Initiated By
FINRA
Allegations
NASD RULE 2110: RESPONDENT JOHN C. NORI DENIED TO NYSE REGULATION EXAMINERS THAT THE BRANCH OFFICE HE SUPERVISED EMPLOYED NON-REGISTERED COLD-CALLERS AND THAT THEY USED TELEMARKETING SCRIPTS WHEN, IN FACT, THERE WERE INTERNS AT THE BRANCH OFFICE WHO WERE ENGAGED IN THOSE ACTIVITIES. IN AN ATTEMPT TO OBFUSCATE THE FACTS AND MISLEAD THE EXAMINERS, NORI INSTRUCTED HIS STAFF AT THE BRANCH OFFICE THAT, IF ASKED, THE EMPLOYEES WERE TO TELL THE EXAMINERS THAT THERE WERE NO APPROVED INTERNS EMPLOYED AT THE BRANCH OFFICE. NORI MISLED THE EXAMINERS TO BELIEVE THAT NO NON-REGISTERED COLD-CALLERS WERE EMPLOYED AT THE BRANCH OFFICE WHEN, IN FACT, THE BRANCH OFFICE EMPLOYED UNAPPROVED INTERNS AS NON-REGISTERED COLD-CALLERS.
Resolution
Acceptance, Waiver & Consent(AWC)
Sanctions
Civil and Administrative Penalty(ies)/Fine(s)
Amount
$5,000.00
Sanctions
Requalification
Sanctions
Suspension
Registration Capacities Affected
ANY CAPACITY
Duration
THREE MONTHS
Start Date
9/8/2009
End Date
12/7/2009
Registration Capacities Affected
SUPERVISORY CAPACITY
Duration
SIX MONTHS
Start Date
9/8/2009
End Date
3/7/2010
Regulator Statement
WITHOUT ADMITTING OR DENYING THE FINDINGS, NORI CONSENTED TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS; THEREFORE, HE IS FINED $5,000, SUSPENDED FROM ASSOCIATION WITH ANY FINRA MEMBER IN ANY CAPACITY FOR THREE MONTHS AND CONCURRENTLY SUSPENDED FROM ASSOCIATION WITH ANY FINRA MEMBER IN ANY SUPERVISORY CAPACITY FOR SIX MONTHS, AND REQUIRED TO REQUALIFY AS A SERIES 9 AND 10 GENERAL SECURITIES SALES SUPERVISOR PRIOR TO BEGINNING ANY SUPERVISORY POSITION FOLLOWING HIS SUSPENSIONS. THE FINE SHALL BE DUE AND PAYABLE EITHER IMMEDIATELY UPON REASSOCIATION WITH A MEMBER FIRM FOLLOWING THE SIX MONTH SUSPENSION NOTED ABOVE, OR PRIOR TO ANY APPLICATION OR REQUEST FOR RELIEF FROM ANY STATUTORY DISQUALIFICATION RESULTING FROM THIS OR ANY OTHER EVENT OR PROCEEDING, WHICHEVER IS EARLIER.
THE SUSPENSION IN ANY CAPACITY IS IN EFFECT FROM SEPTEMBER 8, 2009 THROUGH DECEMBER 7, 2009 AND THE SUSPENSION IN ANY SUPERVISORY CAPACITY IS IN EFFECT FROM SEPTEMBER 8, 2009 THROUGH MARCH 7, 2010.