FINRA

Without admitting or denying the findings, Hajek consented to the sanctions and to the entry of findings that he conducted a certified public accountancy (CPA) business as an approved outside business activity (OBA), and exceeded the scope of his member firms' approval to conduct his CPA business by assisting customers open and administer self-directed IRAs away from the firms and by recommending and facilitating customers' investments in those accounts, some of which included securities. The findings stated that Hajek's firms' customers transferred a total of nearly $1.8 million in cash and assets from their firm accounts to their self-directed IRA accounts. Hajek continued to engage in this business even after his firm directed him to cease. Additionally, Hajek was involved in other OBAs that he was obligated to disclose to his firms in writing, as required by WSPs, and he failed to do so. Hajek also failed to properly disclose his involvement with OBAs to a firm upon association with the firm. The findings also stated that Hajek participated in private securities transactions effected in customers' self-directed IRAs totaling more than $2.3 million that were done away from his firms, as such, Hajek was required to notify his firms in writing of his participation in them prior to participating in them and he failed to do so.

Acceptance, Waiver & Consent(AWC)

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

$35,000.00

Suspension

All Capacities

18 months

2/1/2016

7/31/2017

Without admitting or denying the findings, Hajek consented to the sanctions and to the entry of findings that he conducted a certified public accountancy (CPA) business as an approved outside business activity (OBA), and exceeded the scope of his member firms' approval. Hajek's primary professional occupation and affiliation is a CPA business which commenced in May 1995 and continues to the present date. Upon affiliation with the member firm in November 2003, Hajek communicated his involvement with the CPA firm both verbally and in writing through OBA disclosure in accordance with the firm's procedures. In completing the OBA, Hajek relied on the member firm's compliance for guidance and instruction on completing the OBA. Hajek's firm completed Branch Office Inspections by third party examiner's in December 2005, November 2007, November 2008 and December 2011 with no material deficiencies. Prior to affiliation with a member firm in June 2013, Hajek verbally communicated with said firm all activities and in writing via OBA upon affiliation. Hajek continued to communicate with the member firm to insure full disclosure through February 2014 at which time all associated persons resigned their affiliation with the member firm. Hajek consulted customers related to Self-Directed IRA's as dictated under his role as CPA. Some customers of the firm utilized Self-Directed IRA's to facilitate the purchase of LLC entities, of which membership interest was held by the IRA and management was held by the IRA owner. Hajek had no interest or management authority in said entities.