Initiated By
FINRA
Allegations
FINRA'S BY-LAWS ARTICLE V, SECTION 2(C), FINRA RULE 2010, NASD RULES 2110, 2370, AND INTERPRETATIVE MATERIAL-1000-1: DIEHL BORROWED, IN TOTAL, $127,000 FROM HIS CUSTOMER, AND DIEHL DID NOT OBTAIN PRIOR WRITTEN APPROVAL FROM HIS MEMBER FIRM FOR THE LOAN PRIOR TO BORROWING FROM THE CUSTOMER. SPECIFICALLY, DIEHL ENTERED INTO AN AGREEMENT WHEREBY HIS CUSTOMER'S COMPANY WOULD LOAN FUNDS TO DIEHL'S WIFE. THE INTENT OF THE AGREEMENT WAS FOR DIEHL TO INDIRECTLY RECEIVE THE FUNDS IN EXCHANGE FOR TRAINING THE CUSTOMER'S SON IN THE SECURITIES INDUSTRY. DIEHL'S FIRM ALLOWED LOANS FROM CUSTOMERS TO REGISTERED REPRESENTATIVES UNDER CERTAIN CIRCUMSTANCES, BUT REQUIRED THAT THE REPRESENTATIVE OBTAIN WRITTEN APPROVAL FROM THE FIRM PRIOR TO BORROWING. DIEHL FAILED TO TIMELY AMEND HIS FORM U4 TO DISCLOSE A TAX LIEN FILED, RELATED TO INCOME TAXES OWED BY DIEHL, AFTER FIRST LEARNING OF THE LIEN.
Resolution
Acceptance, Waiver & Consent(AWC)
Sanctions
Civil and Administrative Penalty(ies)/Fine(s)
Amount
$7,500.00
Sanctions
Suspension
Registration Capacities Affected
ALL CAPACITIES
Duration
FOUR MONTHS
Start Date
12/17/2012
End Date
4/16/2013
Regulator Statement
WITHOUT ADMITTING OR DENYING THE FINDINGS, DIEHL CONSENTED TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS; THEREFORE, HE IS FINED $7,500 AND SUSPENDED FROM ASSOCIATION WITH ANY FINRA MEMBER IN ALL CAPACITIES FOR FOUR MONTHS. THE FINE IS DUE AND PAYABLE EITHER IMMEDIATELY UPON RE-ASSOCIATION WITH A MEMBER FIRM FOLLOWING HIS/HER SUSPENSION 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 IS IN EFFECT FROM DECEMBER 17, 2012, THROUGH APRIL 16, 2013.