FINRA

Langweiler was named a respondent in a FINRA complaint alleging that he excessively traded the account of a customer. The complaint alleges that Langweiler executed 257 trades causing the customer's account to diminish in value by more than 25%. Langweiler's trading was excessive and unsuitable, given that Langweiler was aware of the high cost-to-equity ratio for the customer's account yet engaged in this high volume trading to generate commissions of approximately $27,092. The complaint also alleges that Langweiler exercised discretion in the customer's account without receiving prior written authority from the customer to do so or the approval of his member firm. Langweiler's discretionary trading facilitated his excessive trading.

Decision

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

$17,500.00

Disgorgement

$18,192.00

Suspension

all capacities

14 months

1/16/2018

3/15/2019

Default Decision rendered December 8, 2017. The sanctions were based on findings that Langweiler traded excessively and unsuitable in a customer's account. The findings stated that Langweiler had control over trading in the customer's account. Langweiler, including what to buy and sell, the quantities, and the price and when each transaction would occur, made the customer's account investment decisions. During the period, which measured approximately 193 days, Langweiler executed approximately 257 trades in the customer's account. During that time, the customer made no withdrawals, maintained an average monthly account balance of $76,773.02, and incurred losses in excess of $33,000. In comparison, Langweiler's gross purchases in the customer's account totaled approximately $1,292,158. The annualized turnover rate for the account was 28.85, more than four times the number generally recognized as excessive. In addition, Langweiler's trading in the customer's account generated an annualized cost-to-equity ratio of 60.50 percent, which is more than three times the well-established benchmark for excessive trading. Because Langweiler knew that his trading outpaced the returns associated with the customer's account, Langweiler lacked a reasonable basis to believe that the number of recommended transactions was suitable for the customer. The findings also stated that Langweiler exercised discretion in the customer's account without receiving the customer's prior written authority or his member firm's approval. Langweiler exercised control over the customer's account at the firm through his unauthorized exercise of discretion. The decision became final January 5, 2018.

FINRA

Respondent Langweiler failed to respond to FINRA request for information.

Letter

Bar (Permanent)

All capacities

Indefinite

10/23/2017

Pursuant to FINRA Rule 9552(h) and in accordance with FINRA's Notice of Suspension and Suspension from Association letters dated July 19, 2017 and August 14, 2017, respectively, on October 23, 2017, Langweiler is barred from association with any FINRA member in any capacity. Respondent failed to request termination of his suspension within three months of the date of the Notice of Suspension; therefore, he is automatically barred from association with any FINRA member in any capacity.

FINRA

Langweiler was named a respondent in a FINRA complaint alleging that he willfully failed to amend his Form U4 to timely disclose federal tax liens, totaling approximately $143,000, and civil judgments, totaling approximately $56,700, that had been filed against him. The complaint alleges that Langweiler also provided inaccurate and incomplete responses regarding liens and judgments to his employer in a background questionnaire and he provided inaccurate and incomplete responses regarding liens and judgments to FINRA in a personal activity questionnaire.

Decision

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

$20,000.00

Monetary Penalty other than Fines

$1,539.55

Suspension

Any capacity

two years

5/15/2017

5/14/2019

The decision includes a finding that Langweiler willfully failed to disclose a material fact on a Form U4, and that under section 3(a)(39)(f) of the Securities Exchange Act of 1934 and Article iii, Section 4 of the FINRA By-Laws, this omission make him subject to a statutory disqualification with respect to association with a member.

Hearing Panel decision rendered March 17, 2017. The sanctions were based on findings that Langweiler willfully failed to timely disclose on his Form U4 three unsatisfied judgments and three unsatisfied federal tax liens. The findings stated that in one case involving an unsatisfied judgment, Langweiler only made the disclosure after being questioned about the judgment in an on-the-record interview with FINRA. The findings also stated that when Langweiler joined his member firm he falsely attested on a background questionnaire that he had no liens or judgments. At that time, he had at least one tax lien and one outstanding judgment against him. Langweiler similarly provided false information on a FINRA questionnaire, disclosing only one judgment and one federal tax lien while omitting others. Langweiler was suspended from association with any FINRA member in any capacity for two years for willfully failing to timely disclose on his Form U4 the unsatisfied IRS tax liens and unsatisfied judgments and suspended from association with any FINRA member in any capacity for two years for providing false information to his member firm and to FINRA. The suspensions are to run concurrently. The decision became final May 4, 2017.

