FINRA

RESPONDENT ALVEY FAILED TO COMPLY WITH AN ARBITRATION AWARD OR SETTLEMENT AGREEMENT OR TO SATISFACTORILY RESPOND TO A FINRA REQUEST TO PROVIDE INFORMATION CONCERNING THE STATUS OF COMPLIANCE.

LETTER

Suspension

ANY CAPACITY

N/A

6/18/2013

PURSUANT TO ARTICLE VI, SECTION 3 OF FINRA BY-LAWS, AND FINRA RULE 9554, RESPONDENT ALVEY IS SUSPENDED JUNE 18, 2013 FOR FAILURE TO COMPLY WITH AN ARBITRATION AWARD OR SETTLEMENT AGREEMENT OR TO SATISFACTORILY RESPOND TO A FINRA REQUEST TO PROVIDE INFORMATION CONCERNING THE STATUS OF COMPLIANCE.

Negligence; Breach of Fiduciary Duty; Misrepresentations; Omission Effects; and Suitability

$73,833.12

$57,960.00

The Award has not been paid.

UTAH DIVISION OF SECURITIES

THE DIVISION ALLEGES THAT: (1) ALVEY COMMITTED SECURITIES FRAUD UNDER SECTION 61-1-1(2) OF THE UTAH UNIFORM SECURITIES ACT ("ACT") BY MAKING MISREPRESENTATIONS OR OMITTING MATERIAL FACTS NECESSARY IN ORDER TO MAKE THE STATEMENTS MADE NO MISLEADING IN CONNECTION WITH THE OFFER OR SALE OF SECURITIES; (2) ALVEY COMMITTED SECURITIES FRAUD UNDER SECTION 61-1-1(3) OF THE ACT BY ENGAGING IN ACTS PRACTICES OR A COURSE OF BUSINESS WHICH OPERATED AS A FRAUD; (3) ALVEY VIOLATED SECTION 61-1-3 OF THE ACT BY ACTING AS AN UNLICENSED AGENT INSOFAR AS HE CONDUCTED SECURITIES TRANSACTIONS THROUGH AND WAS PAID COMPENSATION BY DESERET FINANCIAL; AND (4) ALVEY MADE FALSE STATEMENTS TO THE DIVISION IN VIOLATION OF SECTION 61-1-16 OF THE ACT BY FILING A FALSE AND MISLEADING FORM U-4 THAT FAILED TO DISCLOSE HIS OUTSIDE ACTIVITIES WITH DESERET FINANCIAL.

Stipulation and Consent

Cease and Desist

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

$75,000.00

ALVEY SHALL NOT SEEK LICENSURE OR APPLY TO BE LICENSED BY THE UTAH SECURITIES DIVISION AS A BROKER-DEALER AGENT OR INVESTMENT ADVISER, NOR LICENSING AS AN AGENT FOR ANY ISSUER SOLICITING INVESTOR FUNDS, NOR LICENSING IN ANY OTHER CAPACITY IN THE SECURITIES INDUSTRY IN THE STATE OF UTAH AT ANY TIME IN THE FUTURE. ALVEY SHALL PROVIDE TRUTHFUL TESTIMONY AND COOPERATION WITH ANY STATE OR FEDERAL INVESTIGATIONS REGARDING THE PARTIES NAMED IN THE ORDER.

BREACH OF FIDUCIARY DUTY; FRAUDULENT CONCEALMENT/NONDISCLOSURE; FRAUD; NEGLIGENT MISREPRESENTATION; AND UNJUST ENRICHMENT.

$1,000,000.00

PANEL FINDS: ALVEY IS LIABLE FOR BREACH OF FIDUCIARY DUTY AND SUITABILITY.