UNITED STATES SECURITIES AND EXCHANGE COMMISSION

SEC Admin Release, 34-83652, IA Release 40-4971 / July 17, 2018: The Securities and Exchange Commission ("Commission") deems it appropriate and in the public interest that public administrative proceedings be instituted against James M. Unger ("Unger" or "Respondent"). On the basis of this Order and Respondent's Offer, the Commission finds that on March 26, 2018, Unger pled guilty to two counts of wire fraud and five counts of filing false tax returns in a criminal action 18-cr-48 (N.D. Oh.). For: (1) his misappropriation of $267,664.31 from a broker-dealer customer between 2010 and 2014; and (2) his failure to report certain income on his Federal income tax returns.

Order

Bar (Permanent)

any broker, dealer, investment adviser, municipal securities dealer, municipal advisor, transfer agent, or NRSRO

Indefinite

7/17/2018

from participating in any offering of a penny stock

Indefinite

7/17/2018

filing false tax returns

Pled guilty

wire fraud

Pled guilty

FINRA

WITHOUT ADMITTING OR DENYING THE FINDINGS, UNGER CONSENTED TO THE SANCTION AND TO THE ENTRY OF FINDINGS THAT HE BORROWED AT LEAST $219,000 FROM A CUSTOMER WITHOUT HIS MEMBER FIRM'S APPROVAL. THE FINDINGS STATED THAT ON MULTIPLE OCCASIONS, UNGER MADE FALSE STATEMENTS AND ATTESTATIONS TO HIS MEMBER FIRMS ON ANNUAL COMPLIANCE QUESTIONNAIRES CONCERNING HIS BORROWING OF MONEY FROM THE CUSTOMER. THE FINDINGS ALSO STATED THAT UNGER CREATED AND USED BLANK, PRE-SIGNED FORMS FOR THE PURPOSE OF MAKING ONGOING DISTRIBUTIONS FROM THE ACCOUNTS OF TWO CUSTOMERS. THE TWO CUSTOMERS HAD REQUESTED THAT UNGER CREATE A BLANK TEMPLATE FOR THEM SO THEY COULD CONVENIENTLY RECEIVE DISTRIBUTIONS WITHOUT GENERATING NEW PAPERWORK. THE FINDINGS ALSO INCLUDED THAT UNGER WILLFULLY FAILED TO DISCLOSE OR TIMELY DISCLOSE ELEVEN TAX LIENS ON HIS FORM U4.

Acceptance, Waiver & Consent(AWC)

Bar (Permanent)

All Capacities

9/30/2014

UNGER UNDERSTANDS THAT THIS SETTLEMENT INCLUDES A FINDING THAT HE WILLFULLY OMITTED TO STATE A MATERIAL FACT ON A FORM U4, AND THAT UNDER SECTION 3(A)(39)(F) OF THE SECURITIES EXCHANGE ACT OF 1934 AND ARTICLE III, SECTION 4 OF FINRA'S BY-LAWS, THIS OMISSION MAKES HIM SUBJECT TO A STATUTORY DISQUALIFICATION WITH RESPECT TO ASSOCIATION WITH A MEMBER.