FINRA

FINRA RULES 2010, 8210: ANGLE FAILED TO PROVIDE INFORMATION AND DOCUMENTATION REQUESTED BY FINRA. ANGLE WAS THE CHIEF EXECUTIVE OFFICER (CEO) OF A FINRA MEMBER FIRM AND WAS DESIGNATED ON THE UNIFORM REQUEST FOR BROKER-DEALER WITHDRAWAL (FORM BDW) AS THE RECORDS CUSTODIAN OF THE FIRM. AS A RESULT OF THE FIRM'S BDW FILING, A CLOSE-OUT EXAMINATION OF THE FIRM WAS COMMENCED TO DETERMINE WHETHER ANY VIOLATIONS OF THE FEDERAL SECURITIES LAW AND/OR FINRA RULES HAD OCCURRED SINCE THE COMPLETION OF THE FIRM'S MOST RECENT FINRA EXAMINATION. AMONG OTHER THINGS, FINRA INTENDED TO DETERMINE WHETHER CERTAIN RULE VIOLATIONS NOTED IN PREVIOUS EXAMINATIONS, INCLUDING THE FAILURE TO REPORT CUSTOMER COMPLAINTS TO FINRA AS REQUIRED, HAD BEEN REMEDIATED OR HAD CONTINUED. BECAUSE ANGLE WAS DESIGNATED ON THE FIRM'S FORM BDW AS THE RECORDS CUSTODIAN FOR THE FIRM, ALL CORRESPONDENCE AND ALL REQUESTS FOR INFORMATION WERE SENT TO HIM. INITIALLY, FINRA REQUESTED DOCUMENTS AND INFORMATION FROM ANGLE WITHOUT CITING FINRA RULE 8210 AS THE BASIS FOR THE REQUESTS. WHEN THOSE ATTEMPTS TO OBTAIN THE DOCUMENTS AND INFORMATION NECESSARY TO COMPLETE AND CONCLUDE THE CLOSEOUT EXAMINATION WERE UNSUCCESSFUL, FINRA REQUESTED THE DOCUMENTS AND INFORMATION PURSUANT TO FINRA RULE 8210. TO DATE, ANGLE HAS FAILED TO PROVIDE THE INFORMATION AND DOCUMENTS REQUESTED BY FINRA.

Decision & Order of Offer of Settlement

Bar (Permanent)

All Capacities

Indefinite

8/13/2014

WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, ANGLE CONSENTED TO THE SANCTION AND TO THE ENTRY OF FINDINGS THAT HE FAILED TO PROVIDE INFORMATION AND DOCUMENTS REQUESTED BY FINRA. THE FINDINGS STATED THAT AS A RESULT OF ANGLE'S MEMBER FIRM'S FORM BDW FILING, A CLOSE-OUT EXAMINATION WAS COMMENCED TO DETERMINE WHETHER ANY VIOLATIONS OF THE FEDERAL SECURITIES LAWS AND/OR FINRA RULES HAD OCCURRED SINCE THE COMPLETION OF THE FIRM'S MOST RECENT FINRA EXAMINATION. BECAUSE ANGLE WAS DESIGNATED AS THE RECORDS CUSTODIAN FOR HIS FIRM, ALL CORRESPONDENCE AND REQUESTS FOR INFORMATION WERE SENT TO HIM AT HIS RESIDENTIAL ADDRESS OF RECORD IN CRD AND ALSO TO HIM AT THE FIRM'S ADDRESS, WHICH HE LISTED IN THE CUSTODIAN INFORMATION SECTION OF THE FORM BDW. ANGLE CLAIMED HE COULD NOT PRODUCE CERTAIN REQUESTED DOCUMENTS BECAUSE THE FIRM DID NOT HAVE ACCESS TO THEM AND ITS FORMER CLEARING FIRMS WOULD NOT RELEASE THE DOCUMENTS TO HIM. THESE RECORDS WERE, OR SHOULD HAVE BEEN, AT THE LOCATION AT WHICH THE FIRM'S RECORDS WERE KEPT FOLLOWING ITS WITHDRAWAL FROM MEMBERSHIP, AND CONSTITUTED RECORDS THAT ANGLE WAS OBLIGATED, AS CUSTODIAN, TO PROVIDE UPON FINRA'S REQUEST.

