FINRA

Without admitting or denying the findings, Wertz consented to the sanction and to the entry of findings that he created false account statements for a customer in connection with securing a bank loan for $1.872 million. The findings stated that Wertz created a false account statement for the customer by changing the name, address and account number on another customer's statement that showed the account holding more than $3 million in securities. Wertz gave the false account statement to the bank's loan officer. Because the bank required copies of account statements each month, he created a false account statement for the customer every month. Wertz gave some of the false statements to the customer, knowing that the customer would provide them to the bank, and gave others directly to the bank. Wertz knew the account statements contained false values and that they would be submitted to the bank to obtain and maintain the loan. Wertz received $50,000 from the customer and the customer's brother in payment for his actions. The customer's entity subsequently borrowed additional money from the bank and was extended a line of credit based in part on the false account statements. The customer's entity ultimately defaulted on its loans from the bank, resulting in a loss to the bank of more than $3.2 million.

Acceptance, Waiver & Consent(AWC)

Bar (Permanent)

All Capacities

Indefinite

9/11/2019

First Financial Equity Corporation

Discharged

Failure to disclose relationship with unaffiliated investment advisor.

Mistakenly failed to notify manager of employment with unaffiliated RIA, in writing.

CUSTOMER ALLEGES THAT WRAP FEES WERE IMROPERLY CHARGED TO AN ACCOUNT WITH LITTLE OR NO ACTIVITY.

$16,043.00

$8,021.89

CLIENT STATED THAT THE REP RECOMMENDED SECURITIES THAT THE CLIENT LATER FOUND TO BE JUNK BONDS. CLIENT CLAIMED POSITIONS WERE INAPPROPRIATE FOR AGE, STYLE AND KNOWLEDGE OF INVESTING. CLIENT STATED REP WAS LACKADASICAL AND INEFFECTIVE IN MONITORING OR ADVISING ON THE RISKS AND NEVER ADVISED TO SELL.

$35,000.00

THE NEW ACCOUNT APPLICATION THAT THE CLIENT COMPLETED SHOWED THAT HE HAD OVER 20 YEARS EXPERIENCE WITH STOCKS, BONDS, OPTIONS, COMMODITIES AND FUTURES. THE FIRM FOUND THAT THE REP MADE AN ALTERNATIVE SUGGESTION TO CLIENT SINCE HE ORIGINALLY WANTED INFOR REGARDING AA BONDS HOPING TO PURCHASE AT A DISCOUNT. THE CLIENT IS A PILOT BY PROFESSION THRU AA AND WAS AWARE OF THE FINANCIAL STATUS OF COMPANY AND WAS HOPEFUL TO BUY POSITION AT A DISCOUNT. THE REP ADVISED CLIENT NOT TO PURCHASE THE AA BONDS BUT OFFERED SOLUTION WITH THE GM AND F BONDS. THE REP DID IN FACT ADVISE CLIENT TO SELL THE GM BONDS ON APRIL 13, 2009 BUT THE CLIENT ELECTED TO HOLD POSITIONS AND CONTINUE TO RECEIVE INCOME. THE F BONDS HAVE BEEN VERY PROFITABLE. THERE WAS CONSTANT COMMUNICATION WITH THE REP AND CLIENT THROUGH EMAIL. THE CLIENT WAS VERY COMPLIMENTARY OF THE REP AND APPRECIATED THE SERVICE HE WAS RECEIVING. THE FIRM DENIED CLIAM. THIS MATTER HAS BEEN CLOSED.