FINRA

NASD RULES 2110, 2510(B): JIMENEZ EFFECTED NUMEROUS DISCRETIONARY TRANSACTIONS IN THE SECURITIES ACCOUNT OF A CUSTOMER WITHOUT OBTAINING PRIOR WRITTEN AUTHORIZATION FROM THE CUSTOMER AND WITHOUT HIS MEMBER FIRM HAVING ACCEPTED THE ACCOUNT IN WRITING AS DISCRETIONARY.

Acceptance, Waiver & Consent(AWC)

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

$14,432.00

Suspension

ANY CAPACITY

TWO MONTHS

2/6/2012

4/5/2012

WITHOUT ADMITTING OR DENYING THE FINDINGS, JIMENEZ CONSENTED TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS; THEREFORE, HE IS FINED $14,432, WHICH INCLUDES DISGORGEMENT OF $6,932 OF COMMISSIONS RECEIVED, AND SUSPENDED FROM ASSOCIATION WITH ANY FINRA MEMBER IN ANY CAPACITY FOR TWO MONTHS. THE FINE IS DUE AND PAYABLE EITHER IMMEDIATELY UPON RE-ASSOCIATION WITH A MEMBER FIRM FOLLOWING HIS SUSPENSION OR PRIOR TO ANY 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 FEBRUARY 6, 2012 THROUGH APRIL 5, 2012.

NEGLIGENCE,BREACH OF FIDUCIARY DUTY, CHURNING,BREACH OF CONTRACT, UNSUITABLE TRADING

$547,443.87

$115,306.39

RESPONDENT IS JOINTLY AND SEVERALLY LIABLE FOR AND SHALL PAY TO CLAIMANT COMPENSATORY DAMAGES IN THE AMOUNT OF $81,000.00 AND INTEREST ON THE AWARD AT THE LEGAL RATE OF 10% PER ANNUM ACCRUING FROM APRIL 1, 2008 THROUGH THE DATE OF THE AWARD. -ON JULY 21,2011 A CHECK WAS MAILED TO THE CLIENT IN THE AMOUNT OF $115,306.39. THESE SUMS REPRESENT FULL AND FINAL SATISFACTION OF THE AWARD WHICH 50% WILL BE PAID BY THE REPRESENTATIVE.

CLIENT CLAIMS BROKER MISCONDUCT IN THE FORM OF MISREPRESENTATION AND OMISSIONS, UNSUITABILITY, OVERCONCENTRATION, CHURNING, FAILURE TO EXECUTE TRADES, UNAUTHORIZED TRADING, BREACH OF PROMISE CONTRACT, BREACH OF FIDUCIARY DUTY, NEGLIGENCE, AND MARGIN ACCOUNT ABUSE ON AN ONGOING BASIS. NO SPECIFIC DATES LISTED IN COMPLAINT.

$1,096,000.00

$250,000.00

MR. JIMENEZ WAS NOT NAMED PARTY ON THE ARBITRATION FILING. CUSTOMER PUT OUT A FRIVOLOUS COOKIE CUTTER COMPLAINT TO GET WEDBUSH'S ATTENTION. NEVER WENT TO ARBITRATION. WEDBUSH SETTLED FOR A FRACTION OF ASKED AMOUNT IN ORDER TO AVOID HIGH COURT COST.

WEDBUSH MORGAN SECURITIES

Discharged

BROKER WAS UNDER HEIGHTENED SUPERVISION REQUIREMENTS DUE TO A CLIENT WRITTEN COMPLAINT. HE FAILED TO FOLLOW SOME OF THE TERMS AND CONDITIONS OF THAT STATUS WITH NO REASONABLE EXPLANATION.

[CUSTOMER] ALLEGED THAT MR. JIMENEZ MADE UNSUITABLE RECOMMENDATIONS.

$270,000.00

$75,000.00

THIS ACCOUNT WAS FIRST MANAGED BY A SENIOR PARTNER AT WEDBUSH AND THEN PASSED ON TO MR. JIMENEZ AT A SUBSTANTIAL LOSS DURING THE HEIGHTH OF THE TECH BUBBLE TURMOIL. AFTER THE REP AND SENIOR PARTNERS PARTNERSHIP DISSOLVED DUE TO MARKET CONDITIONS. CLIENT BECAME FEARFUL AND WANTED TO SELL ENTIRE PORTFOLIO. HE TOOK A LOSS IN HIS INVESTMENT. REP AND WEDBUSH SPLIT SETTLEMENT 50/50.