Initiated By
FINRA
Allegations
NASD RULES 2110, 3040: RHODES FAILED TO PROVIDE PRIOR WRITTEN NOTICE TO HIS MEMBER FIRM THAT HE ENTERED INTO PRIVATE SECURITIES TRANSACTIONS. RHODES, THROUGH AN ENTITY, ENTERED INTO PROMISSORY NOTES IN WHICH RHODES, THROUGH THE ENTITY, BORROWED FUNDS FROM CUSTOMERS. THE FIRM PREVIOUSLY PROHIBITED RHODES FROM PARTICIPATING IN ANY TRANSACTIONS TO RAISE CAPITAL OR SOLICIT INVESTORS.
Resolution
Acceptance, Waiver & Consent(AWC)
Sanctions
Civil and Administrative Penalty(ies)/Fine(s)
Amount
$5,000.00
Sanctions
Suspension
Registration Capacities Affected
ANY CAPACITY
Duration
30 DAYS
Start Date
7/1/2013
End Date
7/30/2013
Regulator Statement
WITHOUT ADMITTING OR DENYING THE FINDINGS, RHODES CONSENTED TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS; THEREFORE HE IS FINED $5,000 AND SUSPENDED FROM ASSOCIATION WITH ANY FINRA MEMBER IN ANY CAPACITY FOR 30 DAYS. THE SUSPENSION IS IN EFFECT JULY 1, 2013 THROUGH JULY 30, 2013. FINE PAID IN FULL ON JULY 1, 2013.
Broker Comment
WITHOUT ADMITTING OR DENYING THE FINDINGS, RHODES CONSENTED TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS; THEREFORE HE IS FINED $5,000 AND SUSPENDED FROM ASSOCIATION WITH ANY FINRA MEMBER IN ANY CAPACITY FOR 30 DAYS. THE SUSPENSION IS IN EFFECT JULY 1, 2013 THROUGH JULY 30, 2013.