NEW YORK STATE DEPARTMENT OF INSURANCE

FIRM, AS INSURANCE AGENCY, FAILED TO DISCLOSE FINRA ARBITRATION (CASE 06-02039), WHICH ALLEGED FRAUD ON INSURANCE LICENSE RENEWAL FOR RR. SINCE RR IS AN OFFICER OF FIRM, THE NEW YORK DEPARTMENT OF INSURANCE REQUIRED RR TO BE RESPONDENT TO STIPULATION.

Stipulation and Consent

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

$750.00

ON 3/8/2007, UPON RENEWAL OF RR'S INSURANCE LICENSE WITH THE NEW YORK STATE INSURANCE DEPARTMENT, STAFF OF THE FIRM, ON BEHALF OF THE RR, INCORRECTLY INDICATED "NO" TO THE QUESTION "ARE YOU, OR ANY BUSINESS IN WHICH YOU ARE OR WERE AN OWNER, PARTNER, OFFICER OR DIRECTOR, DURING YOUR CONNECTION THEREWITH, CURRENTLY A PARTY TO, OR HAVE YOU OR ANY BUSINESS IN WHICH YOU ARE OR WERE AN OWNER, PARTNER OFFICER, OR DIRECTOR, DURING YOUR CONNECTION THEREWITH, BEEN FOUND LIABLE IN ANY LAWSUIT OR ARBITRATION PROCEEDING INVOLVING ALLEGATIONS OF FRAUD, MISAPPROPRIATION OR CONVERSION OF FUNDS, OR MISREPRESENTATION OR BREACH OF FIDUCIARY DUTY." DUE TO THE FACT THAT RR IS AN ASSISTANT VICE PRESIDENT OF LEGEND EQUITIES CORPORATION, THE ANSWER TO THIS QUESTION SHOULD HAVE BEEN "YES", AS LEGEND EQUITIES CORPORATION IS A BROKER-DEALER AND AN INSURANCE AGENCY AND WAS INVOLVED IN A FINRA ARBITRATION CASE (CASE NUMBER 06-02039) AT THE TIME OF THE FILING. THIS WAS AN ADMINISTRATIVE ERROR ANSWERED AND SUBMITTED BY THE FIRM'S HOME OFFICE PERSONNEL ON BEHALF OF THE RR. RR, AS ASSISTANT VICE PRESIDENT AND SUB-LICENSEE OF LEGEND EQUITIES CORPORATION, WAS NAMED AS A RESPONDENT IN "STIPULATION NO. 2009-0308-S" ENTERED INTO WITH THE NEW YORK STATE INSURANCE DEPARTMENT.