FINRA

KATAYANAGI WAS NAMED A RESPONDENT IN A FINRA COMPLAINT ALLEGING THAT HE MISAPPROPRIATED APPROXIMATELY $14,100 FROM CUSTOMERS. THE COMPLAINT ALLEGES THAT, IN HIS ROLE AS A PERSONAL BANKER, HE HAD ACCESS TO THE COMPUTER SYSTEM OF HIS MEMBER FIRM'S AFFILIATED BANK, AS WELL AS TO BLANK TEMPORARY ATM CARDS THAT COULD BE ISSUED TO BANK CUSTOMERS. KATAYANAGI CREATED TEMPORARY ATM CARDS THAT ENABLED HIM TO GAIN ACCESS TO CUSTOMER BANK ACCOUNTS. KATAYANAGI CREATED PIN NUMBERS FOR EACH CARD AND WITHDREW FUNDS FROM THE CUSTOMERS' BANK ACCOUNTS AT ATMS FOR HIS OWN PERSONAL USE. THE COMPLAINT ALSO ALLEGES THAT KATAYANAGI DID NOT HAVE AUTHORIZATION FROM THE BANK CUSTOMERS TO WITHDRAW FUNDS FROM THEIR ACCOUNTS.

Decision & Order of Offer of Settlement

Bar (Permanent)

All Capacities

8/13/2014

WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, KATAYANAGI CONSENTED TO THE SANCTION AND TO THE ENTRY OF FINDINGS THAT HE MISAPPROPRIATED APPROXIMATELY $14,100 FROM BANK CUSTOMERS. THE FINDINGS STATED THAT IN HIS ROLE AS A PERSONAL BANKER, HE HAD ACCESS TO THE COMPUTER SYSTEM OF HIS MEMBER FIRM'S AFFILIATED BANK, AS WELL AS TO BLANK TEMPORARY AUTOMATIC TELLER MACHINE (ATM) CARDS THAT COULD BE ISSUED TO BANK CUSTOMERS. KATAYANAGI CREATED TEMPORARY ATM CARDS THAT ENABLED HIM TO GAIN ACCESS TO CUSTOMER BANK ACCOUNTS. KATAYANAGI CREATED PERSONAL IDENTIFICATION NUMBERS (PINS) FOR EACH CARD AND WITHDREW FUNDS FROM THE CUSTOMERS' BANK ACCOUNTS AT ATMS FOR HIS OWN PERSONAL USE. KATAYANAGI DID NOT HAVE AUTHORIZATION FROM THE BANK CUSTOMERS TO WITHDRAW FUNDS FROM THEIR ACCOUNTS. AS A RESULT OF THIS MISCONDUCT, KATAYANAGI WAS ARRESTED AND CHARGED WITH FELONY GRAND LARCENY IN THE THIRD DEGREE AND LATER PLED GUILTY TO A MISDEMEANOR CHARGE OF PETIT LARCENY. AFTER FULFILLING THE CONDITIONS OF THE PLEA, KATAYANAGI RE-PLED TO DISORDERLY CONDUCT.