FINRA

NASD RULE 2110, NASD INTERPRETATIVE MATERIAL 1000-1 - RICHARD A. NEATON WILLFULLY FAILED TO DISCLOSE MATERIAL INFORMATION ON HIS FORM U4.

Decision

Bar (Permanent)

All Capacities

Indefinite

1/7/2011

HEARING PANEL DECISION RENDERED JUNE 5, 2009 WHEREIN NEATON IS FINED $5,000, SUSPENDED FROM ASSOCIATION WITH ANY FINRA MEMBER IN ANY CAPACITY FOR ONE YEAR AND ASSESSED COSTS OF $1,861.30. THE FINE AND COSTS ARE DUE AND PAYABLE WHEN NEATON RETURNS TO THE INDUSTRY. THE DECISION INCLUDES A FINDING THAT NEATON WILLFULLY FAILED TO DISCLOSE MATERIAL INFORMATION ON A FORM U4 AND THAT UNDER SECTION 15(B) OF THE SECURITIES EXCHANGE ACT OF 1934 AND ARTICLE III, SECTION 4 OF THE FINRA BY-LAWS, THIS OMISSION MAKES HIM SUBJECT TO A STATUTORY DISQUALIFICATION WITH RESPECT TO ASSOCIATION WITH A MEMBER. NAC DECISION RENDERED JANUARY 7, 2011 WHEREIN THE FINDINGS ARE AFFIRMED AND THE SANCTIONS MODIFIED; THEREFORE, NEATON IS BARRED FROM ASSOCIATION WITH ANY FINRA MEMBER IN ANY CAPACITY, ORDERED TO PAY HEARING COSTS OF $1,861.30 AND APPEAL COSTS OF $1,342.95. THE NAC ALSO AFFIRMED THE HEARING PANEL'S CONCLUSION THAT NEATON IS SUBJECT TO A STATUTORY DISQUALIFICATION. SEC DECISION RENDERED OCTOBER 20, 2011 WHEREIN THE FINDINGS MADE ARE HELD AND THE SANCTIONS ENTERED IMPOSED BY THE NAC ARE SUSTAINED, THEREFORE, NEATON IS FINED $5,000 AND BARRED FROM ASSOCIATION WITH ANY FINRA MEMBER IN ANY CAPACITY. IN ADDITION, NEATON WAS ORDERED TO PAY HEARING COSTS OF $1,861.30 AND APPEAL COSTS OF $1,342.95. SEC ORDER DENYING MOTION FOR RECONSIDERATION DECEMBER 1, 2011: ON OCTOBER 31, 2011, NEATON FILED A MOTION FOR RECONSIDERATION OF THE OPINION. IT IS ORDERED THAT NEATON'S OCTOBER 31, 2011 MOTION FOR RECONSIDERATION BE, AND IT HEREBY IS, DENIED. THE OPINION STATES THAT FINRA FINED NEATON $5,000 AND BARRED HIM. UPON FURTHER REVIEW OF THE RECORD, THE SEC CONCLUDES THAT WHILE THE HEARING PANEL IMPOSED A $5,000 FINE ON NEATON, THE NAC DID NOT. AS WE HAVE HELD, IT IS "THE DECISION OF THE NAC, NOT THE DECISION OF THE HEARING PANEL THAT IS THE FINAL ACTION OF FINRA WHICH IS SUBJECT TO COMMISSION REVIEW." FOR THE REASONS STATED IN THE OPINION, THE SEC FINDING THAT A BAR IS NEITHER EXCESSIVE NOR OPPRESSIVE AND WILL ADEQUATELY SERVE THE PUBLIC INTEREST AND PROTECT INVESTORS REMAINS UNCHANGED IN LIGHT OF NEATON'S VIOLATIVE CONDUCT. THEREFORE, NEATON IS BARRED FROM ASSOCIATION WITH ANY FINRA MEMBER IN ANY CAPACITY FOR VIOLATING NASD RULE 2110, NASD INTERPRETATIVE MATERIAL 1000-1, ORDERED TO PAY HEARING COSTS OF $1,861.30 AND APPEAL COSTS OF $1,342.95. NEATON WILLFULLY SUBMITTED UNIFORM APPLICATIONS FOR SECURITIES INDUSTRY REGISTRATION OR TRANSFER (FORMS U4) THAT DID NOT DISCLOSE, AND WILLFULLY FAILED TO UPDATE FORMS U4 TO DISCLOSE, DISCIPLINARY ACTIONS AND SANCTIONS IMPOSED ON HIM BY A STATE BAR DISCIPLINARY BOARD. NEATON IS ALSO SUBJECT TO A STATUTORY DISQUALIFICATION. THE DECISION BECAME FINAL JANUARY 30, 2012.