ILLINOIS

FINRA ENTERED AND ORDER WHICH PROVIDED THAT SMITH VIOLATED RULE 2010 IN THAT HE MISAPPROPRIATED FROM HIS MEMBER FIRM OVER $12,600 BY SUBMITTING FALSE TRAVEL AND EXPENSE VOUCHERS, AND WHICH CAUSED THE FIRM TO KEEP FALSE AND INACCURATE BOOKS AND RECORDS, AND FOR WHICH SMITH WAS PERMANENTLY BARRED FROM ASSOCIATION WITH ANY FINRA MEMBER IN ANY CAPACITY

CONSENT ORDER OF REVOCATION

Revocation

APRIL 9, 2013 FINRA PERMANENTLY BARRED RESPONDENT FROM ASSOCIATION WITH ANY FINRA MEMBER; CONSEQUENTLY, AND PURSUANT TO SECTION 8.E(1)(J) OF THE ILLINOIS SECURITIES LAW, HIS SALESPERSON REGISTRATION IS REVOKED

FINRA

FINRA RULE 2010 AND NASD RULE 3110: SMITH MISAPPROPRIATED OVER $12,600 FROM HIS MEMBER FIRM BY SUBMITTING 19 FALSE TRAVEL AND EXPENSE REPORTS TO THE FIRM FOR MEALS, DRINKS AND TRANSPORTATION PURPORTEDLY FOR CLIENT ENTERTAINMENT. THE 19 EXPENSE REPORTS WERE FALSE AND MISLEADING BECAUSE NONE OF THE CLIENTS LISTED BY SMITH ATTENDED THE EVENTS AND, ON NUMEROUS OCCASIONS, THE ONLY ATTENDEES WERE THE FIRM'S EMPLOYEES, NOT CLIENTS. BY SUBMITTING THE FALSE EXPENSE REPORTS, SMITH INDUCED HIS FIRM TO PAY THESE EXPENSES. SMITH REIMBURSED $12,600 TO THE FIRM. BY INTENTIONALLY SUBMITTING FALSE AND MISLEADING EXPENSE REPORTS, SMITH CAUSED THE BOOKS AND RECORDS PRESERVED BY HIS FIRM TO BE INACCURATE.

Acceptance, Waiver & Consent(AWC)

Bar (Permanent)

All Capacities

Indefinite

4/9/2013

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