FINRA

FINRA RULES 2010, 8210, NASD RULES 2110, 2370: WHILE ASSOCIATED WITH HIS MEMBER FIRM, RESPONDENT PITTMAN BORROWED $30,000.00 FROM ONE OF HIS CUSTOMERS AT THE FIRM. AT THE TIME THE CUSTOMER LOANED THE MONEY TO PITTMAN, THE FIRM HAD A WRITTEN POLICY THAT PROHIBITED INDIVIDUALS FROM BORROWING MONEY FROM FIRM CUSTOMERS WITH NO EXCEPTIONS. PITTMAN DID NOT SEEK OR RECEIVE APPROVAL FROM THE FIRM FOR THE LOAN RECEIVED FROM THE CUSTOMER. TO DATE, PITTMAN HAS NOT REPAID THE $30,000.00 LOAN. PITTMAN FAILED TO APPEAR AND PROVIDE TESTIMONY FOR FINRA ON-THE-RECORD INTERVIEWS REGARDING PITTMAN'S SALE OF A COMPANY'S NOTES.

Decision

Bar (Permanent)

All Capacities

2/15/2012

HEARING PANEL DECISION RENDERED NOVEMBER 4, 2011 WHEREIN PITTMAN WAS ORDERED TO PAY AN ADMINISTRATIVE FEE OF $750, ORDERED TO PAY RESTITUTION IN THE AMOUNT OF $30,000, PLUS INTEREST ON THE UNPAID PRINCIPAL BALANCE TO THE CUSTOMER, AND BARRED FROM ASSOCIATION WITH ANY FINRA MEMBER IN ANY CAPACITY FOR FAILING TO APPEAR AND TESTIFY AT TWO SCHEDULED ON-THE-RECORD INTERVIEWS. THE COSTS SHALL BE DUE ON A DATE SET BY FINRA, BUT NOT SOONER THAN 30 DAYS AFTER THE DECISION BECOMES FINAL. AMENDED HEARING PANEL DECISION RENDERED DECEMBER 29, 2011 WHEREIN PITTMAN WAS BARRED FROM ASSOCIATION WITH ANY FINRA MEMBER IN ANY CAPACITY FOR FAILING TO APPEAR AND TESTIFY AT TWO SCHEDULED ON-THE-RECORD INTERVIEWS AND BORROWING MONEY FROM CUSTOMER WITHOUT HIS MEMBER FIRM'S APPROVAL IN VIOLATION OF FINRA RULES 2010, 8210, NASD RULES 2110, 2370. PITTMAN FAILED TO APPEAR AND TESTIFY AT TWO FINRA SCHEDULED ON-THE-RECORD INTERVIEWS. PITTMAN ADMITTED THAT HE BORROWED $30,000 FROM HIS CUSTOMER, TO PAY PERSONAL EXPENSES, WITHOUT HIS MEMBER FIRM'S APPROVAL. THE FIRM'S WRITTEN POLICIES AND PROCEDURES STRICTLY PROHIBITED REGISTERED REPRESENTATIVES FROM BORROWING MONEY FROM ANY OF THE FIRM'S CUSTOMERS. PITTMAN ADMITTED IN HIS RESPONSE TO FINRA THAT HE WAS AWARE OF HIS FIRM'S POLICIES AND PROCEDURES PROHIBITING LOANS BETWEEN CUSTOMERS AND THE REPRESENTATIVES. THE LOAN WAS EVIDENCED BY HANDWRITTEN NOTES THAT PITTMAN SIGNED. THE EVIDENCE SHOWS THAT HE MADE INTEREST PAYMENTS OF $250 TWICE. PITTMAN MADE NO OTHER PAYMENTS. PITTMAN ADMITTED THAT HE DID NOT TELL ANYONE AT THE FIRM ABOUT THE LOAN AND DID NOT RECEIVE THE FIRM'S APPROVAL TO BORROW MONEY FROM THE CUSTOMER. THE FIRM LEARNED OF THE LOAN WHEN THE CUSTOMER FILED THE ARBITRATION CLAIM, WHICH NAMED IT AS A RESPONDENT. AFTER THE HEARING PANEL DECISION IN THIS CASE WAS ISSUED, PITTMAN ADVISED THE OFFICE OF HEARING OFFICERS THAT HE HAD FILED A PETITION IN BANKRUPTCY IN THE UNITED STATES BANKRUPTCY COURT. FINRA AND THE CUSTOMER WERE LISTED AS CREDITORS. THE BANKRUPTCY COURT GRANTED PITTMAN A DISCHARGE UNDER SECTION 727 OF TITLE 11, UNITED STATES CODE (THE BANKRUPTCY CODE). IN LIGHT OF PITTMAN'S FINANCIAL STATUS, NO MONETARY SANCTIONS HAVE BEEN IMPOSED. ACCORDINGLY, THIS AMENDED DECISION IS ISSUED TO ELIMINATE THE AWARD OF RESTITUTION TO THE CUSTOMER AND THE ASSESSMENT OF COSTS AGAINST PITTMAN. THE AMENDED DECISION BECAME FINAL FEBRUARY 15, 2012.