FAILURE TO MAINTAIN NARCOTIC IN ORIGINAL CONTAINER

Dismissed

FINRA

NASD RULES 2110, 2510: LANGWEILER EXERCISED DISCRETION IN A CUSTOMER'S ACCOUNT WITHOUT OBTAINING WRITTEN AUTHORIZATION FROM THE CUSTOMER OR ACCEPTANCE OF THE ACCOUNT AS DISCRETIONARY BY HIS MEMBER FIRM. DURING THAT TIME PERIOD, LANGWEILER'S FIRM PROHIBITED DISCRETIONARY TRADING IN THOSE TYPES OF CUSTOMER ACCOUNTS.

Acceptance, Waiver & Consent(AWC)

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

$7,500.00

Suspension

ALL CAPACITIES

10 BUSINESS DAYS

10/11/2010

10/22/2010

WITHOUT ADMITTING OR DENYING THE FINDINGS, LANGWEILER CONSENTED TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS; THEREFORE HE IS FINED $7,500 AND SUSPENDED FROM ASSOCIATION WITH ANY FINRA MEMBER IN ANY CAPACITY FOR 10 BUSINESS DAYS. THE SUSPENSION IS IN EFFECT OCTOBER 11, 2010 THROUGH OCTOBER 22, 2010.

CLIENT HAD AN ACCOUNT WITH REP FOR OVER 5 YEARS. CLIENT FELT CONFIDENT ENOUGH TO TRANSFER WITH THE REP ON BOTH OCCASIONS. ACCOUNT WAS PROFITABLE FOR MOST OF THE TIME. CLIENT NEVER COMPLAINED. THE LEAST YEAR SOME STOCKS WERE DOWN. IN AN ATTEMPT TO RECOUP LOSSES CLIENT PICKED HANDFUL OF LOSING TRADES AND COMPLAINED TO FIRM. FIRM FOUND NO GROUNDS AND DENIED COMPLAINT. CLIENT TOOK THE ISSUE TO FINRA.--------------------WITHOUT ADMITTING OR DENYING THE FINDINGS, LANGWEILER CONSENTED TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS; THEREFORE HE IS FINED $7,500 AND SUSPENDED FROM ASSOCIATION WITH ANY FINRA MEMBER IN ANY CAPACITY FOR 10 BUSINESS DAYS. THE SUSPENSION IS IN EFFECT OCTOBER 11, 2010 THROUGH OCTOBER 22, 2010.

FINRA

NASD RULES 2110 AND 2370: RESPONDENT BORROWED $40,000 FROM A CUSTOMER WITHOUT HIS MEMBER FIRM APPROVAL AND CONTRARY TO THE FIRM'S WRITTEN SUPERVISORY PROCEDURES DURING RELEVANT PERIOD PROHIBITING SUCH LOANS.

Acceptance, Waiver & Consent(AWC)

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

Suspension

WITHOUT ADMITTING OR DENYING THE FINDINGS, RESPONDENT 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 10 BUSINESS DAYS. THE FINE SHALL BE DUE AND PAYABLE EITHER IMMEDIATELY UPON REASSOCIATION WITH A MEMBER FIRM FOLLOWING THE 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 IN ANY CAPACITY WILL BE IN EFFECT FROM SEPTEMBER 15, 2008, THROUGH SEPTEMBER 26, 2008. FINES PAID ON 05/29/2009.

RESPONDENT BORROWED $40,000 FROM CLOSE PERSONAL FRIEND, WHO ALSO WAS A CUSTOMER, AT THE SUGGESTION OF FRIEND, TO FACILITATE RESPONDENT'S DEPOSIT ON PURCHASE OF HIS FAMILY'S PRIMARY RESIDENCE. RESPONDENT CONTENDS HE INFORMED BRANCH OFFICE MANGER OF THE INTENDED BORROWING, WHO DID NOT OBJECT OR INDICATE SUCH BORROWING WAS PROHIBITED. RESPONDENT BELIEVED SUCH NOTICE, WITHOUT OBJECTION, CONSTITUTED APPROVAL BY FIRM. RESPONDENT FURTHER CONTENDS THAT THE FIRM'S WRITTEN SUPERVISORY PROCEDURES, WHICH WERE APPLICABLE AT THE TIME AND WERE LATER REVISED, WERE AMBIGUOUS AS TO WHETHER THE BORROWING WAS PROHIBITED IF IT WAS UNRELATED TO SECURITIES OR SECURITIES TRANSACTION. RESPONDENT HAS FULLY REPAID LOAN TO FRIEND.