FINRA

FINRA RULES 2010, 8210, NASD RULES 2110, 3030, 3040 - BLAIR C. MIELKE RECEIVED COMPENSATION FOR OWNING AND PARTICIPATING IN THE MANAGEMENT OF A LIMITED LIABILITY COMPANY WITHOUT PROVIDING PROMPT WRITTEN NOTICE TO HIS MEMBER FIRM. MIELKE ENGAGED, FOR COMPENSATION, IN PRIVATE SECURITIES TRANSACTIONS BY PARTICIPATING IN THE SALE OF APPROXIMATELY $1.1 MILLION IN THE LIMITED LIABILITY COMPANY'S SECURITIES TO INVESTORS AND FAILED TO GIVE WRITTEN NOTICE TO, AND RECEIVE WRITTEN APPROVAL FROM, HIS FIRM. THE FIRM LATER APPROVED THE SALE OF THE SECURITIES TO INVESTORS. MIELKE COMPLETED AND SIGNED A FIRM-ISSUED OUTSIDE BUSINESS INTERESTS SCHEDULE WHICH REQUESTED IDENTIFICATION OF ALL OUTSIDE BUSINESS ACTIVITIES AND FAILED TO DISCLOSE HIS INVOLVEMENT WITH THE LIMITED LIABILITY COMPANY. AT A LATER DATE, MIELKE COMPLETED ANOTHER SCHEDULE DISCLOSING HIS INVOLVEMENT WITH THE COMPANY AND FALSELY STATED THAT THE COMPANY WAS IN THE PLANNING STAGES WHEN IT WAS, IN FACT, AN ACTIVE, ONGOING BUSINESS. MIELKE FAILED TO FULLY RESPOND TO FINRA REQUESTS FOR INFORMATION.

Order

Bar (Permanent)

All Capacities

Indefinite

7/18/2014

Monetary Penalty other than Fines

$2,468.85

HEARING PANEL DECISION RENDERED SEPTEMBER 20, 2012 WHEREIN MIELKE IS BARRED FROM ASSOCIATION WITH ANY FINRA MEMBER IN ANY CAPACITY FOR ENGAGING IN PRIVATE SECURITIES TRANSACTIONS IN VIOLATION OF FINRA RULE 2010 AND NASD RULES 2110 AND 3040; MAKING MISSTATEMENTS ON COMPLIANCE QUESTIONNAIRES OF A FINRA MEMBER FIRM IN VIOLATION OF FINRA RULE 2010 AND NASD RULE 2110; AND FAILING TO TIMELY RESPOND TO FINRA REQUESTS FOR INFORMATION ISSUED PURSUANT TO FINRA RULE 8210, IN VIOLATION OF FINRA RULES 2010 AND 8210. THE PANEL ALSO FINDS THAT MIELKE ENGAGED IN OUTSIDE BUSINESS ACTIVITIES IN VIOLATION OF NASD RULE 3030 AND FINRA RULE 2010. IN LIGHT OF THE BAR, THE HEARING PANEL FINDS IT UNNECESSARY TO IMPOSE ADDITIONAL SANCTIONS UPON MIELKE. ON OCTOBER 4, 2012, MIELKE APPEALED TO THE NATIONAL ADJUDICATORY COUNCIL (NAC). NAC DECISION RENDERED JULY 18, 2014 WHEREIN THE FINDINGS ARE AFFIRMED, IN RELEVANT PART, AND THE SANCTIONS MODIFIED. THE NAC IMPOSED THREE SEPARATE BARS ON MIELKE FOR HIS MISCONDUCT, ONE FOR PRIVATE SECURITIES TRANSACTIONS AND OUTSIDE BUSINESS ACTIVITIES, ONE FOR THE MISSTATEMENTS ON THE COMPLIANCE QUESTIONNAIRE, AND ONE FOR THE FAILURE TO RESPOND COMPLETELY AND TIMELY TO THE INFORMATION AND DOCUMENT REQUESTS. IN ADDITION, MIELKE MUST PAY, JOINTLY AND SEVERALLY, APPEAL COSTS OF $2,468.85. THE BAR IS EFFECTIVE AS OF JULY 18, 2014. ON AUGUST 19, 2014, MIELKE APPEALED THE DECISION TO THE SECURITIES AND EXCHANGE COMMISSION (SEC). THE BAR REMAINS IN EFFECT WHILE ON APPEAL. SEC ADMIN RELEASE 34-75981/SEPTEMBER 24, 2015: THE SEC SUSTAINED FINRA'S FINDINGS OF VIOLATIONS AND SANCTIONS IMPOSED. On November 19, 2015 this matter was appealed to the U.S. Court of Appeals for the 11th Circuit. The bar remains in effect. On May 19, 2016, the U.S. Court of Appeals for the 11th Circuit issued a mandate dismissing Miekle's appeal. The decision is final on August 17, 2016.

FINRA

NASD RULES 2110, 3040 - BLAIR CHRISTOPHER MIELKE ENGAGED IN PRIVATE SECURITIES TRANSACTIONS AND FAILED TO PROVIDE PRIOR WRITTEN NOTICE TO HIS MEMBER FIRM DESCRIBING THE PROPOSED TRANSACTIONS AND THE FACT THAT HE REFERRED CUSTOMERS TO A THIRD-PARTY ENTITY NOR DID HE RECEIVE HIS FIRM'S APPROVAL OF HIS PRIVATE SECURITIES TRANSACTIONS.

Acceptance, Waiver & Consent(AWC)

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

Suspension

WITHOUT ADMITTING OR DENYING THE FINDINGS, MIELKE CONSENTED TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS; THEREFORE, HE IS FINED $5,000 AND SUSPENDED FROM ASSOCIATION WITH ANY FINRA MEMBER IN ANY CAPACITY FOR SIX MONTHS. THE SUSPENSION IN ANY CAPACITY IS IN EFFECT FROM MAY 19, 2008 THROUGH NOVEMBER 18, 2008. FINE PAID ON 05/01/09.