FLORIDA OFFICE OF FINANCIAL REGULATION

FINGER WAS CHARGED AND PLED GUILTY TO A FELONY COUNT OF WIRE FRAUD.

Order

Bar (Permanent)

ALL CAPACITIES

11/30/2012

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

SEC ADMIN RELEASE 34-67041, MAY 22, 2012: THE SECURITIES AND EXCHANGE COMMISSION ("COMMISSION") DEEMS IT APPROPRIATE AND IN THE PUBLIC INTEREST THAT PUBLIC ADMINISTRATIVE PROCEEDINGS BE, AND HEREBY ARE, INSTITUTED PURSUANT TO SECTION 15(B) OF THE SECURITIES EXCHANGE ACT OF 1934 ("EXCHANGE ACT") AGAINST RICHARD A. FINGER, JR. (FINGER OR RESPONDENT). ON APRIL 13, 2012, JUDGMENT WAS ENTERED AGAINST FINGER BASED ON HIS GUILTY PLEA TO ONE COUNT OF WIRE FRAUD, IN VIOLATION OF TITLE 18 UNITED STATES CODE, SECTIONS 1342 AND 1343, BY THE UNITED STATES DISTRICT COURT FOR THE WESTERN DISTRICT OF WASHINGTON, IN CRIM. NO. 2:11-CR-00382-RSM-1. AS PART OF THE JUDGMENT, FINGER WAS SENTENCED TO 54 MONTHS IN PRISON AND THREE YEARS OF SUPERVISED RELEASE.

Order

Bar (Permanent)

BARRED FROM ASSOCIATION WITH ANY BROKER, DEALER, INVESTMENT ADVISER, MUNICIPAL SECURITIES DEALER, MUNICIPAL ADVISOR,

5/22/2012

COMMODITY FUTURES TRADING COMMISSION (CFTC)

CFTC PRESS RELEASE 6214-12, MARCH 21, 2012: THE CFTC FILED A NOTICE OF INTENT TO REVOKE THE REGISTRATIONS (NOTICE) OF RICHARD ALLAN FINGER, JR. (FINGER), A RESIDENT OF WASHINGTON STATE, AND HIS COMPANY, A WASHINGTON STATE LIMITED LIABILITY COMPANY. THE NOTICE ALLEGES THAT, PURSUANT TO THE COMMODITY EXCHANGE ACT (CEA), FINGER WAS SUBJECT TO A STATUTORY DISQUALIFICATION OF HIS REGISTRATION BASED UPON HIS PLEA OF GUILTY TO ONE COUNT OF WIRE FRAUD, IN VIOLATION OF 18 U.S.C. § 1343 IN THE CRIMINAL ACTION, UNITED STATES V. FINGER, CRIM. CASE NO. 11-MJ-424 (W.D. WASH.). THE NOTICE ALLEGES THAT IN THE CRIMINAL ACTION, FINGER ADMITTED TO CERTAIN FACTS, INCLUDING THAT: FROM LATE 2009 TO AUGUST 2011, FINGER WAS A REGISTERED SECURITIES REPRESENTATIVE IN WASHINGTON STATE; IN APPROXIMATELY FEBRUARY 2011, FINGER STARTED HIS OWN BROKER-DEALER; IN ORDER TO INDUCE HIS EXISTING INVESTORS TO TRANSFER THEIR ACCOUNTS TO HIS NEW COMPANY, FINGER FRAUDULENTLY INFLATED THE VALUES OF THEIR ACCOUNTS IN STATEMENTS HE MADE TO THEM; THEREAFTER, FINGER CHURNED THE SECURITIES ACCOUNTS OF AT LEAST 10 OF HIS INVESTORS, DESPITE TELLING THEM THAT HE WOULD USE A CONSERVATIVE INVESTMENT STRATEGY. FOR EXAMPLE, WITH RESPECT TO ONE INVESTOR, FINGER'S CHURNING REDUCED THE VALUE OF THE INVESTOR'S ACCOUNT FROM APPROXIMATELY $1 MILLION TO LESS THAN $225,000 WITHIN TWO MONTHS; AND IN ORDER TO CONCEAL HIS CHURNING, FINGER EMAILED FALSE ACCOUNT STATEMENTS TO HIS INVESTORS.

