NASD N/K/A FINRA

SECTION 10(B) OF THE EXCHANGE ACT AND RULE 10B-5, NASD RULES 2110, 2120, 2310, INTERPRETATIVE MATERIAL-2310-2- RESPONDENT RECOMMENDED AND EFFECTED UNSUITABLE MUTUAL FUND SWITCH TRANSACTIONS IN THE ACCOUNTS OF PUBLIC CUSTOMERS WITHOUT HAVING REASONABLE GROUNDS FOR BELIEVING THAT SUCH TRANSACTIONS WERE SUITABLE FOR THE CUSTOMERS IN VIEW OF THE NATURE OF THE RECOMMENDED TRANSACTIONS, AND IN LIGHT OF CUSTOMERS' FINANCIAL SITUATION, INVESTMENT OBJECTIVES, CIRCUMSTANCES AND NEEDS; IN CONNECTION WITH THE MUTUAL FUND RECOMMENDATIONS TO CUSTOMERS, EPSTEIN, BY USE OF THE INSTRUMENTALITIES OF INTERSTATE COMMERCE OR THE MAILS, INTENTIONALLY OR RECKLESSLY, EMPLOYED DEVICES TO DEFRAUD CUSTOMERS BY MAKING UNTRUE STATEMENTS OF MATERIAL FACTS OR OMITTING MATERIAL FACTS NECESSARY TO MAKE THE STATEMENTS, IN LIGHT OF THE CIRCUMSTANCES IN WHICH THEY WERE MADE, NOT MISLEADING.

Decision

Bar (Permanent)

All Capacities

Indefinite

12/20/2007

Monetary Penalty other than Fines

$4,398.20

HEARING PANEL DECISION RENDERED OCTOBER 31, 2005, WHEREIN RESPONDENT IS BARRED FROM ASSOCIATION WITH ANY NASD MEMBER IN ANY CAPACITY. ON NOVEMBER 29, 2005, RESPONDENT APPEALED THE HEARING PANEL'S DECISION TO THE NAC. NAC DECISION RENDERED DECEMBER 20, 2007, WHEREIN THE HEARING PANEL'S FINDINGS THAT RESPONDENT MADE UNSUITABLE RECOMMENDATIONS, IN VIOLATION OF NASD RULES 2110, 2310, AND INTERPRETATIVE MATERIAL 2310-2 ARE AFFIRMED AND RESPONDENT IS BARRED FROM ASSOCIATION WITH ANY FINRA MEMBER IN ANY CAPACITY. NAC DECLINED TO REACH FINDINGS THAT RESPONDENT MADE MATERIAL MISREPRESENTATIONS AND OMISSIONS WHEN HE RECOMMENDED MUTUAL FUND SWITCH TRANSACTIONS TO CUSTOMER, IN VIOLATION OF SECTION 10(B) OF THE EXCHANGE ACT, AND RULE 10B-5 THEREUNDER, AND NASD RULES 2110, 2120 AND INTERPRETATIVE MATERIAL 2310-2. NAC AFFIRMED THE HEARING PANEL'S IMPOSITION OF $4,398.20 IN HEARING COSTS. ON JANUARY 17, 2008, RESPONDENT APPEALED THE NAC DECISION TO THE SEC. SEC DECISION RENDERED JANUARY 30, 2009 WHEREIN THE SEC AFFIRMED FINRA'S DISCIPLINARY ACTION AND UPHELD RESPONDENT'S BAR; THEREFORE HE IS BARRED FROM ASSOCIATION WITH ANY FINRA MEMBER IN ANY CAPACITY AND ORDERED TO PAY $4,398.20 IN HEARING COSTS. ON FEBRUARY 26, 2009, RESPONDENT APPEALED THE SEC'S DECISION TO THE U.S. COURT OF APPEALS FOR THE THIRD CIRCUIT. U.S. COURT OF APPEALS DECISION RENDERED NOVEMBER 23, 2010 WHICH DENIED RESPONDENT'S PETITION FOR REVIEW THEREFORE HE IS BARRED FROM ASSOCIATION WITH ANY FINRA MEMBER IN ANY CAPACITY. THE BAR IS EFFECTIVE AS OF DECEMBER 20, 2007, THE DATE THE NAC DECISION WAS RENDERED.