MARYLAND

RESPONDENT ENGAGED IN UNAUTHORIZED TRADING, AND EXCESSIVE AND UNSUITABLE TRADING IN CERTAIN CUSTOMER ACCOUNTS.

Order

Bar (Permanent)

ALL CAPACITIES

PERMANENT

PERMANENT, NO DATE TO BE SPECIFIED

7/11/2011

Cease and Desist

FINRA

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

Acceptance, Waiver & Consent(AWC)

Bar (Permanent)

All Capacities

Indefinite

5/11/2011

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

FINRA

RESPONDENT FAILED TO COMPLY WITH AN ARBITRATION AWARD OR SETTLEMENT AGREEMENT OR TO SATISFACTORILY RESPOND TO A FINRA REQUEST TO PROVIDE INFORMATION CONCERNING THE STATUS OF COMPLIANCE.

LETTER

Suspension

ALL CAPACITIES

N/A

1/6/2011

PURSUANT TO ARTICLE VI, SECTION 3 OF FINRA BY-LAWS, AND FINRA RULE 9554, RESPONDENT'S FINRA REGISTRATION IS SUSPENDED JANUARY 6, 2011 FOR FAILURE TO COMPLY WITH AN ARBITRATION AWARD OR SETTLEMENT AGREEMENT OR TO SATISFACTORILY RESPOND TO FINRA REQUESTS TO PROVIDE INFORMATION CONCERNING THE STATUS OF COMPLIANCE.

FRAUD, CONSTRUCTIVE FRAUD, BREACH OF FIDUCIARY DUTY, NEGLIGENT MISREPRESENTATION/OMISSION, NEGLIGENCE, BREACH OF CONTRACT, VIOLATION OF MARYLAND SECURITIES ACT, VIOLATION OF FINRA RULES

$227,965.00

CUSTOMER ALLEGES THAT MR. MEANS ENGAGED IN CHURNING, MISPRESENATIONS, UNAUTHORIZED TRADING AND UNSUITABLE TRANSACTIONS IN HER ACCOUNT.

$568,242.00

$508,550.00

The Award has not been paid.

FINRA

JOHN MEANS FAILED TO COMPLY WITH AN ARBITRATION AWARD OR SETTLEMENT AGREEMENT OR TO SATISFACTORILY RESPOND TO A FINRA REQUEST TO PROVIDE INFORMATION CONCERNING THE STATUS OF COMPLIANCE.

Other

Suspension

PURSUANT TO ARTICLE VI, SECTION 3 OF FINRA BY-LAWS AND FINRA RULE 9554, JOHN MEAN'S REGISTRATION IS SUSPENDED ON APRIL 23, 2009 FOR FAILURE TO COMPLY WITH AN ARBITRATION AWARD OR SETTLEMENT AGREEMENT OR TO SATISFACTORILY RESPOND TO A FINRA REQUEST TO PROVIDE INFORMATION CONCERNING THE STATUS OF COMPLIANCE.

ALLEDGED POOR PERFORMANCE AND ALLEDGED MISREPRESENTATION

$716,365.58

$856,000.00

MR. MEANS IS LIABLE, JOINTLY AND SEVERALLY, FOR CHURNING, BREACH OF FIDUCIARY DUTY, FRAUDULENT OR NEGLIGENT MISREPRESENTATION, AND PROFESSIONAL NEGLIGENCE AND SHALL PAY TO CLAIMANTS $856,000 PLUS INTEREST.

SUMMARILY ALLEGES UNAUTHORIZED AND/OR UNSUITABLE TRADES, EXCESSIVE STOCK TRADES AND MARGIN USE FROM 7/99 TO 6/01. APPEAR TO ALLEGE LOSSES OF $117K. ARBITRATION FILED ON 06/25/04. ALLEGATIONS: TEN MARYLAND RESIDENTS ALLEGE MISREPRESENTATION, UNSUITABILITY, UNAUTHORIZED INVESTMENTS AND CHURNING IN EACH OF THEIR SEPARATE ACCOUNTS OPENED WITH FUSI BETWEEN 1999 AND 2001. AGGREGATE ALLEGED LOSS OVER ALL THE ACCOUNTS AT ISSUE IS $1.7 MILLION.

$1,700,000.00

$35,000.00