Order

Revocation

UNDERTAKINGS

violation of the Washington State Securities Act; violation of the Securities Exchange Act of 1934; breach of fiduciary duty; unjust enrichment; fraudulent misrepresentation; negligent misrepresentation; and conversion.

$5,260,247.00

FINRA

FINRA RULE 2010: FINGER PROVIDED CUSTOMERS WITH FABRICATED ACCOUNT STATEMENTS THAT OVERSTATED THE NET ASSET VALUES OF THEIR ACCOUNTS AND UNDERSTATED THE AMOUNTS OF COMMISSIONS THE CUSTOMERS HAD BEEN CHARGED. FINGER HAS BEEN THE CHIEF EXECUTIVE, SOLE OWNER AND ONLY REGISTERED REPRESENTATIVE OF HIS MEMBER FIRM MANAGING THE ACCOUNTS FOR CUSTOMERS. FINGER EXERCISED DISCRETIONARY AUTHORITY IN SOME OR ALL OF THOSE ACCOUNTS. AS A RESULT OF HIS TRADING ACTIVITY, SOME OF HIS CUSTOMERS INCURRED APPROXIMATELY $1,594,947 IN LOSSES IN SEVERAL ACCOUNTS AT THE FIRM AND THE CUSTOMERS WERE CHARGED APPROXIMATELY $1,842,031 IN COMMISSIONS IN THOSE ACCOUNTS. FINGER CONCEALED THE LOSSES INCURRED IN THOSE ACCOUNTS BY SENDING FABRICATED ACCOUNT STATEMENTS TO THE CUSTOMERS VIA EMAIL. HE CREATED AND SENT SEVERAL INACCURATE STATEMENTS FOR THE ACCOUNTS, WHICH OVERSTATED THE NET ASSET VALUES BY AMOUNTS RANGING FROM APPROXIMATELY $6,742 TO APPROXIMATELY $1,540,719. SOME OF THOSE STATEMENTS ALSO UNDERSTATED THE AMOUNTS OF COMMISSIONS THAT HAD BEEN CHARGED IN THOSE ACCOUNTS BY AMOUNTS RANGING FROM APPROXIMATELY $2,417 TO $430,000.

Acceptance, Waiver & Consent(AWC)

Bar (Permanent)

All Capacities

12/8/2011

WITHOUT ADMITTING OR DENYING THE FINDINGS, FINGER CONSENTED TO THE DESCRIBED SANCTION AND TO THE ENTRY OF FINDINGS; THEREFORE, HE IS BARRED FROM ASSOCIATION WITH ANY FINRA MEMBER IN ANY CAPACITY.

