FINRA

Without admitting or denying the findings, Williams consented to the sanction and to the entry of findings that he participated in at least 125 private securities transactions with another registered representative without providing written notice of the transactions to his member firm or receiving the firm's approval. The findings stated that approximately $13.5 million of the transactions were by firm customers. Williams' participation in the transactions included responding to customer requests related to investments in a company, authorizing wire transfers of funds from customer accounts at the firm to the company, and manually adding customers' outside company holdings to consolidated statements that were sent to the customers. The company paid Williams approximately three percent of the assets he and the former registered representative sold to customers, half of which Williams remitted to the former registered representative, with proceeds to Williams totaling approximately $94,000. In early 2012, the company stopped paying dividends and its shares are currently worthless. The findings also stated that Williams willfully failed to disclose unsatisfied tax liens on his form u4. In addition, Williams submitted annual compliance questionnaires to the firm that contained false answers regarding his knowledge of the liens.

Acceptance, Waiver & Consent(AWC)

Bar (Permanent)

All Capacities

Indefinite

8/13/2015

THIS SETTLEMENT INCLUDES A FINDING THAT WILLIAMS WILLFULLY OMITTED TO STATE A MATERIAL FACT ON A FORM U4, AND THAT UNDER SECTION 3(A)(39)(F) OF THE SECURITIES EXCHANGE ACT OF 1934 AND ARTICLE III, SECTION 4 OF FINRA'S BY-LAWS, THIS OMISSION MAKES HIM SUBJECT TO A STATUTORY DISQUALIFICATION WITH RESPECT TO ASSOCIATION WITH A MEMBER.

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

SEC ADMIN RELEASE 34-75961/IA RELEASE 4171/INVESTMENT COMPANY ACT RELEASE 31752/AUGUST 13, 2015: THE SECURITIES AND EXCHANGE COMMISSION (COMMISSION) DEEMS IT APPROPRIATE AND IN THE PUBLIC INTEREST THAT PUBLIC ADMINISTRATIVE AND CEASE-AND-DESIST PROCEEDINGS BE, AND HEREBY ARE, INSTITUTED PURSUANT TO SECTION 15(B) OF THE SECURITIES EXCHANGE ACT OF 1934 (EXCHANGE ACT), SECTIONS 203(F) AND 203(K) OF THE INVESTMENT ADVISERS ACT OF 1940 (ADVISERS ACT), AND SECTION 9(B) OF THE INVESTMENT COMPANY ACT OF 1940 (INVESTMENT COMPANY ACT) AGAINST CORY D. WILLIAMS. THIS MATTER CONCERNS THE INVOLVEMENT OF WILLIAMS, A FORMER REGISTERED REPRESENTATIVE AND INVESTMENT ADVISER REPRESENTATIVE AT A DUALLY REGISTERED INVESTMENT ADVISER AND BROKER-DEALER, IN A FRAUDULENT OFFERING SCHEME AND INVESTMENT ADVISORY FRAUD PRINCIPALLY ORCHESTRATED BY HIS PARTNER, ALSO A FORMER REGISTERED REPRESENTATIVE AND INVESTMENT ADVISER REPRESENTATIVE. WILLIAMS ASSISTED HIS PARTNER IN MANAGING FIRM ADVISORY CLIENT PORTFOLIOS, INCLUDING THOSE CLIENTS WHO INVESTED IN A SECURITY NOT APPROVED FOR SALE BY THEIR FIRM. WHILE HE LACKED SUFFICIENT INFORMATION TO KNOW THAT HIS PARTNER'S STATEMENTS TO INVESTORS WERE FALSE, WILLIAMS DID ACCEPT UNDISCLOSED FEES FROM THE SECURITY. AS AN INVESTMENT ADVISER, WILLIAMS HAD A FIDUCIARY DUTY TO DISCLOSE MATERIAL CONFLICTS OF INTEREST TO HIS CLIENTS AND TO ACT IN THEIR BEST INTERESTS. WILLIAMS BREACHED THIS DUTY BY ACCEPTING QUARTERLY COMMISSION PAYMENTS FROM THE SECURITY THAT WERE NOT DISCLOSED TO THE FIRM'S ADVISORY CLIENTS HE SERVICED. THESE PAYMENTS, WHICH CAME FROM MONIES INVESTED BY HIS ADVISORY CLIENTS IN THE SECURITY, DISADVANTAGED WILLIAMS' CLIENTS WHILE BENEFITING WILLIAMS. FURTHER, WILLIAMS KNEW THAT A SUBSTANTIAL NUMBER OF HIS ADVISORY CLIENTS WERE INVESTING IN THE SECURITY, BUT HE KNEW VIRTUALLY NOTHING ABOUT THIS UNREGISTERED OFFERING, EXCEPT THAT IT WAS NOT AN INVESTMENT SANCTIONED OR APPROVED BY HIS FIRM. WHEN CLIENTS COMPLAINED TO WILLIAMS REGARDING PROBLEMS WITH THEIR INVESTMENTS IN THE SECURITY, HE IGNORED THESE RED FLAGS, CONTINUED TO ACT AS THEIR INVESTMENT ADVISER, AND CONTINUED TO RECEIVE PAYMENTS FROM THE SECURITY. BASED ON THESE ACTIONS, WILLIAMS WILLFULLY VIOLATED SECTIONS 206(1) AND 206(2) OF THE ADVISERS ACT.

Order

Bar (Permanent)

SEE COMMENTS

Indefinite

8/13/2015

PARTICIPATING IN ANY OFFERING OF A PENNY STOCK

Indefinite

8/13/2015

Cease and Desist

Civil and Administrative Penalty(ies)/Fine(s)

$94,191.00

Disgorgement

$94,191.00

Monetary Penalty other than Fines

$9,854.00

Prohibition