FINRA

NASD RULES 2110, 2330(A), 8210 - HANSEL C. LEE MISUSED AND APPROPRIATED CUSTOMER FUNDS BY SELLING WITHOUT AUTHORIZATION SECURITIES IN THE CUSTOMER'S BROKERAGE ACCOUNT AND THEN TAKING THE PROCEEDS OF THOSE SALES AND DEPOSITING THEM IN A CHECKING ACCOUNT HE OPENED IN THE CUSTOMER'S NAME WITHOUT THE CUSTOMER'S CONSENT OR KNOWLEDGE. LEE THEN REQUESTED A $500,000 CHECK BE DRAWN ON THE ACCOUNT, PAYABLE TO A COMPANY UNDER HIS CONTROL AND OWNERSHIP. WHEN THE CHECK COULD NOT BE PROCESSED, LEE REQUESTED OTHER CHECKS BE DRAWN ON THE ACCOUNT PAYABLE TO ANOTHER COMPANY UNDER LEE'S OWNERSHIP AND CONTROL AND DEPOSITED THEM INTO HIS CHECKING ACCOUNT, THEREBY MISAPPROPRIATING CUSTOMER FUNDS FOR HIS OWN PURPOSES. LEE MISUSED APPROXIMATELY $500,000 FROM THE CUSTOMER BY IMPROPERLY SELLING TREASURIES AND MUNICIPAL BOND IN THE CUSTOMER'S ACCOUNT, WITHOUT HIS KNOWLEDGE AND PERMISSION. WHEN THE CUSTOMER CONFRONTED LEE ABOUT THE SALES OF THE TREASURIES AND BONDS, LEE TOLD HIM HE WAS MISTAKEN AND NOT READING THE ACCOUNT STATEMENT CORRECTLY. LEE FAILED TO RESPOND TO FINRA REQUESTS FOR INFORMATION AND TO GIVE ON-THE-RECORD TESTIMONY.

Decision

Bar (Permanent)

All Capacities

Indefinite

12/10/2010

DEFAULT DECISION RENDERED NOVEMBER 12, 2010 WHEREIN LEE IS BARRED FROM ASSOCIATION WITH ANY FINRA MEMBER IN ANY CAPACITY. DECISION IS FINAL DECEMBER 10, 2010.