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

SEC LITIGATION RELEASE 22087, SEPTEMBER 8, 2011: THE SECURITIES AND EXCHANGE COMMISSION CHARGED A SEATTLE-AREA SECURITIES BROKER WITH FRAUD, AND SEEKS AN ORDER FROM THE FEDERAL COURT IN SEATTLE TO FREEZE THE BROKER'S ASSETS. THE SEC ALLEGES THAT RICHARD A. FINGER, JR. OF BELLEVUE, WASH., AND HIS BROKERAGE FIRM LOST MILLIONS OF DOLLARS FOR CUSTOMERS IN A MATTER OF MONTHS THROUGH RISKY, UNDISCLOSED OPTIONS TRADING AND EXCESSIVE, CONCEALED COMMISSIONS. FINGER OPENED THE FIRM IN FEBRUARY AND BEGAN MANAGING NEARLY $5 MILLION IN ASSETS, MAINLY FOR FRIENDS AND FAMILY MEMBERS. THE SEC ALLEGES THAT FINGER CONCEALED HIS MISCONDUCT FROM CUSTOMERS BY PROVIDING THEM WITH DOCTORED ACCOUNT STATEMENTS INFLATING THEIR ACCOUNT BALANCES AND UNDERSTATING HIS COMMISSION CHARGES. UNBEKNOWNST TO HIS CUSTOMERS, FINGER ALLEGEDLY EMBARKED ON A HIGH-FREQUENCY, HIGH-RISK OPTIONS TRADING STRATEGY THAT LOST NEARLY $2 MILLION OVER THE FOLLOWING MONTHS. AT THE SAME TIME, THE FIRM CHARGED CUSTOMERS MORE THAN $2 MILLION IN COMMISSIONS, AND FINGER DIVERTED SOME FUNDS TO HIS PERSONAL BANK ACCOUNT TO SUPPORT A LIFESTYLE THAT INCLUDED A $2 MILLION HOME AND LUXURY VEHICLES. THE SEC'S COMPLAINT, FILED IN FEDERAL DISTRICT COURT FOR THE WESTERN DISTRICT OF WASHINGTON, CHARGES FINGER AND THE FIRM WITH VIOLATING SECTION 10(B) OF THE SECURITIES EXCHANGE ACT OF 1934 (EXCHANGE ACT) AND RULE 10B-5 THEREUNDER AND CHARGES THE FIRM WITH VIOLATING SECTION 15(C)(1)(A) OF THE EXCHANGE ACT AND FINGER WITH AIDING AND ABETTING VIOLATIONS OF SECTION 15(C)(1)(A). THE SEC SEEKS PERMANENT INJUNCTIONS, AN ACCOUNTING, AN ASSET FREEZE, DISGORGEMENT WITH PREJUDGMENT INTEREST, AND CIVIL MONETARY PENALTIES.

Judgment Rendered

Injunction

FINRA

RESPONDENT RICHARD ALLAN FINGER JR. FAILED TO RESPOND TO FINRA REQUEST FOR INFORMATION

LETTER

Suspension

ANY CAPACITY

N/A

9/22/2011

PURSUANT TO FINRA RULE 9552 AND IN ACCORDANCE WITH FINRA'S INTENT TO SUSPEND LETTER DATED AUGUST 29, 2011 RICHARD ALLAN FINGER JR. IS SUSPENDED ON SEPTEMBER 22, 2011 FROM ASSOCIATING WITH ANY FINRA MEMBER FIRM IN ANY CAPACITY. IF RICHARD ALLAN FINGER JR. FAILS TO REQUEST TERMINATION OF THE SUSPENSION WITHIN THREE MONTHS OF THE DATE OF THE NOTICE OF INTENT, HE WILL AUTOMATICALLY BE BARRED ON DECEMBER 2, 2011 FROM ASSOCIATION WITH ANY FINRA MEMBER IN ANY CAPACITY PURSUANT TO FINRA RULE 9552(H).

NASD

NASD CONDUCT RULE 2110 AND 3040 - RESPONDENT RICHARD A. FINGER ENGAGED IN PRIVATE SECURITIES TRANSACTIONS, WITHOUT PROVIDING PRIOR WRITTEN NOTICE TO HIS MEMBER FIRM AND, ALSO ENGAGED IN CONDUCT INCONSISTENT WITH HIGH STANDARDS OF COMMERCIAL HONOR AND JUST AND EQUITABLE PRINCIPLES OF TRADE.

Acceptance, Waiver & Consent(AWC)

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

Suspension

WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, THE RESPONDENT RICHARD A. FINGER CONSENTED TO THE FINDING OF THE ALLEGATIONS AND TO THE FOLLOWING SANCTIONS: FINED $5,000 AND SUSPENDED FROM ASSOCIATION WITH ANY NASD MEMBER IN ANY CAPACITY FOR TWENTY (20) BUSINESS DAYS. THE SUSPENSION WILL COMMENCE WITH THE OPENING OF BUSINESS ON JUNE 25, 2004, AND WILL CONCLUDE AT THE CLOSE OF BUSINESS ON JULY 23, 2004. FINES PAID.