Initiated By
FINRA
Allegations
FINRA RULE 2010, NASD RULE 1017: THE MEMBER FIRM, ACTING THROUGH AGUILAR, ITS PRESIDENT, FAILED TO FILE AN APPLICATION FOR APPROVAL OF THE CHANGE OF OWNERSHIP WITH FINRA AT LEAST 30 DAYS PRIOR TO A CHANGE IN OWNERSHIP IN WHICH A THIRD PARTY ENTITY BECOME A 25% INDIRECT EQUITY OWNER OF THE FIRM. ON OR ABOUT SEPTEMBER 10, 2009, A THIRD PARTY ENTITY PURCHASED 20% OF THE EQUITY OF THE FIRM FOR A TOTAL OF $1,000,000. BASED ON THE ACQUISITION OF 20% OF THE EQUITY OF THE FIRM, THE ENTITY BECAME A 20% INDIRECT EQUITY OWNER OF THE FIRM. ON OR ABOUT JANUARY 27, 2010, THE ENTITY PURCHASED AN ADDITIONAL 5% OF THE EQUITY OF THE FIRM FOR A TOTAL OF $250,000. THE ENTITY'S PURCHASE OF AN ADDITIONAL 5% OF THE EQUITY OF THE FIRM CAUSED IT TO BECOME A 25% OWNER OF THE FIRM, AND THEREBY, A 25% INDIRECT EQUITY OWNER OF THE FIRM.
Resolution
Acceptance, Waiver & Consent(AWC)
Sanctions
Civil and Administrative Penalty(ies)/Fine(s)
Amount
$15,000.00
Sanctions
Suspension
Registration Capacities Affected
ANY PRINCIPAY CAPACITY
Duration
TWO MONTHS
Start Date
12/5/2011
End Date
2/4/2012
Regulator Statement
WITHOUT ADMITTING OR DENYING THE FINDINGS, AGUILAR CONSENTED TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS; THEREFORE, HE IS FINED $15,000, JOINTLY AND SEVERALLY, AND SUSPENDED FROM ASSOCIATION WITH ANY FINRA MEMBER IN ANY PRINCIPAL CAPACITY FOR TWO MONTHS. THE SUSPENSION IS IN EFFECT FROM DECEMBER 5, 2011, THROUGH FEBRUARY 4, 2012.
Broker Comment
TRICOR, ACTING THROUGH AGUILAR, FAILED TO FILE WITH FINRA AN APPLICATION FOR APPROVAL OF A CHANGE IN EQUITY OWNERSHIP AT LEAST 30 DAYS PRIOR TO A 25% CHANGE IN THE INDIRECT OWNERSHIP EQUITY OF THE FIRM.