Failure to Follow Customer Instructions. On January 9, 2017, Customer [Customer] sent an email essentially stating that her Advisor, Mr. Berkowitz (i) erroneously liquidated two accounts, one of which was titled in her name individually and the other jointly with her husband, contrary to her intended oral instructions in November of 2016 to monitor the accounts and liquidate enough losses to offset capital gains distributions to the extent possible for tax year 2016; and (ii) that no transactions should have occurred without the written signatures of both her and her husband in accordance with an existing agreement. After due investigation, it was determined that on December 8, 2016 Customer reminded Mr. Berkowitz to monitor the accounts for that capital gains determination, however, Mr. Berkowitz followed what he believed in good faith to be appropriate instructions to liquidate both accounts in November of 2016; that there was an obvious miscommunication between the parties and that the firm was at all relevant times in regular contact with the Customer concerning this matter."

$6,100.00

After conducting a thorough investigation, this matter was resolved by written agreement dated February 3, 2017 wherein (i) BPU agreed to reverse the trades to the extent possible to effect the Customers' intended instructions; and (ii) the Customers accepted, acknowledged and agreed that there was a mutual mistake and misunderstanding between the parties and that all oral and/or written complaints were are voluntarily withdrawn as if the same had never been made.

FAILURE TO SUPERVISE

$840,360.00

$187,500.00

BPU DID NOT REQUIRE AN INDIVIDUAL CONTRIBUTION FROM MR. BERKOWITZ FOR THE COMPENSATORY DAMAGES AWARDED TO THE CUSTOMER.

NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC.

NASD RULES 2110 AND 2440 AND MSRB RULE G-37 - A MEMBER FIRM, ACTING THROUGH RESPONDENT BERKOWITZ, EFFECTED RISKLESS PRINCIPAL SALES OF EQUITY SECURITIES TO CUSTOMERS AT PRICES THAT WERE EXCESSIVE IN RELATION TO ITS COSTS OF ACQUIRING SUCH SECURITIES; AND,RESPONDENT MEMBER FAILED TO COMPLY WITH MSRB RULE G-37(E)(II) IN IT FILED ITS FORM G-37/38 REPORT LATE.

Acceptance, Waiver & Consent(AWC)

Monetary/Fine

$5,000.00

Censure

WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, BERKOWITZ CONSENTED TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS, THEREFORE, HE IS CENSURED AND FINED $5,000, JOINTLY AND SEVERALLY

Not Provided

NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC.

Decision & Order of Offer of Settlement

Monetary/Fine

$250.00

Censure