FINRA

RESPONDENT DAVIS FAILED TO COMPLY WITH AN ARBITRATION AWARD OR SETTLEMENT AGREEMENT OR TO SATISFACTORILY RESPOND TO A FINRA REQUEST TO PROVIDE INFORMATION CONCERNING THE STATUS OF COMPLIANCE.

LETTER

Suspension

ANY CAPACITY

N/A

3/7/2012

PURSUANT TO ARTICLE VI, SECTION 3 OF FINRA BY-LAWS AND FINRA RULE 9554, RESPONDENT DAVIS IS SUSPENDED FOR FAILURE TO COMPLY WITH AN ARBITRATION AWARD OR SETTLEMENT AGREEMENT OR TO SATISFACTORILY RESPOND TO A FINRA REQUEST TO PROVIDE INFORMATION CONCERNING THE STATUS OF COMPLIANCE.

FINRA

NASD RULES 2110, 2330(A): DAVIS CONVERTED $69,200 OF CUSTOMERS' FUNDS FROM HIS MEMBER FIRM'S ACTIVE ASSETS ACCOUNTS FOR HIS PERSONAL USE. DAVIS WROTE CHECKS MADE PAYABLE TO THE ORDER OF "CASH", ENABLING HIM TO WITHDRAW FUNDS FROM ACTIVE ASSETS ACCOUNTS BELONGING TO CUSTOMERS, AND THEN DEPOSITED THE WITHDRAWN FUNDS INTO HIS PERSONAL BANK ACCOUNT. DAVIS ALSO FORGED CUSTOMERS' SIGNATURES ON THE CHECKS BEFORE NEGOTIATING THEM.

Acceptance, Waiver & Consent(AWC)

Bar (Permanent)

All Capacities

5/11/2010

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

UTAH DIVISION OF SECURITIES

THE DIVISION ALLEGES: (1) DAVIS COMMITTED SECURITIES FRAUD UNDER SECTION 61-1-1(3) OF THE UTAH UNIFORM SECURITIES ACT ("ACT") BY EFFECTING UNAUTHORIZED TRANSACTIONS, DISTRIBUTIONS OF MONIES, AND WITHDRAWALS, THE CONDUCT OF WHICH CONSTITUTES AN ACT, PRACTICE OR COURSE OF BUSINESS THAT OPERATED AS A FRAUD OR DECEIT UPON HIS CLIENTS, BROKER-DEALER, AND EXPOSED HIS BROKER-DEALER TO CIVIL LIABILITY; (2) DAVIS ENGAGED IN DISHONEST OR UNETHICAL BUSINESS PRACTICES UNDER SECTION 61-1-6(2)(G) OF THE ACT BY THE AFOREMENTIONED UNAUTHORIZED TRANSACTIONS; AND (3) DAVIS'S MISCONDUCT WAS A WILLFUL VIOLATION OF THE ACT UNDER SECTION 61-1-6(2)(B) OF THE ACT.

Stipulation and Consent

Bar (Permanent)

ALL CAPACITIES IN UTAH (BROKER DEALER, INVESTMENT ADVISER, ISSUER-AGENT)

PERMANENT

11/18/2009

Cease and Desist

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

$90,000.00

Revocation