FINRA

WILLFULLY VIOLATED SEC SECTION 10(B) OF THE SECURITIES EXCHANGE ACT OF 1934, SEC RULE 10B-5, FINRA RULES 2010, 2020, NASD RULES 2110, 2120, 2210(D)(1)(B), 2210(D)(1)(D), 2310(A): MAREK MADE UNSUITABLE INVESTMENT RECOMMENDATIONS TO A CUSTOMER BASED ON THE CUSTOMER'S RISK TOLERANCE, INVESTMENT OBJECTIVES, INVESTMENT KNOWLEDGE, AND INVESTMENT EXPERIENCE. A CUSTOMER OPENED INDIVIDUAL ACCOUNTS AT MAREK'S MEMBER FIRM AND MAREK SERVED AS THE REGISTERED REPRESENTATIVE ON THESE ACCOUNTS. AT THE TIME THAT THE CUSTOMER OPENED HIS ACCOUNTS, HE WAS A 60-YEAR-OLD RANCHER, HIS RISK TOLERANCE WAS CONSERVATIVE, HIS INVESTMENT OBJECTIVES WERE INCOME AND GROWTH, AND HE HAD VERY LIMITED INVESTMENT KNOWLEDGE AND EXPERIENCE. NOTWITHSTANDING THE CUSTOMERR'S CONSERVATIVE RISK TOLERANCE, MAREK RECOMMENDED THAT HE INVEST IN HIGH-RISK, ILLIQUID PRIVATE PLACEMENT INVESTMENTS AND VOLATILE, HIGH-RISK EXCHANGE TRADED FUNDS (ETFS). MAREK ALSO RECOMMENDED THAT THE CUSTOMER ENGAGE IN SHORT SELLING AND MARGIN TRADING. MAREK SENT EMAIL CORRESPONDENCE TO THE CUSTOMER IN WHICH HE INTENTIONALLY OR RECKLESSLY MADE FALSE AND MISLEADING REPRESENTATIONS REGARDING MATERIAL FACTS. THE EMAILS WERE SENT BY MAREK FROM HIS FIRM'S EMAIL ACCOUNT AND FROM PERSONAL EMAIL ACCOUNTS. THE FIRM'S POLICIES PROHIBITED REGISTERED REPRESENTATIVES FROM USING PERSONAL EMAIL ACCOUNTS FOR SECURITIES-RELATED CORRESPONDENCE. MAREK USED INSTRUMENTS OF COMMUNICATION IN INTERSTATE COMMERCE WHEN HE SENT EMAILS TO THE CUSTOMER OVER WIRELESS NETWORKS. MAREK ALSO EXECUTED TRANSACTIONS IN THE CUSTOMER'S ACCOUNTS VIA NATIONAL SECURITIES EXCHANGES. MAREK'S FALSE AND MISLEADING STATEMENTS WERE INTENTIONALLY DESIGNED TO DECEIVE THE CUSTOMER INTO BELIEVING THAT HIS FUNDS HAD BEEN INVESTED CONSERVATIVELY, AND THAT HIS INVESTMENTS WERE PERFORMING WELL. MAREK SENT EMAIL CORRESPONDENCE TO THE CUSTOMER THAT CONTAINED MISLEADING, EXAGGERATED AND/OR UNWARRANTED STATEMENTS. SEVERAL OF THE EMAILS ALSO CONTAINED PROJECTIONS OF INVESTMENT PERFORMANCE. MAREK SIGNED THE CUSTOMER'S SIGNATURE ON HIS FIRM'S CUSTOMER ACCOUNT DOCUMENT WHEN THE CUSTOMER DID NOT GIVE MAREK PERMISSION TO SIGN HIS NAME ON THE DOCUMENT OR ANY OTHER DOCUMENT. THE CUSTOMER DIRECTED MAREK, VIA AN E-MAIL TO MAREK AT HIS FIRM E¬MAIL ADDRESS, TO CEASE ALL TRADING ACTIVITY IN HIS ACCOUNTS. LATER THAT SAME DAY, MAREK SOLD OR CAUSED TO BE SOLD 600 SHARES OF AN ENTITY'S COMMON STOCK FROM ONE OF THE CUSTOMER'S ACCOUNTS WITHOUT HIS KNOWLEDGE, AUTHORIZATION, OR CONSENT.

Decision & Order of Offer of Settlement

Bar (Permanent)

All Capacities

11/2/2012

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

BREACH OF FIDUCIARY DUTY; CHURNING; MISREPRESENTATIONS

$659,000.00