Initiated By
FINRA
Allegations
FINRA RULE 2010, NASD RULES 2110, 3030: WHILE GOLD WAS ASSOCIATED WITH A MEMBER FIRM, HE ENGAGED IN AN OUTSIDE BUSINESS ACTIVITY WITHOUT PROVIDING PRIOR WRITTEN NOTICE TO THE FIRM. SPECIFICALLY, PRIOR TO JOINING THE FIRM, GOLD ENTERED INTO AN AGREEMENT WITH A COMPANY THAT SEEDED HEDGE FUNDS, TO PROVIDE ADVISORY SERVICES FOR A PERIOD OF THREE YEARS, AND WHICH PERMITTED THE COMPANY TO PUBLICLY DISCLOSE THAT GOLD WAS A MEMBER OF THE ADVISORY BOARD. UPON HIS ASSOCIATION WITH THE FIRM, GOLD DISCLOSED HIS OWNERSHIP INTEREST IN A HEDGE FUND SEEDED BY THE COMPANY, AND ANOTHER UNAFFILIATED COMPANY. HOWEVER, GOLD FAILED TO PROVIDE WRITTEN NOTICE CONCERNING HIS ONGOING AFFILIATION WITH THE COMPANY AND CONTINUED PROVIDING THE COMPANY WITH ADVISORY SERVICES THROUGH IN OR AROUND JANUARY 2009. GOLD TERMINATED THE AGREEMENT IN AND AROUND FEBRUARY 2010. BECAUSE GOLD TERMINATED THE AGREEMENT PRIOR TO APRIL 2010, HE DID NOT RECEIVE COMPENSATION FROM THE COMPANY FOR HIS WORK WHILE HE WAS ASSOCIATED WITH HIS FIRM.
Resolution
Acceptance, Waiver & Consent(AWC)
Sanctions
Civil and Administrative Penalty(ies)/Fine(s)
Amount
$5,000.00
Sanctions
Suspension
Registration Capacities Affected
ALL CAPACITIES
Duration
45 DAYS
Start Date
8/15/2011
End Date
9/28/2011
Regulator Statement
WITHOUT ADMITTING OR DENYING THE FINDINGS, GOLD CONSENTED TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS; THEREFORE HE IS FINED $5,000 AND SUSPENDED FROM ASSOCIATION WITH ANY FINRA MEMBER IN ANY CAPACITY FOR 45 DAYS. THE FINE SHALL BE DUE AND PAYABLE EITHER IMMEDIATELY UPON REASSOCIATION WITH A MEMBER FIRM FOLLOWING THE 45 DAY SUSPENSION, OR PRIOR TO ANY APPLICATION OR REQUEST FOR RELIEF FROM ANY STATUTORY DISQUALIFICATION RESULTING FROM THIS OR ANY OTHER EVENT OR PROCEEDING, WHICHEVER IS EARLIER. THE SUSPENSION IS IN EFFECT FROM AUGUST 15, 2011 THROUGH SEPTEMBER 28, 2011.