MISREPRESENTATIONS OF MATERIAL FACTS AND/OR OMISSION OF MATERIAL FACTS; BREACH OF FIDUCIARY DUTY; NEGLIGENCE; UNSUITABLE INVESTMENTS;

$606,400.00

MAINE OFFICE OF SECURITIES

THE ALLEGATIONS ARE THAT AN ACUMENT SECURITIES, INC., SALES REPRESENTATIVE EFFECTED SECURITIES TRANSACTONS IN MAINE WITHOUT BEING LICENSED IN MAINE, AND THAT THE FIRM AND ITS CONTROL PERSONS FAILED TO PROPERLY SUPERVISE THE SALES REPRESENTIVE TO PREVENT THE UNLICENSED ACTIVITY.

Consent

Monetary/Fine

$6,000.00

Disgorgement/Restitution

RESTITUTION TO MAINE CONSUMERS TOTALING $29,066.83

AS A RESULT OF THE CONSENT AGREEMENT, THE MAINE OFFICE OF SECURITIES DID NOT PURSUE ADMINISTRATIVE ACTION AGAINST ACUMENT, ANGLE, OR WHITE.

PURSUANT TO THE CONSENT AGREEMENT, ACUMENT, ANGLE, AND WHITE PAID A $6,000 FINE TO THE MAINE OFFICE OF SECURITIES AND RESTITUTION TOTALING $29,066.83 TO MAINE CONSUMERS WHO WERE NOT REPRESENTED IN A PRIVATE ACTION. ACUMENT RESOLVED THE ISSUE OF THE UNLICENSED TRANSACTIONS WITH THE REMAINING MAINE CONSUMERS, WHO WERE REPRESENTED BY LEGAL COUNSEL, THROUGH PRIVATE NEGOTIATIONS. ACUMENT PAID $360,000 IN FULL AND FINAL SATISFACTION OF THE CLAIMS AND LEGAL COSTS.

NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC.

ALLEGING VIOLATIONS OF NASD RULES 2110, 2510 , 2860(B)(20)(A),AND 3010 A MEMBER FIRM, ACTING THROUGH ANGLE, FAILED TO ESTABLISH AND IMPLEMENT WRITTEN SUPERVISORY PROCEDURES ADEQUATE TO DETECT AND PREVENT THE VIOLATIONS WITH RESPECT TO THE ACCOUNTS OF PUBLIC CUSTOMERS AND TO OTHERWISE ADEQUATELY SUPERVISE AN INDIVIDUAL'S ACTIVITIES IN CONNECTION WITH THOSE ACCOUNTS; AND, A MEMBER FIRM, ACTING THROUGH RESPONDENT ANGLE ENTERED INTO 16 SETTLEMENT AGREEMENTS WITH CUSTOMERS WHICH CONTAINED CONFIDENTIALITY CLAUSES WHICH PROHIBITED OR DISCOURAGED THOSE CUSTOMERS FROM DISCUSSING THE SETTLEMENTS WITH OR DISCLOSING THE UNDERLYING FACTS TO NASD AND OTHER REGULATORS.

Decision & Order of Offer of Settlement

Monetary/Fine

$50,000.00

Censure

WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, ANGLE CONSENTED TO THE DESCRIBED SANCTONS AND TO THE ENTRY OF FINDINGS,THEREFORE, HE IS CENSURED AND FINED $50,000, JOINTLY AND SEVERALLY.

THE PARTIES MADE AN OFFER, NEITHER ADMITTING OR DENYING THE ALLEGATIONS, CONSEQUENTLY TO THE ENTRY OF A FINDING OF FACT. THE OFFER WAS ACCEPTED AND THE FOLLOWING SANCTIONS WERE ENTERED ON 06/17/1999; CENSURE AND FINE OF $20,000; JOINT AND SEVERAL WITH OTHER NAMED RESPONDENTS; AND SEPARATELY, A FINE OF $30,000, JOINT AND SEVERAL WITH OTHER RESPONDENT.