OF $39,253.58

$39,253.58

$21,500.00

TERMINATION OF JEFF GELBER AND SETTLEMENT WITH CLIENT IN THE AMOUNT OF $21,500.00 BY THE STIFEL, NICOLAUS. AFTER MY PHONE AND PERSONAL MEETINGS WITH [CUSTOMER], I INITIATED A COVERED CALL WRITING PROGRAM TO ACHIEVE HER GOALS OF CAPITAL APPRECIATION AND MONTHLY INCOME. ALL RECOMMENDATIONS AND TRANSACTIONS WERE DISCUSSED AND APPROVED BY MY CLIENT. HER GOALS AND WELL BEING WERE ALWAYS AT THE FOREFRONT OF THE DECISION MAKING PROCESS. SHORTLY AFTER INITIAL PORTFOLIO WAS CONSTRUCTED SHE REQUESTED A LARGE SUM OF $56,000 TO BE DRAWN OUT, ALONG WITH AN INCREASE TO $1,500 FROM THE $900/MONTH IN INCOME. THE COMBINATION OF THE ABOVE CHANGES, MARGIN INTEREST, AND A MONTH OF POOR STOCK PERFORMANCE PLACED THE ACCOUNT IN AN EARLY DEFICIT. I FELT THE SITUATION WOULD TURN AROUND AND EXPRESSED THOSE FEELINGS TO [CUSTOMER]. I WAS ALWAYS UP FRONT TO MY CLIENT THROUGH OUR RELATIONSHIP. SHE MADE THE POINT THAT FRIENDS AND RELATIVES WERE AWARE OF ALL ACTIVITY DURING OUR ASSOCIATON. IN THE END THE COMPLAINT PROCEEDINGS WERE INTITATED BY THOSE SAME FRIENDS AND RELATIVES. [CUSTOMER] MENTIONED TO MY ASSISTANT MANAGER IN A PHONE CONVERSATION THAT SHE WAS NOT UPSET WITH ME, BUT WAS MAD AT THE LACK OF SUPERVISION ON THE PART OF STIFEL, NICOLAUS, INC.