FINRA

NASD RULES 2110, 2330, AND 3040: HILL IMPROPERLY USED $1,800,000 IN FUNDS BELONGING TO A CUSTOMER AND ENGAGED IN A PRIVATE SECURITIES TRANSACTION WITHOUT PRIOR NOTICE TO HIS MEMBER FIRM. HILL AND HIS WIFE FORMED A COMPANY TO SERVE AS AN INVESTMENT VEHICLE FOR INVESTMENTS IN A MANUFACTURER AND DISTRIBUTOR OF A DENTAL PROSTHESIS THAT SNAPS OVER A PATIENT'S NATURAL TEETH. HILL SOLICITED A CUSTOMER TO INVEST IN HIS COMPANY. THE CUSTOMER AGREED TO THIS INVESTMENT AND HILL ACCORDINGLY CAUSED THE TRANSFER OF $103,000 FROM THE CUSTOMER'S ACCOUNT AT THE FIRM TO AN AFFILIATE OF HILL'S COMPANY. WITHIN HOURS OF THIS TRANSFER, HILL CAUSED THE TRANSFER OF AN ADDITIONAL $220,000 FROM THE CUSTOMER'S ACCOUNT AT THE FIRM TO AFFILIATE OF HILL'S COMPANY. LATER THAT DAY, HILL CAUSED THE TRANSFER OF AN ADDITIONAL $1,477,000 FROM THE CUSTOMER'S ACCOUNT AT THE FIRM TO THE AFFILIATE. FOLLOWING THESE TRANSACTIONS, AND UNBEKNOWNST TO THE CUSTOMER, HILL'S COMPANY AND THE AFFILIATE EXECUTED A SECURED PROMISSORY NOTE. HILL'S COMPANY FINANCED THE NOTE USING $1,800,000 OF THE CUSTOMER'S FUNDS PLUS $200,000 CONTRIBUTED BY HILL AND A THIRD-PARTY, FOR A TOTAL OF $2 MILLION. PURSUANT TO THE NOTE, THE AFFILIATE AGREED TO PAY HILL'S COMPANY, NOT THE CUSTOMER, INTEREST AT A RATE PER ANNUM EQUAL TO TWENTY PERCENT ON THE AGGREGATE UNPAID PRINCIPAL BALANCE. HILL DID NOT INFORM HIS FIRM IN WRITING OF THE FOREGOING TRANSACTIONS AND INVESTMENTS.

Acceptance, Waiver & Consent(AWC)

Bar (Permanent)

All Capacities

Indefinite

11/17/2011

WITHOUT ADMITTING OR DENYING THE FINDINGS, HILL CONSENTED TO THE DESCRIBED SANCTION AND TO THE ENTRY OF FINDINGS, THEREFORE, HE IS BARRED FROM ASSOCIATION WITH ANY FINRA MEMBER IN ANY CAPACITY.

NEW JERSEY BUREAU OF SECURITIES

HILL FAILED TO ADEQUATELY DISCLOSE OUTSIDE BUSINESS ACTIVITIES AND THE SOLICATATION AND SALE OF SECURITIES TO FIRM CLIENTS FOR UNAPPROVED INVESTMENTS. HILL ENGAGED IN DISHONEST OR UNETHICAL PRACTICES IN THE SECURITIES BUSINESS.

Order

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

$210,000.00

Revocation

HILL IS DENIED ALL EXEMPTIONS CONTAINED IN N.J.S.A. 49:3-50 SUBSECTION (A) PARAGRAPH 9, 10, AND 11 AND SUBSECTION (B). THE EXEMPTIONS TO THE REGISTRATION REQUIREMENTS PROVIDED BY N.J.S.A. 49:3-56(B), N.J.S.A. 49:3-56(C) AND N.J.S.A. 49:3-56(G) ARE REVOKED.